Tbilisi (GBC) - The Pension Fund has published its 2025 report, where Michael Ridley, Chairman of the Investment Committee, on behalf of the investment team, reports on the fund's results and investment approaches and plans.
In particular, according to them, certificates of deposit remained one of the largest sources of returns in pension assets, which reflects both their high share in the total portfolio and the stable profitability of the local banking sector.
According to them, Georgian government securities, which remain one of the main strategic asset classes of the Pension Fund, also retained an important role in annual returns. In addition, during the year, the Fund further deepened its involvement in the local capital market and maintained its role as a leading institutional investor in the Georgian corporate bond market.
Investment officers note that the Fund’s investment approach is based on strategic asset allocation, which they say is the main determinant of profitability in the long term. “In the future, our main priority remains unchanged: maximizing positive real returns in the long term, prudent risk management, and playing a significant role in the Georgian capital markets and international markets.”
It should be noted that during 2025, the volume of pension assets increased by 37% and reached GEL 8.2 billion by the end of the year. The investment profit generated in 2025 amounted to GEL 796 million, which is the highest annual figure in the history of the fund, and the total investment income since its establishment has exceeded GEL 2.2 billion.
In 2025, all three investment portfolios showed double-digit nominal profitability. The dynamic portfolio recorded the highest result - 15.2%, the profitability of the balanced portfolio amounted to 13.3%, and the conservative portfolio, in which the largest part of the assets is placed, showed a return of 11.8% during the year.
In 2025, international equities were the fund's highest-yielding asset class. Accordingly, the dynamic portfolio, in which the share of stocks is the highest, retained its leadership among investment portfolios in 2025.
During the year, the share of international stocks in pension assets increased from 16.5% to 19.2%, and the profit received amounted to GEL 239 million, which is equivalent to an annualized return of 20.7%.
The local economic environment remains one of the main determinants of the fund’s results, as more than 80% of pension assets are invested in Georgia. According to the fund, the macroeconomic background was generally favorable during the year: economic growth continued at a high pace, inflationary pressures remained at a manageable level, and the lari strengthened against the US dollar.
