GEPF assets lose 11.4% in value over pandemic
THE GOVERNMENT Employees Pension Fund (GEPF) asset market value fell 11.4 percent to R1.64 trillion in the year to March 2020 due mainly to the losses incurred as a result of the impact of Covid-19, the credit ratings downgrade and the low growth environment.
The annual report released yesterday showed dividend income at R34.1bn, interest income of R52.3bn, property income of R1.8bn, while contributions received came to R80.2bn.
Benefits paid to members upon resignation, retirement, or death was R111bn, an R8.4bn increase over the previous financial year.
This was mainly due to a rise in pension payments, which was driven in turn by the 5.2 percent monthly increase granted to pensions and a 3.1 percent rise in the number of pensioners.
As at March 31, the investment portfolio value had fallen by R243bn from the turmoil in the local and global economy in the last quarter of the financial year.
However, due to the “resilience of the GEPF investment strategy”, the losses had recovered and the unaudited value was currently R1.9trln.
“The recouping of losses indicates that the GEPF remains financially sound, despite the tough economic conditions,” the fund said.
“The economic climate in the three months leading to March 31 was extremely turbulent.”
Much of the decline in the fund’s market value was due to the performance of local equities, capital markets and listed property.
The decline in international asset classes was offset by the decline in the value of the rand against the dollar.
The overall Investment performance reflected income of R168.4bn.