Botswana Public Officer’s Pension Fund (BPOPF), the largest pension fund in the country says it will soon up an infrastructure fund for the local market.
Acting Chief Executive, Lesedi Moakofhi, says the fund is part of the ambitious three year investment strategy with particular focus and bias towards Botswana alternatives that are private equity, infrastructure and strategic investment.
“We are in the process of setting up an infrastructure fund that looks only at Botswana opportunities,” Moakofhi said recently when addressing journalists.
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.
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.
Traditionally the fund has been investing heavily in the offshore markets as they were faced with challenges of limited investment opportunities in the local economy. The fund invested as much as 70 percent in offshore markets and only 30 percent locally.
Available figures show that it has enjoyed a strong growth on the active member portfolio since inception with an annualised return of 9.5 percent over the past 12 years compared to effective annual inflation of 7.3 percent over the same period.
Meanwhile the acting chief executive on Monday announced that the fund has declared the interest rate for 2014 as 12.25 percent for Active and Deferred portfolio while 3.5 percent has been declared for the With-Profit.
“It is quite important for members to note that it is in the nature of markets to fluctuate over time, hence they should expect a fluctuation in the growth of the fund. Past growth should also not be treated as a good indicator of future growth,” Moakofhi pointed out.