Monday, March 8, 2021

BPOPF new strategy targets P100 billion asset base in three years

Botswana Public Officer’s Pension Fund (BPOPF), the largest pension fund in the country is embarking on an ambitious three year investment strategy with particular focus and bias towards Botswana alternatives that are private equity, infrastructure and strategic investment.

Botswana like other African countries is suffering from infrastructure deficit that has since penalised the economic growth.

BPOPF is certain that without infrastructure development and energy, Botswana’s dreams cannot be realised. The fund is convinced the two key areas require greater and smarter investment to fuel the country’s economic growth ultimately bringing an end to the energy woes that the country is currently faced with.

According to a recent survey by Ernst & Young, 44 percent of businesspeople in Africa identified inadequate infrastructure as one of the key constraints to doing business in the region, hence infrastructure and energy development must top the investment agenda.

The 2014-2016 new strategy which BPOPF has adulated as diversified and specific has added new portfolios that are International property and South African inflation linked bonds.

“There are a lot of challenges in the Botswana market, last year‘s budget speech was very clear on the scarcity of resources and the impact on economic growth, hence the need to invest in related projects,” said Lesedi Moakofhi the Acting Chief Executive Officer at BPOPF.

Moakofhi emphasised the need for the fund to be an active player in the economy. New strategy is focused on the member portfolios are structured such that they focus on wealth accumulation, preservation and capital drawdown phases of a member’s investment cycle.

“With this new strategy we see ourselves talking of P100 billion asset base in the next three years,” she said.

The Pension Fund which is the largest fund in this country has more than 150 000 members and primarily invests members’ funds in assets such as equity and property in the local market, emerging markets and developing markets. It has an asset base of P38.7 billion and pensioner assets were valued at P32.9 billion as at March 2013.

The more diversified and specific strategy has revised the different portfolio allocations with a more local focus. For the active portfolio 40 percent was allocated locally and 60 percent offshore, the profit pensioner portfolio 50percent allocated local and 50 percent off-shore, under the non- profit pensioner portfolio 70 percent has been allocated locally and 30 percent offshore, the pre retirement switch portfolio investment will be done locally. With the new strategy procurement of all services will follow tender process.

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