This news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.
BL Premium reports that the new principal executive officer of the Government Employees Pension Fund (GEPF), Musa Mabesa, has concluded deliberations with the National Treasury and Finance Minister Tito Mboweni that can open the door to revisions in how the fund invests the nearly R2-trillion entrusted to it by the nation’s public servants.
Mabesa succeeded Abel Sithole, who has taken the reins at the Public Investment Corporation (PIC). He indicated last week: “We have finalised consultations with the Treasury on the outcome of the asset-liability modelling we undertook of the fund, which our board is reviewing. The next step, over a period of time, will be to align the strategic asset allocation to match the liability profile of the fund.” The strategic asset allocation determines how the GEPF allocates money to asset classes locally and offshore and has major implications not only for fund, but also for the growth prospects of the local economy. Since its creation in 1996, the fund has overwhelmingly invested in local assets including equities, fixed income instruments, and property. The fund only has a 6% (out of an allowable 9%) exposure to investments outside the continent. Sithole previously indicated that the fund’s overwhelming exposure to the local economy was sub-optimal, as has been evinced in recent years by lacklustre economic growth and diminished returns. This had expedited the need for the fund to diversify its investments and generate returns uncorrelated with the local economy and equity market. But, Mabesa did not care to elaborate on what, if any, changes would be made to the strategic asset allocation.
- Read the full original of the report in the above regard by Warren Thompson at BusinessLive (paywall access only)
Get other news reports at the SA Labour News home page