Term:PUBLIC INVESTMENT CORPORATION [PIC]

The Public Investment Corporation (PIC) manages the largest fund in South Africa which is the pensions contributions of the millions of public servants in this country. It is also the largest asset manager on the African continent. At year end on 31st March 2018, the CEO of the PIC, Dan Matjila, told parliament that the PIC had a total of R2,084 trillion under management of which about 46,3% was in the listed share market, 33,2% in bonds 5,3% in cash and 2.9% in property. 4,4% is invested in international listed equities and about 1% in international bonds. During the year the corporation made a profit of R417m, down from the previous year’s R532m – largely because of impairing its R82,3m investment in Bophelo Insurance to zero. Bophelo had a significant exposure to the infamous VBS Mutual bank.   If you click on the “Company Comment” icon in the ShareFriend software (the “speech bubble” icon, third from the left at the top of the screen on any chart), you will see a section under the heading “Major Shareholders”, and usually one of the largest shareholders will be the Government Employees Pension Fund (GEPF) which is an investment of the PIC made on behalf of the civil servants. For example, Standard Bank is owned 12,3% by the GEPF and Bidvest is owned 15,16% by them. The PIC generally keeps more than R100bn in cash.

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