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PUBLIC INVESTMENT CORPORATION established by Public Investment Corporation Act of 2004

PUBLIC INVESTMENT CORPORATION established by Public Investment Corporation Act of 2004 Presentation to Standing Committee of Finance. Discussion points. Public Investment Corporation Act.

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PUBLIC INVESTMENT CORPORATION established by Public Investment Corporation Act of 2004

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  1. PUBLIC INVESTMENT CORPORATION established by Public Investment Corporation Act of 2004 Presentation to Standing Committee of Finance

  2. Discussion points

  3. Public Investment Corporation Act The PIC is an Asset Manager for all official Sector Funds. Its activities differs from a DFIs such as IDC and DBSA

  4. The PIC Mandate and Key strategic objectives Mandate: The PIC mandate is to invest official public sector funds, including pension funds. The investment mandates are set by clients and the PIC objective is implement the investment mandates. Vision • To meet or exceed our clients' investment objectives and commitments to stakeholders Mission • The PIC – having been established by an Act of Parliament to provide for the investment by the Corporation of certain monies received or held by, for or on behalf of the Government of the Republic and certain bodies, councils, fund and accounts – will: • Deliver investment returns in line with client mandates • Create a working environment that will ensure that the best skills are attracted and retained • Be a beacon of good corporate governance • Contribute positively to South Africa’s development

  5. PIC Top 5 Clients and Assets Under Management UIF and CC has extended their asset allocation to include Socially Responsible Investments (SRI). These investments will target investments with huge social and developmental impact such as job creation, social infrastructure and SMMEs.

  6. PIC Asset Classes – Where we invest in

  7. Evolution of the PIC Strategic Asset Allocation

  8. Broad Investment strategies

  9. PIC Investment activities and alignment to Economic Growth initiatives

  10. Assets under Management Growth

  11. AuM Growth versus SA GDP since 1995 • Economic Growth drives Asset Growth? And the reverse is true • Rule of Thumb:

  12. SA GDP and PIC AuM since 2004 PIC has a significant influence in the economy • Asset Base more than 1/3rd of SA GDP • PIC can make a difference by investing prudently in the economy

  13. The Virtuous Cycle of Economic growth & Assets Growth Economic Growth Asset Growth/Returns Developmental Investments Growth in AuM Investment in Catalysts for Economic Growth There is positive correlation between our investment returns and the performance of the economy Prudent Asset Allocation

  14. Active Investment Approach to stimulate Economic Growth

  15. SA GDP composition detail by ranking(Top 5)

  16. Targeted Sectors to stimulate GDP growth ‘The Smart Approach to Investing”

  17. Developmental Investment Approach For social, economic or environmental impact Where Developmental Investment portfolio will sit Charity, grants, Government transfers Developmental Investment Investor expects only principal returned Development finance institutions Forfinancial return For no financial return Most investments occur here (including the main part of the PIC portfolio) N/A Not for social, economic or environmental impact Proof of the pudding is in the eating….

  18. Developmental Investing for Economic Transformation (DIET) DIRECT= “Developmental Investing for a Radical Economic Transformation”

  19. The GEPF DI, NGP and NDP (the Link) National Development Plan: Sets long term vision for overall economic andocidevelopment in South Africa. Integrates economic, social, demographics, environmental and governance elements into a coherent framework

  20. NGP/NDP Alignment to PIC Developmental Investments

  21. NGP/NDP Alignment to PIC Developmental Investments

  22. NGP/NDP Alignment to PIC Developmental Investments

  23. NGP/NDP Alignment to PIC Developmental Investments

  24. How we deliver...?

  25. Conclusion

  26. Conclusion • We believe that we have a bigger and important role to play in the economy through our investment activities • Our developmental investment strategies are well aligned to government key priorities and most importantly policy of regional integration with the rest of the continent • The goal remains to be the best modern asset manager of choice for all official sector entities both in South Africa and Globally. • Investing for the good cause to the livelihoods of all South Africans and rest of Africans remains our key priorities, while at the same time delivering sustainable long term returns to our clients

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