The move by the Public Investment Corporation (PIC) to split the chief investment officer role (CIO) into three distinct roles responsible for listed investments, unlisted investments, properties and infrastructure is off to a slow start, with the asset manager having restarted the appointment process.
The asset manager, the JSE’s biggest investor with assets under management exceeding R3.5-trillion, has now re-advertised the three roles ― nearly two months after it initially advertised it ― advising previous applicants not to reapply.
The PIC has also readvertised the roles of chief risk officer and COO as the asset management forges ahead with one of its biggest leadership overhauls in recent memory.
The company earlier this year parted ways with its CIO, Kabelo Rikhotso, who was placed on precautionary suspension in October.
Group CEO Patrick Dlamini, who has been in the role for nearly a year, has led the review of the company’s corporate strategy and structure to be fit for purpose for the organisation’s size.
The review has led to the decision to abolish the role of a single CIO, with the new structure splitting the present CIO function into three CIO positions to enhance efficiency and more effective investment management across the listed and unlisted properties and infrastructure investment portfolios.
With more than 85% of the PIC’s assets in the listed space (equities and bonds), the role of CIO of listed investments is set to be the main post.
The PIC reintroduced the role of CIO into the PIC’s operating structure in line with the recommendations of the Mpati commission of inquiry.
The commission recommended the reinstatement of the position of CIO to strengthen governance and separate the roles of CEO and CIO to better segregate the duties to avoid a concentration of power.
Whoever is appointed as CIO of the properties and infrastructure business and of the unlisted space will have their work cut out for them.
The PIC’s unlisted investments have often stirred controversy and big losses for the company, which manages government workers’ pensions.
Parliament was told last year that more than 40% of its unlisted portfolio was in distress after a sustained period of underperformance.
One of the mandates the board gave to Dlamini was to clean up its multibillion-rand unlisted portfolio.
To this end, the PIC earlier this year went to market seeking a panel of experts to analyse and evaluate troubled companies in the portfolio and to return them to solvency or reduce the losses and exposure of shareholders and funders.
The panel, according to the PIC, must comprise turnaround professionals, liquidators, business rescue professionals and property specialists.
The panel will also be tasked with identifying the reasons for failing performance in the market and instituting corrective measures.
The PIC expects the panel’s process to lead to the production of a long-term strategic plan and restructuring plans, dependent on the viability of the asset.
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