The Government Employees Pension Fund (GEPF) has raised concerns about the ongoing volatility in the global economy and the potential impact on investments it makes on behalf of its members.
This comes as global uncertainty is at an all-time high amid deepening geopolitical tensions and trade wars following widespread tariffs imposed by the United States (US).
The GEPF has R 2.38 trillion worth of assets under its management.
The fund manages pensions of close to 1.3 million government employees and just over 500 000 pensioners and beneficiaries.
It paid just over R140 billion in benefits in the 2023/24 financial year and received R92 billion in contributions.
GEPF Principal Executive Officer Musa Mabesa says the fund which invests through the Public Investment Corporation (PIC) is keeping a close eye on global developments.
Mabesa says, “The GEPF operates in a global economy and any movements be it political, economic have a big impact on investments. I mentioned earlier that we are a long-term investor. We do pay attention to these things.”
He says, “We are concerned about the impact that they have on the fund and the value of its assets, and the performance of its assets, linked to that is global inflation, how high global inflation is, as well as the impact of interest rates in the economy and most recently the impact of the tariffs and the instability that it is causing, that also has an impact and the GEPF is watching closely.”
Mabesa dismissed any suggestions that members’ pension funds could be used to fund government spending.
He says, “The GEPF is a pension fund in terms of the government’s employee pension law – so there is no mechanism for the GEPF to fund the fiscus so any misconception about being at risk of funding the fiscus are refuted.”
Mabesa says, “The GEPF with the employer being the employer – departments they play their role to ensure that we safeguard the retirement savings of our members and pensioners and we do not fund programmes that are not within the investment objective of the GEPF, we’ll continue to invest the GEPF’s funds in a responsible manner.”
He says the fund’s focus of gaining investment returns for members is balanced with a developmental agenda to invest in social infrastructure, sustainable projects, and small and medium enterprises.
