Following the promulgation of the Public Investment Corporation Act, 2004, the PIC evolved from the Public Investment Commissioners into the Public Investment Corporation in 2005.
Our status as a Corporation has distinct advantages for both our clients and our shareholders.
Our clients receive an investment service on par with any private asset manager, as we are bound by the same rules and principles as any other asset manager in the financial services sector.
Better service has also come about through PIC’s ability to attract and retain top investment professionals. On becoming a Corporation, the PIC gained the autonomy to set competitive, market-related human resources policies and seek out top talent to populate each of our divisions.
Corporatisation has benefited our shareholder, the Government, by creating an enhanced corporate governance environment. For instance, the PIC’s Board of Directors now has full responsibility for all employment matters, including performance management and can thus ensure optimum performance at all levels.
The PIC is aligned with King IV and follows best practice codes and guidelines. The current governance structures empower and regulate how both the Board and management exercise control over the affairs of the PIC and AuM.
The PIC Board has a majority of non-executive directors and so ensures regular self-evaluation by the Board and its committees, and makes full disclosure of all executive remuneration.
On becoming a Corporation, the PIC qualified for registration with the Financial Sector Conduct Authority (FSCA), which requires financial services providers to operate under detailed client investment mandates, ensuring client-centred asset management and fully transparent policies and procedures.
We practise shareholder activism to ensure that the entities in which we invest on our clients’ behalf are well managed, accountable and actively involved in the transformation. This is made possible by the fact that we have controlling stakes in several of Johannesburg Securities Exchange-listed companies.