Brian Molefe resigns from PIC

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Molefe who has run one of the country's most powerful investment funds has stepped down.

JOHANNESBURG - Brian Molefe, the head of one of the country's most powerful investment funds, the Public Investment Corporation (PIC), has stepped down. He will not renew his contract which expires on April 12 2010.

Many speculated that it was only a matter of time before he left because of his alleged links to Thabo Mbeki.

He was not afraid to speak his mind. In 2008 he spoke out against the appointment of Barloworld's Deputy Chairman Trevor Munday, which saw Munday step down. Molefe said the decision to appoint a white deputy to advise the company's first ever black chairman in its 105-year history was ``racist''.

The PIC manages the Government Employees Pension Fund, as at March 31 2008, it had R786.8bn in total assets under management of which equities totalled R372bn or 48%.

Molefe joined PIC in June 2003 from the National Treasury where he was deputy director general. He was in the top seven best paid parastatal bosses in executive remuneration terms in the year to March 31 2009 earning R3.9m.

In 2009 the PIC showed its full strength when it pulled billions out of fund managers, such as Futuregrowth Asset Management, Old Mutual Investment Group, RMB Asset Management, Sanlam Investment Managers and Stanlib Asset Management. This was flagged by Old Mutal at Thursday's results presentation.

This was allocated to style mandates managed by Omigsa, Cadiz and Frater while 36.8% was invested in industry mandates through Prudential, Investec, Sanlam Investment Managers, and Coronation. Incubation managers including Argon and Renaissance manage 4% of the equity funds.