The value of assets belonging to Botswana Public Officers Pension Fund (BPOPF) increased by 14.5 percent and shot past the P50billion mark during the financial year 2014/15. In March 2014, total assets belonging to BPOPF were valued at P45.6 billion, a value that increased to P52.4 billion in March 2015.
The Fund’s income from investments also increased by 22.3 percent from 5.6 billion to 6.9 billion. In the same period, the number of pensioners increased from 7,073 to 7,477, which is a growth of 5.7 percent. The total number of BPOPF members and pensioners increased by 0.89 percent from 152, 073 to 152, 428 during the financial year 2014/15.
Briefing members of the media on Friday, BPOPF Chief Executive Officer (CEO) Boitumelo Molefe revealed that 5, 219 members have opted to receive a with-profit annuity, in which pensions rise in a discretionary manner, while 2, 258 members have opted for a non-profit annuity in which pensions increase in line with the fixed escalation rate.
“The BPOPF is in-sourcing all services from Alexander Forbes and they include benefits administration, data services, trust services, investment management services as well as financial services. It is for the first time in its history that BPOPF will have a back office in-house,” said Molefe.
She further revealed that the stabilisation of the go-live is slated for October 2016. Molefe pointed out that the in-sourcing exercise has meant that the Fund had to restructure to enable it to deliver the new services. The restructuring model was approved by the board in November 2015 and has resulted in a new organisational structure. The Fund has in place a five year human resources strategy. Recruitment for the new structure has commenced and is likely to be complete in the first quarter of 2016
“For the first time in its history the Fund is now geared towards a culture of service provision and development,” said Molefe.
She further revealed that BPOPF has increased its collaboration with the Regulator, Non-Banking Financial Regulatory Authority (NBFIRA). As a result of the new responsibility, the Fund is now more than ever focussed on Risk and Compliance, which has led to increased collaborations with the Regulator involving regular audits and meetings to assess progress.
“2016 is also likely to be the year in which the new Retirement Fund’s Act comes into play, which will increase the need for greater regulation. For the first time in its history the Fund is now geared towards a culture of risk management and corporate governance,” said Molefe.
With regards to BPOPF assets under management, in 2014 Investec Asset Management had a portfolio valued at P9, 577 billion which increased to P9, 559 billion in 2015. Allan Gray now manages assets valued at P4, 456 billion (2014:P4, 359 billion), African Alliance P3, 828 billion (2014: P0.00) while BIFM now manages funds valued at P2, 057 billion, down from P7, 350 billion in 2014.