University of Pretoria makes R5.7 million a day from investments

The University of Pretoria has built an investment portfolio worth more than R25 billion, generating an average increase in value of R5.7 million every day over the past seven financial years.

The university’s investment strategy has turned it into one of South Africa’s biggest institutional investors, with its portfolio benefiting from investments in local and international shares, bonds and other financial assets.

According to a report by Daily Investor published on 30 October 2026, the University of Pretoria’s investment portfolio was valued at R25.66 billion at the end of its 2025 financial year.

Between 2019 and the end of 2025, the portfolio achieved a compound annual growth rate of 12.67%.

This performance highlights the importance of investment income and long-term capital growth in helping universities manage their finances and maintain their operations.

The university’s investment portfolio serves a strategic purpose beyond generating returns. It provides financial security and helps protect the institution against unexpected financial difficulties.

The University of Pretoria uses the fund as a financial safety net to cover short-term liabilities and maintain liquidity when revenue declines or payments are delayed.

This is particularly important when student fee payments, government transfers or funding from the National Student Financial Aid Scheme (NSFAS) are delayed.

The university’s council requires the investment reserves to be sufficient to keep its core academic and research activities running for between 18 and 19 months without any revenue.

The fund must therefore achieve two objectives: preserve enough money to meet financial obligations while growing its capital over the long term.

Interest and dividend income generated by the investments are also recognised in the university’s income statement.

This money can be used to support the university’s operating budget, upgrade facilities, improve infrastructure and provide student bursaries.

The investment portfolio has consequently become an important source of financial support, particularly when other funding sources are under pressure.

The University of Pretoria does not manage all its investments by directly purchasing individual shares and bonds.

Instead, an investment committee oversees a multi-manager investment strategy designed to balance risk, liquidity and long-term returns.

The university works with between 23 and 25 portfolio managers across 11 to 13 South African asset management companies and 12 international managers.

This approach helps diversify investments and prevents the university from becoming overly dependent on a single investment manager.

Its fixed-income investments are managed by established asset managers, including Ninety One, Coronation and Future growth, which forms part of Old Mutual.

Its equity investments follow a similar multi-manager structure.

The portfolio is also divided into different investment categories according to when the money will be needed.

The university periodically rebalances its investments to ensure that its portfolio remains aligned with its financial obligations and infrastructure requirements.

The University of Pretoria has grown considerably since opening its doors in 1908.

It started with just 32 students and four professors operating from a single house.

Today, it has approximately 55,650 undergraduate and postgraduate students, making it one of South Africa’s largest higher education institutions.

Its investment portfolio has become an important part of ensuring that the university can continue funding its academic programmes, research activities and infrastructure.

The R25.66 billion portfolio also demonstrates how long-term investment strategies can help large institutions build financial resilience while generating returns that support their core responsibilities.

Source: Daily Investor – University of Pretoria’s R25.66 billion investment portfolio. BusinessTech – South Africa’s richest universities.

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