The Public Investment Corporation (PIC), Africa’s largest asset manager, lost more than R300bn in assets within about a month of the US and Israel launching strikes on Iran in late February. The fall ended the state investor’s run towards R4trn under management.
In annual results released on Wednesday, the PIC said its assets had reached R3.958trn by February. After the slide, it closed its financial year on 31 March at about R3.66trn. That was still about R608bn, or 19.9%, higher than a year earlier, but growth would have been close to R1trn without the sell-off.
Chief executive Patrick Dlamini said South African listed equities were the best-performing asset class over the year. He linked the gains to stronger investor sentiment, political stability and reform commitments after the Government of National Unity was formed following the 2024 election.
| Measure | Figure |
|---|---|
| PIC assets, February 2026 peak | R3.958trn |
| PIC assets, 31 March 2026 | About R3.66trn (up 19.9%) |
| GEPF assets | R3.24trn (up 20.24%) |
| UIF portfolio | R195bn (up 14.71%) |
| PIC net profit | R869m (up 70%) |
| JSE all share index | About 129,000 before war; now just under 110,000 |
| Corporate plan target | R4.2trn within two years |
The conflict began on 28 February with strikes that killed Iran’s supreme leader, Ayatollah Ali Khamenei. The JSE all share index had set a record of about 129,000 points before the war and has since fallen to just under 110,000, a decline of about 15%. Business Day put the value lost on the JSE since March at more than R3trn.
The PIC, the JSE’s biggest investor, was exposed through large holdings in resources and banking shares. Resources stocks fell 15% in March, with platinum miners among the hardest hit, and the PIC holds major stakes in Sibanye-Stillwater, Northam, Valterra and Impala Platinum. In May, Dlamini told Parliament’s finance committee that four weeks of war had cut assets by almost R350bn. The loss set back the PIC’s corporate plan target of R4.2trn within two years.
The Government Employees Pension Fund (GEPF), the PIC’s main client, saw its assets rise 20.24% to R3.24trn, or 88.7% of the total. The GEPF has more than 1.2m active members and over 500,000 pensioners and beneficiaries. The Unemployment Insurance Fund’s portfolio grew 14.71% to R195bn, and the PIC also manages money for the Compensation Commissioner Fund. The PIC’s own net profit rose 70% to R869m.
The PIC expects its domestic equity and property portfolios to stay under pressure in the current financial year. Dlamini said the outlook was uncertain and that the risks lean to the downside. He named global energy prices, the rand and domestic inflation as the main factors to watch.
The results follow a period of upheaval at the top of the PIC. A new board was appointed in late July, and in early August a court set aside Dlamini’s suspension by the former board. On Wednesday, Finance Minister Enoch Godongwana ruled out scrapping the PIC’s unlisted investments.