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. But 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. Measured against an MSCI RE benchmark adjusted for the PIC’s client mix, the unlisted property segment 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.
Dlamini’s remarks came after a turbulent July, when Deputy Finance Minister David Masondo placed him on precautionary suspension following unsubstantiated whistleblower claims of wrongdoing over a R430 million transaction with a firm called Acapulco and alleged conflicts of interest involving Lanseria International Airport. Dlamini overturned the suspension in court and was reinstated, after which Finance Minister Enoch Godongwana forced the board, led by Masondo, to resign.
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.
Read more about similar developments in the Markets & Finance section.
