South African state investor PIC benefits from mining stock rally, green bets slump
South African state investor Public Investment Corporation (PIC) reported a 22.5% increase in its listed equities portfolio to R999-billion for the year ended March 2025, according to its annual report published on Friday.
PIC, Africa's largest asset manager which oversaw R3.049-trillion as of March 31, manages assets for public sector clients including South African civil servants' pension funds.
Returns in the 2024/25 financial year were helped by the South African stock market's 31.3% dollar return over the period - significantly outpacing emerging markets' 8.6% gain, according to MSCI - fuelled largely by cyclical and resource-heavy sectors.
PIC's investments in non-life insurers led sub-sector growth with a 62% surge, while construction and materials stocks in its portfolio rose 44% amid expectations of infrastructure recovery.
Precious metals and mining shares gained 42.5% as geopolitical tensions boosted demand for gold and platinum, assets seen as safe havens, PIC said.
In contrast, PIC's alternative energy stocks slumped 51.3%, weighed down by regulatory hurdles and low natural gas prices. Chemicals fell 36.5% due to weaker ammonia and gas markets, while industrial metals dropped 24.2% on falling commodity prices and rising production costs.
The divergence underscores the broader challenge for emerging markets navigating economic growth and climate ambitions. South Africa has pledged to cut greenhouse gas emissions to net zero by 2050 and is seeking billions of dollars in climate financing from wealthier nations to transition from coal to renewables.
PIC said regulatory constraints prevented it from increasing its exposure to financials, which weighed on overall perform
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