Overly critical of PIC role

Magda Wierzycka is overly critical of the role of the Public Investment Corporation (PIC) in managing the savings of government employees.

First, the unrealised losses mentioned are targeted towards black-owned investments, while the verified fraudsters (Steinhoff et al) are let off scot-free. It should also be noted that the PIC was a large shareholder in Steinhoff due to the size of its portfolio, which is designed to track the South African equity market. Any publicist of passive investment would know better.

Second, the PIC has single-handedly played a role in transforming the South African fund management sector. Its incubation programme has yielded superb results, demonstrating that black fund managers are also capable of delivering consistent returns.

Compare that to the established pale and male-dominated fund managers and one notices that other than marketing and administrative staff (or even the odd CEO), those who earn the big bucks (money managers) are hardly transformed.

Finally, the argument about tax revenue and keeping the PIC’s passive offshore investments local only stems from an entitlement culture. I’m certain that the credentials, experience and value for money (fees) of this offshore manager dwarf the capabilities of our local passive managers. Unless, of course, the ultimate objective is to get a few more snouts into the PIC’s passive trough!

Ismael Nzimande Johannesburg