General Announcement - Public Investment Corporation SOC Ltd Acquires Equity in ZAR X
Public Investment Corporation SOC Ltd (PIC), one of Africa’s largest investment managers, with assets under management in excess of R1.9 trillion, has made an equity investment in ZAR X on behalf of the Government Employees Pension Fund (GEPF).
ZAR X is a newly-licensed stock exchange founded on using technology to remove existing high barriers to entry, reduce costs, and save time while introducing new opportunities for investors and issuers alike.
“ZAR X and the PIC share a common vision of promoting financial inclusion and stimulating developmental investment,” says ZAR X CEO, Etienne Nel. “Both organisations also emphasise innovation in order to enable broad financial access and inclusion and to introduce long-awaited competition to grow the capital markets.”
“In addition, ZAR X is keenly focused on the reduction of systemic risk in the financial markets. Our partnership therefore encapsulates a shared operational ethos of rigorous governance processes, diligent risk analysis, and the application of intelligent compliance practices.”
“The acquisition by PIC of a shareholding in ZAR X is a vote of confidence in the exchange’s innovative business model and its ability to influence the capital markets efficiently. The joint venture will be to the advantage of the full spectrum of South Africans and will facilitate the development of new industries that will expand the economy while removing the social, cultural, and commercial barriers to investment capital for people and businesses alike.”
“Having a partner of this stature and reputation positions ZAR X ideally to make a major impact on the sector.”
Head of Corporate Affairs at PIC, Deon Botha, said: “We are very excited about our association with the ZAR X stock exchange. This transaction provides us with an opportunity to own a portion of the stock exchange whilst at the same time affording us an alternative platform from which to trade and on which to list. This will further assist us in our resolve to bring about meaningful change in and transformation of the domestic capital markets and overall financial services industry landscape. We believe that transformation of this industry is necessary if we are to realise our long term objective of achieving real and tangible inclusive growth.”
About ZAR X
ZAR X represents a watershed in the financial markets. It was South Africa’s first new stock exchange in 58 years. It is the only fintech in the country operating as a stock exchange - and the only one focused on enabling financial access and inclusion. By using technology to slash costs by up to 80%, it enables small and medium companies to list alongside large corporates, exponentially expanding the market. By making it profitable for small to medium brokers to serve the vast untapped retail market and enabling the average citizen to acquire a stake in business success with as little R1 000, it massively expands access. And, by relentlessly stripping complexity from the process of raising capital, ZAR X accelerates business growth for organisations of all sizes and, therefore, facilitates job creation.
The Public Investment Corporation (PIC) is a public asset management firm wholly owned by the South African government, with the Minister of Finance as the sole shareholder representative of the government. PIC’s clients are mostly public sector entities including the Government Employees Pension Fund, which contribute 90% of the funds that PIC manages. Other clients include Unemployment Insurance Fund, Associated Institutions Pension Fund, Compensation Commissioner Pension Fund and Compensation Commissioner Fund.
The PIC is a hybrid of a single asset manager and a multi-manager with emphasis on providing its clients with value at a low cost and invests in established names with strong management requiring little oversight. PIC is a world class asset management company, and it boasts more than 100-year reputation of delivering excellent results. It is the largest and most successful asset manager on the African continent with assets under management in excess of R 1.928 trillion as at 31 March 2017.
The PIC invests in a variety of asset classes such as the following:
- Shares on the Johannesburg Stock Exchange
- Private Equity
- Developmental Investments
The PIC has a clear developmental investment programme. The developmental investments focus on the following areas: Economic Infrastructure (Roads, Rail, Transport & Logistics, Energy, Ports (air, sea, and rail); Social Infrastructure (Affordable Housing, Health, Education); Priority Sector Investments (Agriculture, Agro- processing, Manufacturing and beneficiation Tourism); Environmental & Sustainability (Renewable energy, Clean technology Green buildings, Sustainable environments); and SMEs across all sectors.
For more information, please follow this link: www.pic.gov.za.
ZAR X (Pty) Ltd
26 January 2018