The Government Employees Pension Fund (GEPF), posting its financial results for the year ended March 31, 2023, said its investment portfolio recorded growth of 1.2% to a market value of R2.32 trillion – the largest in its history.
GEPF said this was as its investment strategies continued to protect the fund’s assets amid a poor-performing South African and global economy and as the financial year 2022/23 was a challenging year for investors around the world.
Net investment income for the year amounted to R82.2 billion, derived largely from dividend income of R56bn, interest income of R56.7bn and net profit on sale of investments of R22.2bn.
“The positive performance can be primarily attributed to the positive performance of bonds and the depreciation of the local currency. The GEPF’s 10-year annualised return was 6.65%, illustrating financial stability with a funding level of 110.1%,” it said.
The fund remains cash flow positive with R53bn as of March 31, 2023, largely attributable to benefits paid of R137bn, net investment income received of R107bn and contributions received of R83bn.
Accumulated funds and reserves grew at an average annual rate of 6.65% for the 10-year period 2014–2023.
The GEPF revised the mandate agreement with the Public Investment Corporation (PIC) for listed and unlisted investments during the 2021/22 reporting period to strengthen governance over the execution of the investment strategy by the PIC, create a more harmonious legal framework, improve the focus and implementation of investment guidelines, and introduce accountability mechanisms in case of poor investment decisions.
BUSINESS REPORT