GEPF bemoans mandatory high exposure to JSE
Government Employees Pension Fund seeks to diversify its offshore investments to more than the current 10%
The fund responsible for managing R1.8-trillion of government workers’ pensions says the worst performance by the JSE in a decade knocked its investment returns in the year ended March 2019. The Government Employees Pension Fund (GEPF), which is seeking permission from the National Treasury to increase its allocation to offshore investments, said it will report a drop in its investment performance for the first time in four years after increasing investment returns from 4% in 2016 to 8.5% in 2018. The GEPF’s principal officer, Abel Sithole, said the fund was still in discussion with the Treasury and the two parties have not reached an agreement on whether it can take more assets offshore. Having more assets invested outside of SA might have insulated the GEPF from the JSE losses but not much from markets’ performance point of view as the the MSCI world index also closed the year down 8.7%, while the Dow Jones Industrial also fell 3.5%. Nevertheless, Sithole said more offshore expo...
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