Last Updated
Friday 24 October 2014, 07:00 am.
BPOPF launches window to secure in pensions

The Pre-retirement Switch Investment Model launched by the Botswana Public Officers Pension Fund (BPOPF) this week in Gaborone aims to enable members nearing retirement to transfer their pension capital to an investment portfolio.
By Boitshepo Majube Wed 16 Oct 2013, 15:58 pm (GMT +2)
Mmegi Online :: BPOPF launches window to secure in pensions








The option to switch portfolios can only be exercised by members who intend to retire in three years.   

"The reason for offering the option to members with a three year time period to retirement is because the conservative portfolio's main objective is to preserve the money that has been accumulated and members with more than three years to retirement should be more focused on growing the money than focusing on capital preservation," said Moemedi Malindah, BPOPF General Manager Investments. Concerning the advantages and potential benefits of switching to the preservation portfolio,

Malindah explained that the switch helps with the preservation of the capital amount, as the member is not exposed to more risky asset classes and the resultant sudden changes in investment returns.

"The member is not exposed to any currency risk," he said.

About the disadvantage of switching to the preservation portfolio, he said on a comparative basis, during periods of strong equity market performance, the pre-retirement switch portfolio may be outperformed by the active member and deferred pensioner portfolio, hence delivering lower returns.  "Once the member switches to the pre-retirement switch, their investment shall not benefit from any favourable currency movements," Malindah said, further explaining that no decision reversals will be accepted. 

BPOPF Chairman Carter Morupisi said members nearing retirement have a lower risk appetite and therefore their main investment concern is capital preservation. He explained that the pre-retirement switch is therefore a strategic step meant to provide such members with an opportunity to shift to a conservative investment environment to preserve what they have accumulated over the years.

Morupisi said this should allay members' fears of sudden substantial reductions of their fund credits occasioned by market downturns on the eve of retirement.

"Such unfortunate scenarios are undoubtedly, a great inconvenience to our members," he said.



Business
Thu 23 Oct 2014, 15:41 pm
Thu 23 Oct 2014, 15:41 pm
Thu 23 Oct 2014, 15:34 pm
Thu 23 Oct 2014, 15:37 pm
Thu 23 Oct 2014, 15:32 pm
Thu 23 Oct 2014, 15:32 pm
Thu 23 Oct 2014, 15:25 pm
Wed 22 Oct 2014, 16:19 pm
Wed 22 Oct 2014, 16:12 pm
Wed 22 Oct 2014, 16:13 pm
Tue 21 Oct 2014, 17:14 pm
Tue 21 Oct 2014, 17:11 pm
Tue 21 Oct 2014, 17:02 pm
Fri 17 Oct 2014, 16:50 pm
Fri 17 Oct 2014, 15:40 pm
Fri 17 Oct 2014, 16:29 pm
Fri 17 Oct 2014, 16:31 pm
Fri 17 Oct 2014, 16:36 pm
Fri 17 Oct 2014, 16:38 pm
Fri 17 Oct 2014, 16:40 pm
Fri 17 Oct 2014, 16:44 pm
Fri 17 Oct 2014, 16:47 pm
Fri 17 Oct 2014, 16:42 pm
Thu 16 Oct 2014, 15:04 pm
Thu 16 Oct 2014, 15:02 pm
Exchange Rates
FOREIGN EXCHANGE: Thursday, 23 Oct 2014
FOREIGN / PULA
PULA / FOREIGN
1 USD = Pula   9.1408
1 GBP = Pula   14.6843
1 EUR = Pula   11.5607
1 YEN = Pula   0.0853
1 ZAR = Pula   0.8306
1 Pula = USD   0.1094
1 Pula = GBP   0.0681
1 Pula = EUR   0.0865
1 Pula = YEN   11.73
1 Pula = ZAR   1.2039
Banner Image
Stock Exchange
STOCK EXCHANGE: Wednesday, 22 Oct 2014
DOMESTIC STOCKS
ABCH
716
BARCLAYS
375
BIHL
1137
CHOBE
420
CHOPPIES
415
CRESTA
89
ENGEN
1000
FNBB
360
FSG
235
FURNMART
230
G4S
375
LETLOLE
215
LETSHEGO
275
NAP
217
OLYMPIA
20
PRIMETIME
248
RDCP
203
SECHABA
2800
SEFALANA
910
STANCHART
1250
TURNSTAR
200
WIL
300
IMARA
210
  • Previous
    Snowpiercer Poster
    Next
    Masa Centre
    ::: Friday 24 Oct - Thursday 30 Oct :::
    Snowpiercer
    Brick Mansions
    Teenage Mutant Ninja Turtles
    This Is Where I Leave You
    The Equalizer
  • Previous
    Brick Mansions Poster
    Next
    Riverwalk
    ::: Friday 24 Oct - Thursday 30 Oct :::
    Brick Mansions
    Snowpiercer
    Teenage Mutant Ninja Turtles
    This Is Where I Leave You
  • Previous
    Brick Mansions Poster
    Next
    Gamecity
    ::: Friday 24 Oct - Thursday 30 Oct :::
    Brick Mansions
    Snowpiercer
    Teenage Mutant Ninja Turtles
    This Is Where I Leave You
    Dracula Untold
    The Equalizer