SOUTH AFRICA - The R220bn (US$23.9bn) Government Employees Pension Fund (GEPF) is currently reviewing its investment strategy and may put more mandates out to tender.
Pension fund head Francious Le Roux said the GEPF has maintained the same investment policy since 1996 and now the interim trusteeship of finance minister Trevor Manuel is considering other options for the fund. Le Roux explained that foreign investment is a subject of ongoing discussion, adding that it would be correct to invest more of the fund in offshore equities.
Although no final date for the outcome of the review has been confirmed, Le Roux said an update should be available within the next six to eight weeks.
The Public Investment Commissioners, the company managing the fund, is still expecting a directive from the GEPF to put out to tender the fund’s R60bn (US$6.5bn) domestic equity portfolio.
The active mandate for the GEPF is currently managed by Old Mutual Asset Managers, Liberty Asset Management, RMB Asset Management and Gensec Asset Management.
The fund is invested in South African equities (32.8%), bonds (50.7%), money market and cash (9.5%), property (0.5%) and international equities and other assets (6.5%).
The GEPF is advised by financial services company NBC.
By Janet Du Chenne
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