State-owned asset manager the Public Investment Corporation’s (PIC’s) assets under management (AuM) for the financial year ended March 31 grew by almost R440-billion, from R1.9-trillion in the previous year, to R2.34-trillion.
The PIC tabled its integrated yearly report before Parliament on September 29, in line with legislative requirements.
The report shows that all its clients’ portfolios showed positive growth, except for the Unemployment Insurance Fund (UIF).
In this regard, the portfolio of the Government Employees Pension Fund, the PIC’s biggest client, constituting 89% of AuM, grew by 28% to R2.09-trillion, in line with the recovery in domestic and global markets.
The UIF portfolio, the PIC’s second largest client with 5% of AuM, declined by 24% to R115-billion, owing to withdrawals by the fund to meet the requirements of the Covid-19 Temporary Employee/Employer Relief Scheme.
Two of the Compensation Commissioner Funds also had their portfolios grow.
The Compensation Commissioner Fund’s assets grew by 21% over the reporting period to more than R47-billion; and the Compensation Commissioner Pensions Fund grew by 27% to more than R34-billion.
Unlisted investments and unlisted properties saw additional impairments for the 2020/21 period and value reductions.
The PIC says the growing list of impairments is largely attributable to external factors related to adverse domestic economic environments.
The PIC continues to implement the recommendations of the Mpati Commission of Inquiry. To this end, the board is leading the implementation with the help of an advisory panel.
With this assistance, the board is crystallising those aspects of the commission’s recommendations that merit forensic investigation.
Moreover, the PIC says it is working closely with law enforcement agencies to ensure those implicated have their day in court.
As part of addressing some of the commission’s findings, the board has approved the Anti-fraud and Corruption Policy, an investigation model and changes to the operating models.
It has also embarked on an enterprise-wide review of all polices and processes and this work continues to ensure alignment with the envisaged operating model.