By Nick Hedley
South Africa’s Eskom Pension and Provident Fund (EPPF),
which had R184 billion (US$11 billion) in assets at the end of 2021, has
appointed Sonja Saunderson as its next chief investment officer.
Saunderson has been CIO of Johannesburg-listed Momentum
Metropolitan Holdings for the past seven years. Across its wealth,
institutional and retail units, Momentum Metropolitan had R724 billion (US$43
billion) in assets under management and administration at the end of March.
“Sonja’s talent, skills and extensive experience in
investment management will be key to the growth of the EPPF, and in creating
value for our members and stakeholders,” Shafeeq Abrahams, the fund’s
chief executive, said in a statement.
“At the same time, Sonja’s appointment consolidates our
commitment to enhancing diversity, inclusion and belonging within the fund’s
executive leadership team,” Abrahams said.
Saunderson will take over from Phathutshedzo Mabogo and
Thabo Letlaka, who have jointly held the CIO role in an interim capacity
following the resignation of Ndabe Mkhize, who has since founded Mavovo Capital.
Saunderson’s appointment comes soon after South African regulators
amended rules to allow retirement funds to significantly increase their
offshore allocations.
Domestic retirement funds can now invest up to 45% of their
portfolios outside of the African continent. They were previously allowed to
hold 30% of their assets outside of South Africa, plus an additional 10% in other
African countries.
The changes are expected to result in significant capital
outflows from South Africa, given the country’s muted growth prospects.