Three years have passed since Georgia’s Pension Fund launched its Balanced and Dynamic investment portfolios in August 2023. According to the Pension Fund, both portfolios have delivered strong returns over the period, largely due to their relatively high exposure to international equities.
From August 2023 through August 2026, the Dynamic portfolio generated a 50.9% nominal cumulative return and a 34.2% real return after inflation, with annualized nominal and real returns of 14.3% and 10%, respectively. The Balanced portfolio posted a 46.2% nominal cumulative return and a 30% real return, with annualized returns of 13.2% and 8.9%. The Conservative portfolio, meanwhile, returned 41.4% nominally and 25.7% in real terms, with annualized returns of 11.9% and 7.7%. Since January 1, 2019, the Conservative portfolio has generated a 113.8% nominal return and a 40.5% real return.
The Pension Fund said August performance was supported by the recovery in international equity markets and positive contributions from local fixed-income instruments. The Dynamic portfolio posted the strongest monthly performance, rising 1.96%, followed by the Balanced portfolio at 1.57% and the Conservative portfolio at 1.18%. The Fund attributed the Dynamic portfolio’s stronger result to its higher share of international equities. Meanwhile, the Georgian lari appreciated by around 0.54% against the US dollar, partially reducing returns from foreign-currency-denominated assets.
All three portfolios also recorded positive real monthly returns in August, when monthly inflation stood at 0.40%. The Dynamic portfolio’s real monthly return was 1.55%, compared with 1.16% for the Balanced portfolio and 0.77% for the Conservative portfolio. Since the beginning of 2026, the Dynamic portfolio has returned 9.55% nominally (5.06% real), the Balanced portfolio 8.87% (4.40% real), and the Conservative portfolio 8.06% (3.62% real). By the end of August, Pension Fund assets had approached GEL 10 billion, while cumulative investment gains exceeded GEL 2.9 billion.
