According to MoneyWeb, Patrick Dlamini was reinstated as chief executive officer of the Public Investment Corporation (PIC) after a court set aside his three-week suspension, and used the company’s annual results presentation on Wednesday to stress that the R3.66 trillion it manages is not a pot for misuse.
Dlamini told the room in Sandton, Johannesburg, “the trillions of rands may seem unreal to most South Africans. Every rand has a name, every rand has a job to do. These rands do not belong to the PIC; they belong to South Africans that have worked to build this country.” The statement frames the asset manager’s mandate to protect the retirement savings of more than one million current and former public servants.
The PIC is a state-owned firm that invests on behalf of the Government Employees Pension Fund (GEPF), the Unemployment Insurance Fund and the Compensation Fund. Its goal is to generate returns that enable the GEPF to meet pension obligations. The organisation’s annual report shows total assets under management grew by 19.94%, an increase of R608 billion, to R3.66 trillion at 31 March 2026.
Market turbulence has weighed on the portfolio. Acting chief investment officer August van Heerden said the sell-off triggered by the war in Iran erased roughly R400 billion of value. About 47.1% of the portfolio is exposed to the Johannesburg Stock Exchange and local equities; the remainder is split among local bonds, cash, property (both listed and unlisted), offshore equity and bonds, and other asset classes.
The five largest clients, led by the GEPF, missed their three-year benchmark, delivering an annualised return of 15.04% against a target of 15.28%, a shortfall of 0.24 percentage points. Dlamini attributed the gap to the GEPF’s shift from local equities to global managers, which left the portfolio temporarily overweight in low-earning cash and underweight in South African shares.
Performance in the unlisted portfolio also fell short of expectations. The fund, which excludes property, was expected to earn at least 6.95% but posted a negative 0.2% return. When assets that have already been sold are included, the portfolio generated R1.23 for every R1 invested. The unlisted property segment, measured against an MSCI RE benchmark adjusted for the PIC’s client mix, underperformed that benchmark by five percentage points over a 36-month period.
The Auditor-General of South Africa identified two material irregularities that could result in financial losses, though the exact amount was not disclosed in the source. Dlamini said the PIC is working “flat out” to turn distressed assets around and will take appropriate action when a capable buyer is found.
For the millions of South Africans whose pensions are tied to the PIC, including many small-business owners and employees, the stewardship of these funds is a direct concern. A misstep at the PIC can translate into lower retirement payouts, while solid governance and performance help preserve the purchasing power of future retirees. The episode also underscores the importance of transparent oversight for state-owned investment vehicles.
Read more about similar developments in the Markets & Finance section.
Dlamini’s remarks came after a turbulent July when Deputy Finance Minister David Masondo placed him on precautionary suspension over an alleged R430 million deal with Acapulco and possible conflicts tied to Lanseria International Airport. The whistle-blower claim was later deemed unsubstantiated, and a court set aside the suspension, prompting Finance Minister Enoch Godongwana to force the board’s resignation. This episode has kept the PIC under intense public scrutiny, with Masondo himself stepping down as chair. The episode illustrates how political oversight can intersect with investment decisions, especially when large-scale transactions attract media attention.
The PIC’s unlisted portfolio, which includes the Isibaya Fund aimed at black-owned businesses, recorded a negative 0.2 % return, falling short of the 6.95 % target. When sold assets are factored in, the portfolio generated R1.23 for every R1 invested, showing that disposals can offset write-downs. The fund’s performance is measured against an MSCI RE benchmark adjusted for client mix, and it lagged that benchmark by five percentage points over 36 months. These figures highlight the challenge of balancing transformation mandates with the need for consistent returns across both listed and unlisted holdings.
Turning distressed assets around follows a structured process: the PIC first identifies underperforming holdings, then seeks capable buyers or restructuring partners. Dlamini has said the organisation is “working flat out” to rescue such assets, and that appropriate action will be taken once a suitable purchaser is found. This approach aligns with the Auditor-General’s identification of material irregularities, ensuring that any potential losses are mitigated through active asset management rather than passive holding.
Looking ahead, the PIC will continue to monitor market volatility, especially given the R400 billion erosion linked to the Iran-related sell-off. With roughly 47.1 % of its portfolio exposed to the JSE, any further turbulence could affect overall performance. The firm’s mandate remains to safeguard the retirement savings of over one million public servants, meaning that future asset allocations will likely be adjusted to balance local equity exposure with cash and offshore positions, aiming to meet the GEPF’s benchmark targets.
