The value of assets managed by South Africa’s state-owned pension fund rose by 8.6 percent. Photo: Bloomberg

DURBAN – The value of assets managed by South Africa’s state-owned pension fund rose by 8.6 percent in the year to March 2018, supported by a diversified investment strategy, the fund said in its latest annual report on Monday.

The Public Investment Corporation (PIC), which manages pensions of civil servants and is Africa’s biggest pension fund, said assets under its custody grew to R2.08 trillion from R1.91 trillion rand the year before.

“Through prudent investment decision-making, underpinned by diversification, robust investment process… the PIC portfolio performed brilliantly in the midst of domestic and global economic and political challenges,” Chief Executive Dan Matjila said in the report.

During the year, R9.5 billion was approved for impact investments, which provide capital to address social and environmental issues, R5.8bn rand for unlisted properties and R3.25bn for investing in private equity and structured investment products, the report showed.

In August, President Cyril Ramaphosa agreed to set up a commission of inquiry into the alleged shortcomings at the PIC as ordered by the treasury in July.