The cheapest pension fund in South Africa

Finance Minister Enoch Godongwana recently revealed that the Public Investment Corporation (PIC) charges total management fees of just 0.04% of its total assets under management (AUM).

According to Godongwana, this is significantly below prevailing market levels and materially lower than those charged by most active managers and even many passive products.

This, the minister said, results in substantial cost savings for the Government Employees Pension Fund (GEPF) and ensures that a greater share of investment returns accrues to members rather than being absorbed by fees.

Godongwana revealed this in response to a recent Parliamentary question from DA MP Andrew Bateman, who asked the minister for details regarding the PIC’s fee structure.

In his response, Godongwana said that, in rand terms, the PIC had R3.72 trillion in AUM at the end of January 2026.

This marks an almost 22% increase in AUM compared to the end of March 2025, when the PIC managed R3.05 trillion worth of assets.

This makes the PIC the biggest asset manager in South Africa, even larger than Ninety One, the country’s largest private asset manager with R3.6 trillion in AUM as of 31 December 2025.

The PIC’s pension fund is also significantly cheaper than many private-sector retirement annuity funds, with a total fee of 0.04% of AUM.

For reference, Ninety One’s Managed Fund has a total expense ratio (TER) of 1.17%, and Stanlib’s Moderate Fund of Funds has a TER of around 1.47%.

It should be noted that this is not a direct comparison but merely a point of reference for the fees some of South Africa’s largest private asset managers charge for specific funds.

Godongwana explained that the PIC charges different fees based on specific asset classes, with assets such as property and unlisted investments generally requiring higher fees.

This, he explained, is due to their complexity and active management requirements. The PIC charges a fee of 0.26%/AUM for its property portfolio and 0.43%/AUM for the Isibaya Fund, which houses its unlisted investment portfolio.

This is significantly higher than the 0.03%/AUM fee charged for the PIC’s listed equity portfolio and the 0.02%/AUM fee for its fixed income portfolio.

However, Godongwana said even the higher fees remain competitive and at the lower end of market norms.

The minister said the PIC’s low fees result in substantial cost savings for the GEPF and ensure that a greater share of investment returns accrues to members rather than being absorbed by fees.

The PIC’s fee structure and AUM can be seen in the table below, which was published by Godongwana in response to Bateman’s question.

R1.46 billion in fees

In 2026 to date, Godongwana said the PIC has made R1.46 billion in management fees, up from R1.31 billion in 2025.

These management fees constitute a major source of the PIC’s income that finances its operations. 

In the PIC’s Corporate Plan for 2025/26 to 2027/28, it explained that competitive management fees are part of the corporation’s strategic positioning, and that stakeholders require it to contain these fees.

The PIC further explained that its management fees are charged on the market value of its AUM and committed capital during the commitment period.

Other sources of the PIC’s income include board fees, where employees are nominated as directors on investee companies, and investment income, which it receives from surplus corporate operations funds that have been invested.

However, the PIC highlighted that increasing its management fees could be a strategic driver to achieve improved financial sustainability.

Other drivers the PIC included were revenue and cost containment, as well as expanding into new sectors and clients.