The Government Employees Pension Fund (GEPF) assured its members of the maintenance of financial stability despite geopolitical tensions caused by conflicts in the Middle East.
Fund's Financial Status
GEPF announced on Monday that the fund is in a strong financial position, with a funding level of 119%, and will continue to fulfill its financial obligations to members and pensioners.
In response to reports of the fund's value decreasing by R200 billion due to the conflict between Israel, the USA, and Iran, GEPF stated that the drop in market values during major geopolitical events, such as the start of a war, a pandemic, or other global events, is an atypical phenomenon. This is linked to the sudden devaluation of assets in the market, triggered by investor panic, rising inflation, and a sharp increase in energy prices.
History of Crisis Overcoming
GEPF noted that its market value has previously been affected by market shocks, but the fund has always recovered all losses, often exceeding its pre-fall value. It cited the Great Recession of 2008 and the COVID-19 pandemic in 2020 as examples, emphasizing that South African markets are sensitive to global market shocks.