GEPF investment value climbs on post-COVID economic stability

The Government Employees Pension Fund (GEPF) released its 2022 annual results, showcasing a remarkable 9.6 percent growth in its investment portfolio to a whopping R2.29 trillion. This significant increase is attributed to the stability in the economy post the COVID-19 pandemic. Musa Mabesa, Principal Executive Officer of the GEPF, shed light on the factors driving this growth in a recent interview with CNBC Africa. The pension fund's success can be mainly attributed to a broad-based performance across various sectors. Listed equities contributed about 12 percent to the fund's growth, while the bond portfolio added a significant 6 percent. Additionally, properties in the listed portfolio experienced a notable comeback, further bolstering the fund's performance. This diverse and inclusive growth pattern speaks volumes about the fund's confidence in both the local and global economies. Mabesa emphasized that the GEPF follows a long-term investment approach based on liability-driven strategies. With over 50% of its portfolio allocated to equities, around 30% to bonds, and a portion to cash holdings, the fund's strategic asset allocation remains consistent. Any adjustments made to these allocations are done within specified parameters to ensure stability and minimize negative impacts on the economy. In terms of the energy sector, the GEPF has shown a strong commitment to renewable energy projects. With investments exceeding R10 billion in this space, the fund continues to seek opportunities that align with the transition towards cleaner energy sources. Mabesa highlighted the importance of managing this shift responsibly to mitigate any adverse effects on communities and economies. In addition to renewables, the fund also maintains overweight positions in the transport and telecom sectors. While these sectors play crucial roles in the country's supply chains and overall economic sustainability, efforts are being made to reduce these overweight positions responsibly. By monitoring and adjusting these allocations prudently, the GEPF aims to support sectors that are vital for the country's growth and stability. As the fund continues to uphold its commitment to responsible investment practices and ESG policies, it remains dedicated to seeking valuable opportunities that align with its long-term investment objectives. With a clear focus on sustainable growth and strategic asset allocation, the GEPF's robust performance underscores its position as a key player in the pension fund landscape, driving positive economic outcomes and sustainable development.