Page 34 - DPSA_SDR Vol 12 No.2 2019

SOCIAL INVESTMENTS

clear achievement. But it’s important Future possibilities Role in society
to note the empowerment and the
developmental impact of our investment: • The decision by the UK to leave the • GEPF believes that integrating ESG
51% of the shareholding remains in the EU is a cause for optimism. Since factors into its investment policies is
hands of the emerging black farmers it has no citrus industry, there is no material to long-term sustainability.
and their enterprise is run by a board of need for protectionist measures
directors and a management team. The like the EU has and can lead to • GEPF investments should play a
additional revenue and jobs that they opportunities for SA producers. developmental role in the South
are creating will go a long way in fighting African and African economy.
unemployment, poverty and crime in the
area.” SA industry Governance and

Going forward, Sithole emphasises • Agriculture remains an important stakeholder engagement
that the GEPF will continue pursuing sector despite its relatively small
its developmental investment mandate. contribution to the gross domestic • Governance structures support the
The pension fund will continue to look product (GDP). GEPF mission while applying the
for unlisted investment opportunities • South Africa is second largest highest fiduciary standards.
in priority sectors (agriculture, exporter of citrus. About 70% of the • GEPF investment decisions may
manufacturing and tourism) as well as in crop is exported; the rest is sold
economic infrastructure (roads, rail and locally or processed (juice, jam etc). reflect wider stakeholder views,
ports); social infrastructure (affordable provided they are consistent with
housing, health and education); SMMEs • South Africa has been the largest its fiduciary duty to members and
beneficiaries.
across all sectors; and in environmental supplier of fresh oranges to the US
and sustainable areas (green for the last decade. • GEPF’s reputation should be
buildings, renewable energy and clean • Trade statistics for fruit sectors from supported by robust and rational
technology). investment decisions. n
Fresh Fruit Exporter Directory at
Fresh Produce Exporters’ Forum
www.fpefsa.co.za. www.gepf.gov.za
SWEET SUCCESS
GEPF Investment
from R14,5 million in 2016 to R38 million philosophy & strategy
in 2017

The product • The investment strategy considers
the fund’s risk profile, assets and
liabilities.
• Valencia oranges – their distinctive
bright colour and sweet taste make • Taking well-considered risks is
them one of the most popular necessary to earn the returns
oranges in the world. required to meet the pension
obligations.
Joint effort • The fund’s strategic asset allocation
is the key determinant of portfolio
risk and return.
• Mabunda Citrus is owned by 30
independent farmers (51%). They • The GEPF believes in a combination
enjoy the support and involvement of active and passive management.
of the surrounding community. Lona
Group owns 49%. Risk management

Outside investment • Appropriate risk management
processes ensure sustainability over
• Government Employees’ Pension the long term.
Fund (GEPF), through its asset
manager Public Investment • Risk must be considered at
Corporation (PIC). investment, asset class and portfolio
levels.
Expertise • Societal inequality has a negative
effect on the economic system and
• Lona Group provides expert advice society.
on marketing and farming practices.
More info at www.lona.co.za

32 SERVICE DELIVERY REVIEW | Volume 12 No.2 of 2019