Top 15 investments by Public Investment Corporation – Africa’s largest asset manager

At a Glance

• Public Investment Corporation (PIC) manages R2.7 trillion, leading Africa’s investment with diverse holdings across equities, fixed income, and real estate.
• PIC’s portfolio includes top companies like Clicks and Pepkor, driving economic growth and ensuring sustainable returns in Africa.
• With 80% of investments in listed equities, PIC balances passive and active strategies, focusing on efficiency and impactful growth.

Public Investment Corporation (PIC), established in 1911, is Africa’s largest asset manager based in Pretoria and a cornerstone of South Africa’s financial landscape.Â

Owned entirely by the South African government, the PIC operates under the stewardship of the Minister of Finance and manages assets worth an impressive R2.693 trillion ($144.77 billion) as of March 31, 2024 —reflecting year-on-year growth of 3.6 percent. By September 2024, its Assets under management exceeded R3 billion($180 million).

With a long-standing legacy of investment management, the PIC has played a crucial role in South Africa’s economic development while maintaining a diversified portfolio that spans listed equities, fixed income, and externally managed funds.

Listed investment portfolio

The PIC’s Listed Investment Portfolio represents approximately 80 percent of its total assets under management (AUM), making it the backbone of its investment strategy.

Within this portfolio, 80 percent of the listed equities are managed internally, leveraging cost-efficient, enhanced index strategies to deliver optimal performance.

The remaining 20 percent is entrusted to external managers, allowing for active asset management and a focus on maximizing client returns.

The portfolio includes equities in sectors like healthcare, retail, and industrials, reflecting a balanced approach to risk and opportunity.

Notably, the PIC is the largest institutional investor on the Johannesburg Stock Exchange (JSE), controlling over 10 percent of its market capitalization.

Furthermore, up to 10 percent of its AUM is invested outside South Africa, with 5 percent allocated to offshore equities and the remainder across the African continent. This diversified approach underscores the PIC’s commitment to both domestic and pan-African economic growth.

The PIC’s investment strategy emphasizes both returns and social responsibility, aligning with broader goals of sustainable growth and development.Â

Shore Africa delves into the PIC’s top 15 investments, exploring the entities that have shaped its portfolio and contributed to its stature as a financial giant in Africa.

The PIC’s top 15 investments span a variety of industries, highlighting its strategic focus on high-performing sectors:

1. Clicks Group Limited: Holding 17.9 percent of Clicks Group’s shares, valued at R16.29 billion ($877.42 million), PIC’s investment underscores its confidence in South Africa’s healthcare and retail sectors. Clicks’ strong market presence and consistent growth make it a cornerstone of the portfolio.
2. Pepkor Holdings Limited: With an 8.51 percent stake worth R9.19 billion ($495.41 million), PIC supports Pepkor’s extensive retail network, which caters to millions of customers across Africa.
   
3. Tiger Brands Limited: A 15.53 percent stake in this food and beverage giant amounts to R8.2 billion ($441.77 million), reflecting the PIC’s focus on consumer staples and Africa’s growing food demand.
   
4. Sappi Limited: As a leader in global pulp and paper production, Sappi forms 22.57 percent of PIC’s holdings, valued at R6.6 billion ($355.5 million).
   
5. Life Healthcare Group Holdings Ltd: Holding 23.81 percent of shares, equivalent to R5.8 billion ($312.66 million), PIC demonstrates its commitment to healthcare sector resilience.
   
6. Netcare Limited: A 25.93 percent stake valued at R5.71 billion ($307.59 million) reflects PIC’s strategy of investing in private healthcare infrastructure.
   
7. Redefine Properties Limited: With 16.82 percent ownership worth R5.57 billion ($300.51 million), PIC plays a vital role in the real estate sector.
   
8. Barloworld Limited: A stake of 18.15 percent, valued at R3.78 billion ($203.5 million), highlights its focus on industrial and equipment services led by Dominic Sewela.
   
9. Coronation Fund Managers Limited: At 14.89 percent, this R2.22 billion ($119.72 million) holding emphasizes the importance of asset management in the PIC’s portfolio.
   
10. Astral Foods Limited: PIC’s 19.85 percent shareholding, valued at R1.63 billion ($87.58 million), showcases its investment in agriculture and food production.
    
11. Kaap agri limited:PIC’s 2.54 percent shareholding, valued at R962.66 million ($51.86 million), showcases its investment in agriculture and food production.
    
12. Fairvest Limited:Holding 9.98 percent of shares, valued at R827.16 million ($44.59 million), this investment strengthens PIC’s diversified real estate assets.
    
13. Cashbuild Limited:With a 16.09 percent stake also valued at R827.16 million ($44.59 million), PIC supports growth in retail building materials.
    
14. Dipula Income Fund Ltd:At 16.59 percent, worth R792.87 million ($42.75 million), this holding underscores PIC’s focus on income-generating real estate.
    
15. Hudaco Industries Limited:A 10.79 percent stake valued at R678.57 million ($36.56 million), showcasing PIC’s interest in industrial and consumer-related sectors.

Opportunities and challenges

The PIC’s success is rooted in its ability to navigate Africa’s complex investment landscape. Opportunities abound in sectors like infrastructure development, technology, and renewable energy, presenting pathways for sustained growth. However, challenges such as regulatory frameworks, market volatility, and geopolitical risks remain key considerations.

The PIC’s commitment to innovation, social responsibility, and active stakeholder engagement will be crucial in addressing these challenges. By fostering partnerships and leveraging its robust portfolio, the PIC is well-positioned to continue driving economic development in South Africa and beyond.

The PIC’s top 15 investments highlight its strategic approach to managing Africa’s largest asset portfolio. From retail to healthcare, its diversified holdings not only generate substantial returns but also contribute to broader socioeconomic objectives. As Africa’s financial landscape evolves, the PIC’s leadership and vision will remain instrumental in shaping the continent’s economic future.