GEPF exceeds R2tn market value goal

The Government Employees Pension Fund (GEPF) has achieved a significant milestone by exceeding its target of a market value of 2 trillion Rand since its inception. The news comes as Africa's largest pension fund reports a remarkable 23.1% return on investment, marking a significant rebound from the challenges posed by the COVID-19 pandemic. Musa Mabesa, Principal Executive Officer of the GEPF, discussed the fund's performance and strategy in an exclusive interview with CNBC Africa. The fund's recovery from the initial setback experienced in the first quarter of the fiscal year was notable, with assets under management nearing 2.1 trillion Rand and net investment income surpassing 450 billion Rand. The stellar performance was primarily driven by the robust growth of listed equities and domestic bonds markets, which together accounted for almost 80% of the total assets. Mabesa highlighted the fund's portfolio structure, with close to 50% of assets allocated to listed equities and nearly 30% in bonds, with the rest diversified across various investment avenues. While the property portfolio faced challenges due to the impact of COVID-19, Mabesa emphasized the fund's conservative approach to valuations and expressed optimism about the sector's future prospects. The fund remains focused on long-term investments and believes in the potential for property assets to rebound in the future. In terms of investment performance, Mabesa provided insights into the listed space, noting impairments that were lower compared to the previous year. The fund's strategies, in collaboration with asset managers and investing companies, have helped mitigate challenges and facilitate a turnaround in certain businesses. Addressing concerns about members accessing pension funds prematurely, Mabesa underscored the fund's commitment to educating members on the importance of saving for retirement and safeguarding their financial future. He emphasized the need to uphold the defined benefit fund structure, which guarantees benefits for pensioners and their beneficiaries. Regarding the fund's investment policy and oversight, Mabesa emphasized the importance of robust mandates to align with the fund's intentions while ensuring effective controls to mitigate risks and protect the fund's reputation. He dismissed speculations about moving funds from the Public Investment Corporation (PIC) and confirmed that the existing fee agreements with the PIC would remain unchanged. Looking ahead, Mabesa shared the fund's commitment to investing in Africa, allocating over 5% of assets for projects in the continent. He stressed the importance of identifying bankable projects for sustainable investment growth. The GEPF remains dedicated to exploring investment opportunities in Africa, particularly in infrastructure development, recognizing the continent's potential for growth and opportunity. As the fund continues to navigate the evolving investment landscape, its focus on sustainable growth and prudent investment strategies positions it well for future success.