CAPE TOWN - The Government Employees Pension Fund (GEPF) should invest more in unlisted companies so that it can diversify from the biggest risk to its investments, its oversized exposure to the broader SA economy.
This was the view of GEPF Principle Executive Officer Abel Sithole, who gave a presentation yesterday in Cape Town about an independently done actuarial valuation that showed the fund to be in good health, with it holding R1.08 of assets in 2018 for every R1 that it might need to pay out in terms of benefits in the future.
Sithole’s wish for the GEPF to invest more in unlisted companies is controversial at present, because much of the evidence of the Public Investment Corporation (PIC) Commission has centred around evidence of the possible misallocation of funds by the PIC to unlisted companies, for reasons that might not have based purely on a desire for a good return.
The GEPF is by far the PIC’s biggest client, and to provide an indication of the size of the GEPF, its investments comprise 11-13 percent of the total market capitalisation of the JSE. The fund had accumulated funds and reserves of R1.8 trillion on March 31, 2018.