The Public Investment Corporation (PIC) is a South African state-owned entity (SOC ) with R2.548 trillion (USD 148 Billion) of assets under management as of 31 March 2022. It is Africa's largest asset manager. Established in 1911, it holds large stakes in several South African companies, and is one of the entities through which the government implements its policy of Broad-Based Black Economic Empowerment. The PIC is also responsible for investing in the South African Government Employees Pension Fund (GEPF).

History

The organisation has its origins in 1911, with the passing of the Public Debt Commissioners Act of 1911, a year after the formation of the Union of South Africa. Known then as the Public Debt Commissioners, it would manage the government's debt, investing the government and South African Railways and Harbours trust funds and by 1924 had taken on the provincial administrators funds as well. By the mid-1920s it would manage the granting of loans to local governments in the country. The Pension funds managed by the government would allow the government to borrow against those funds. In 1984, a new act, the Public Investment Commissioners Act No.45 of 1984, moved its focus from debt to investment management, investing funds on behalf of government organisations, the appointment of commissioners and the finance minister as its chairman. With the first free election in South Africa in 1994, the Public Investment Commissioners announced the formation of the Isibaya Fund in 1995. This saw a portion of the money managed diverted to the new fund to invest in Socially Responsible Investments to target economic growth transformations in population groups disadvantaged during apartheid. The next change came in 2004 with a new act passed called the Public Investment Corporation Act of 2004, where the Public Investment Commission became legalised corporate asset managers. Now a client's specific investment objectives would be expresses in a detailed client investment mandate which are individually negotiated with a client concerned and approved by the Financial Services Board.

Governance

The current chairman is also the South African Deputy Minister of Finance and was appointed by the Minister of Finance. The chairman is a government member mainly due to the high percentage of government pension funds under management by the Public Investment Corporation. All other directors are also appointed by Minister of Finance.

PIC clients and share of total assets under management

The following figures shows the share of the total assets under management by PIC from each public institution in South Africa as of 31 March 2022:

Funds held under management

The total assets held under management by the Public Investment Corporation as at 31 March each year are: ! Date (31 Mar) !! Total funds (trillions) ! % Change!! Notes

Investments

As a long-term investor, the Public Investment Corporation sets its objective as one to achieve returns higher than the clients have benchmarked and is spread amongst four investments areas: