SA economy a concern

A man holds new South African banknotes at the value of ten, twenty, fifty, one hundred and two hundred South African Rand depicting former South African president Nelson Mandela at The South African Reserve Bank (SARB) on July 13, 2018 in Pretoria, South Africa. The South African Reserve Bank in celebration of the centenary of Mandela's birth launched its first commemorative banknote series. The larger than normal notes, namely the R10, R20, R50, R100 and R200, depict Mandela's historical journey from his birthplace to his last days. / AFP PHOTO / Phill Magakoe

Despite South Africa’s slow local economic growth, the Government Employees Pension Fund (GEPF), which invests over 90 percent of its assets in the country, said it is not in a rush to increase its exposure to international markets.

Africa’s largest pension fund, which manages R1,8 trillion in pension savings of state workers, released its annual report for the financial year to the end of March. The GEPF recorded sharp declines in returns from its domestic equities (JSE-listed shares) and bonds, which account for over 80 percent of its asset allocation in its investment portfolio. Meanwhile, returns on local bonds were 3,5 percent as at March 2019 compared with 16,1 percent as at March 2018. On the other hand, the GEPF’s offshore investments — mainly global equities and bonds — saw returns of 26,28 percent and 19,39 percent respectively, which were “enhanced” by the rand’s depreciation against the US dollar. — Moneyweb.