Georgian Pension Agency Ventures into High-Risk Portfolios Featuring Tech Giants Like Apple, Google, and Samsung
Goga Melikidze, the Senior Investment Officer of Georgia's Pension Agency, elaborated on the agency's investment strategy at a meeting held at the National Bank today. Highlighting the qualified and independent nature of the investment council overseeing these assets, Melikidze offered insights into the diversified portfolios available to pension savers.
"The agency offers what we refer to as a growth portfolio, often categorized as high-risk. Yet it presents an optimal strategy for reaping long-term rewards," Melikidze stated. According to him, this growth portfolio will allocate 55% of an investor's savings in U.S. dollars, including shares in renowned companies like Apple, Samsung, Nestle, Toyota, Google, and Louis Vuitton. The remainder of the portfolio—45%—will consist of Georgian treasury bonds and domestic bank deposits.
Designed to meet globally recognized standards for maximum growth potential, the portfolio will feature an array of investments diversified both by company and by geography. Countries represented will span the U.S., Canada, developed European nations, Australia, affluent Asian economies, and major Latin American countries.
"It's essential to understand that these pension savings are not only safeguarded by diversified investment strategies but are also regulated by Georgian law. Furthermore, the portfolio is managed by an independent board of qualified investors and is under the purview of the National Bank," Melikidze affirmed.
The agency's core objective, he emphasized, is the prudent management and safeguarding of pension assets, aligning with the best interests of the individual participants.
"Taking into account legal stipulations, we have given participants the latitude to choose from among various investment portfolios, thereby optimizing their returns. We continue to offer steadfast support in helping participants navigate these options," Melikidze added.
The officer also revealed some encouraging performance metrics: The agency has already generated an impressive 680 million GEL in investment profits—amounting to a 52% return. When adjusted for inflation, the return rate surpasses 12%. Moreover, more than 13 million GEL in pension payouts have already been disbursed to over 5,000 participants.
These strategic moves demonstrate the Pension Agency's commitment to not only safeguard but also to significantly grow the retirement savings of Georgians, all while engaging with some of the most lucrative and well-known companies in the world.