BUSINESS NEWS - With R1.928 trillion of assets under management, the PIC is the largest asset manager in South Africa.
It is not only tasked with growing these assets and assuring government pensioners with financial security on retirement, but it also has to support and finance the latest government development plan.
It is seen as the ultimate cash cow, and the provider of the last resort.
The PIC may be a government entity, and the members of the pension funds may be government employees, but don’t be misled, the PIC is investing private money.
In this regard, the PIC should be above reproach.
And its annual financial statements should be transparent.
In fact, the PIC annual financial statements should set a benchmark for transparency and financial stability.
R1.691 trillion (87.72%) of the PIC’s funds represent assets managed on behalf of the GEPF.
The objectives of a normal pension fund would include growth, capital preservation, and income.
Though the GEPF is a defined benefit plan, the payment made to GEPF pensioners is based on a formula.
The payments are guaranteed by government.
This may be cold comfort in years to come.
Perhaps the perception of financial security flowing from the government guarantee allows for the fuzzy conflicting objectives of the PIC, which include not only generating excess returns over a benchmark, but to also grow the economies of South Africa and the rest of Africa through listed and unlisted investments.