The Pension Fund of Georgia increased its assets under management by 37 per cent to GEL 8.2bn in 2025, while investment income reached a record GEL 796m, according to its Investment Report 2025.

The fund said cumulative investment returns since its inception have now exceeded GEL 2.2bn.

All three of the fund's investment portfolios delivered double-digit nominal returns during the year.

The dynamic portfolio returned 15.2 per cent, followed by the balanced portfolio with 13.3 per cent and the conservative portfolio with 11.8 per cent.

The fund attributed the dynamic portfolio's stronger performance to its higher allocation to equities, which were its best-performing asset class during the year.

Commenting, Pension Fund of Georgia chair of the investment committee, Michael Ridley, said: “This performance was achieved in a year that combined periods of significant volatility with another strong year for global equities.

“Market leadership broadened beyond the narrow group of US mega-cap stocks that had dominated previous years, a rotation that rewarded the fund's diversified regional structure across the US, Europe, Asia, and emerging markets.”

The fund's international equity allocation increased from 16.5 per cent to 19.2 per cent during the year, contributing GEL 239m to returns.

However, more than 80 per cent of the fund's assets remained invested in Georgia, with domestic market conditions continuing to drive overall performance.

The report highlighted strong economic growth, contained inflation and an appreciation of the Georgian Lari against the US dollar during the year, providing a “strong macroeconomic backdrop”.

Certificates of deposit remained the fund's largest contributor to investment performance, while Georgian government bonds and corporate bonds also made significant contributions.

The fund said it continued to participate actively in government bond auctions and remained the largest institutional investor in GEL-denominated corporate bonds.

Ridley added: “The fund’s investment approach remains anchored in strategic asset allocation, which is the most important driver of long-term outcomes for participants.

“Looking ahead, our focus remains unchanged: to deliver positive real returns over the long term, manage risks prudently, and continue acting as a constructive institutional investor in Georgia’s capital markets and internationally.”

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