August marked three-year anniversary for two of the Pension Fund's portfolios - the Balanced and Dynamic. Since their inception, both portfolios have delivered significantly high returns, largely due to their relatively high allocation to international equities. From August 2023 through August 2026, the Pension Fund portfolios recorded following returns:

🔹 Dynamic Portfolio: The nominal cumulative return was 50.9%, while the inflation-adjusted real return over the same period was 34.2%. The annualized nominal return was 14.3%, and the annualized real return was 10.0%.

🔹 Balanced Portfolio: The nominal cumulative return was 46.2%, while the inflation-adjusted real return over the same period was 30.0%. The annualized nominal return was 13.2%, and the annualized real return was 8.9%.

🔹 Conservative Portfolio: The nominal cumulative return was 41.4%, while the inflation-adjusted real return over the same period was 25.7%. The annualized nominal return was 11.9%, and the annualized real return was 7.7%. Notably, since its inception on January 1, 2019, the Conservative Portfolio has generated a cumulative nominal return of 113.8%, while its inflation-adjusted real return has reached 40.5%. The corresponding annualized returns are 10.4% nominally and 4.5% in real terms.

In August 2026, the performance of the Pension Fund portfolios was supported by a recovery in global equity markets and positive contributions from domestic fixed-income instruments. Global equities rebounded as confidence in the sustainability of AI-related capital expenditures improved following July's correction, with particularly strong gains across Asia-Pacific and South Korean markets. At the same time, the Georgian lari's approximately 0.54% appreciation against the US dollar partially offset returns from foreign currency-denominated assets.

Consequently, the Dynamic portfolio led monthly performance with a 1.96% gain, benefiting from its higher allocation to global equities, while the Balanced and Conservative portfolios increased by 1.57% and 1.18%, respectively. The Conservative portfolio's lower equity allocation limited its participation in the global market recovery.

With monthly inflation of 0.40% recorded in August, all three portfolios generated positive real monthly returns. The Dynamic portfolio delivered a real return of 1.55%, followed by the Balanced portfolio at 1.16% and the Conservative portfolio at 0.77%.

All three portfolios also maintained strong year-to-date performance, led by the Dynamic portfolio:

🔹 Dynamic – 9.55% (real return: 5.06%)

🔹 Balanced – 8.87% (real return: 4.40%)

🔹 Conservative – 8.06% (real return: 3.62%)

As of the end of August, total assets of the Pension Fund of Georgia approached GEL 10.0 billion, while cumulative returns surpassed GEL 2.9 billion.