GEPF outlines investment strategy

The Government Employees Pension Fund (GEPF), the largest pension fund in Africa, is experiencing a prosperous year in terms of investments in 2018. Abel Sithole, the Principal Executive Officer of GEPF, recently discussed the fund's current investment climate and where it is finding value in an interview with CNBC Africa. Sithole highlighted that the fund's returns have seen a significant improvement compared to the previous year, with returns almost doubling to nearly double digits. This positive performance is attributed to the favorable investment climate that is not only benefiting GEPF but also other funds in the market. Sithole delved into the specific investments that are driving this improved performance for GEPF, emphasizing the fund's investment focus on the South African economy. He noted that companies such as Naspers and other key players in the financial services sector have been standout performers, contributing significantly to GEPF's positive returns. Moreover, investments in Africa, particularly in West Africa and Nigeria, have also shown promising results. Sithole highlighted the challenges faced by the Nigerian economy in the past, which negatively impacted GEPF's performance, but expressed optimism about the recent improvements in the region. Looking ahead, Sithole expressed GEPF's intentions to further expand its investments on the continent, albeit cautiously. The fund aims to diversify its portfolio beyond West Africa and East Africa, with a keen interest in exploring opportunities in North Africa and neighboring countries in the SADC region. When considering sectors for potential investment, Sithole indicated a preference for industries that are relatively untapped and show growth potential. This includes sectors such as financial services, where embracing new technologies like fintech can be particularly beneficial. Additionally, Sithole highlighted the attractiveness of sectors like construction and infrastructure development in Africa, which offer ample opportunities for South African investors. Overall, GEPF's investment strategy focuses on leveraging the favorable investment climate to drive growth and diversification, both within South Africa and across the African continent. With a cautious yet optimistic outlook, the fund aims to capitalize on emerging opportunities in key sectors, paving the way for continued success in the ever-evolving investment landscape.