Discuss the merits and drawbacks of government$-$imposed limitations on the investment

strategies of pension fund brokers, specifically regarding the mandate that a portion of

pension funds must be allocated toward the development of South Africa's infrastructure. In

your answer, consider the implications of such regulations on the financial performance of

pension funds, the potential benefits to national infrastructure, and the broader socio

economic impacts. Further, evaluate whether such a policy aligns with the fiduciary duties of

pension fund managers and the principles of investment diversification.

This Exam section will be graded as follows

$$ Discussion of the current situation with pension funds $(4$ Marks$)$

$$ Discussion of the limitations $(4$ Marks$)$

$$ Discussion of the performance of the funds and potential benefits $(4$ Marks$)$

$$ Argument presented and conclusion reached $(4$ Marks