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Eskom pension fund pays out R104mn bonus to help members survive COVID-19
In efforts to mitigate the financial burden caused by COVID-19, the Eskom Pension and Provident Fund has paid out R104 million to its members. About 33 000 pensioners have benefitted from the special bonus. Linda Mateza, CEO of the Eskom Pension & Provident Fund joins CNBC Africa for more.
Wed, 12 Aug 2020 15:54:54 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Emphasis on minimizing risk and maintaining stability over high returns in investment strategy
- Diversified portfolio includes exposure to various asset classes to mitigate risk
- Focus on long-term capital market assumptions to guide investment decisions and ensure sustainable returns for members
The Eskom Pension and Provident Fund has made headlines by providing a special bonus of R104 million to its members in an effort to help them cope with the financial impact of the ongoing COVID-19 pandemic. The fund, which boasts a more than 100% funded position, has taken a strategic approach to managing its investments to ensure the long-term sustainability of its pension promises. Linda Mateza, CEO of the Eskom Pension & Provident Fund, recently shared insights into the fund's investment strategy during an interview at CNBC Africa. Mateza emphasized the importance of minimizing risk in the current economic climate, prioritizing stability over high returns. She explained that the fund's diversified portfolio includes exposure to various asset classes, such as listed property plays and international markets, to mitigate risk. Despite challenges posed by the pandemic, Mateza remains confident in the fund's ability to weather market fluctuations and uphold its commitment to pensioners. While acknowledging the uncertainty brought about by COVID-19, Mateza underscored the fund's focus on long-term capital market assumptions to guide its investment decisions. By carefully analyzing market trends and adjusting asset allocations, the fund aims to secure sustainable returns for its members over the next 20 years. Mateza also addressed concerns about the fund's ability to provide further financial relief to pensioners in the future. While the special bonus was a one-time gesture to assist members facing financial hardship, Mateza clarified that the fund's resources may not allow for similar payouts in the future. Nonetheless, she expressed the fund's dedication to supporting its members and ensuring their financial well-being amidst the pandemic's economic challenges.
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