Botswana Public Officers Pension Fund (BPOPF) has paid out P4.2 billion in benefits during the 2023/24 financial year to almost 4300 beneficiaries.
This is against the P4.6 billion contribution received from members, an indication that the value of the fund is improving.
The growth is mostly driven by a robust investment drive and strategy by the pension fund.
As a result, the assets under management portfolio have grown from P94.7 billion to reach P108 billion in 2024 which indicates a 15 percent increase.
Private equities raked in P6 billion while local equities value jumped from P13.8 billion in 2023 to P16.3 billion.
Offshore equities went up by 11 percent to reach P59.8 billion from P53.9 billion while local fixed interest portfolio experienced a 33 percent increase from P6.7 billion to finish the year at P8.8 billion.
Another portfolio which recorded growth is the offshore fixed interest which went up by 15 percent to close the year on P2.9 billion from P2.5 billion.
The investment property wing experienced the most growth, skyrocketing by 43 percent to reach P1.3 billion from P887 million while money market securities saw a 33 percent growth, therefore increasing from P9.9 billion to P13.1 billion.
The fund, which serves nearly 150,000 public service members, aims to create value for all of them such that they enjoy huge benefits.
BPOPF is the largest pension fund in the country and one of the biggest in the region.
According to the Fund Chief Executive Officer, Moemedi Malindah, this growth is largely attributed to the fund’s strategy of investing in a diverse range of areas, which helps spread risk and enhance returns.
“Growth is not coming from contributions as you can see but it shows that our efforts of achieving growth in the fund are bearing fruits. Contribution is driven by salary increase and new members but it’s not the driver in terms of overall growth. Overall growth is driven from purely investment drive in various sectors. We are also grateful that the government has made commitment to contribute P4.6 billion for its members and continue to honour it every year,”said Malindah.
BPOPF’s investment portfolio spans across several sectors of the economy, including property, retail, finance and insurance, telecommunication and power.
Further, the fund has interests and shareholding in notable companies such as Sefalana Group, Choppies, Tlou Energy in its Lesedi Gas to Power project, Letlole La Rona, about 40 percent shareholding in Mascom wireless and an investment in Hilton Garden Inn Hotel.
