PIC snipes at critics over investments

The Public Investment Corporation (PIC) says its critics are focusing on a few underperforming investments, instead of highlighting the returns it has generated for clients.

The PIC, Africa’s largest asset manager, has funds under management of about R2.1-trillion, which it invests on behalf of the Government Employees Pension Fund (GEPF), the Unemployment Insurance Fund and the Compensation Fund.

The corporation came under fire recently for the investment it was about to make in Iqbal Surve’s Sagarmatha Technologies, which it aborted at the 11th-hour, as well as the investments it has made over a number of years in Ayo Technology Solutions (29% for R4-billion).

It is also invested in VBS Mutual Bank, which is now under curatorship, to the tune of R108-million in equity plus a R350-million revolving credit facility.

In a statement in midweek the PIC rebutted its critics by pointing to the fact that its listed equity portfolio (about 70% of the total) had consistently outperformed the JSE Swix all-share index (ALSI).

“The recent media focus has almost exclusively been on a small number of underperforming investments and it seems the intention is to drive a message that funds under the PIC’s management are at a danger of being eroded or that the PIC has underperformed as an asset manager. Neither is correct,” PIC spokesman Sekgoela Sekgoela said.

Sekgoela also denied that it had played any role in engineering the collapse of VBS.

He said the PIC planned to oppose the high court application by United Democratic Movement leader Bantu Holomisa for the suspension of its chief executive, Dan Matjila, ahead of a disciplinary process.

Earlier in July Holomisa brought an urgent application in the High Court in Pretoria for the suspension of Matjila, who has strongly denied allegations that were probed by the PIC board.