DPF assets soar to P9.5bn
Pauline Dikuelo | Monday September 13, 2021 06:05
The DPF’s assets were measured at P8.83 billion as at September 30 last year.
The DPF is the country’s largest private sector pension fund, as the larger P83 billion Botswana Public Officers Pension Fund is the pool for civil service pensions. Currently, the DPF has approximately 12,500 members.
DPF CEO, Gosego January said the pension fund had managed to record growth despite the volatile global markets, increased risk events as well as the tough and subdued domestic economic environment over the last few years.
“To be able to continue to grow and yield positive returns for the members has been a result of a strong and resilient investment strategy, which is based on the Life Stage Model that was enacted by the fund and invests member funds based on an individual’s age and risk appetite,” she said in a statement.
In addition, January said the DPF challenged itself by navigating new emerging and frontier markets such as China and Africa. She said the fund management team has explored a whole array of investment instruments that have deepened the portfolio by constructing a defensive portfolio that ensures sustainability while still enabling substantial growth.
Further January said the fund continues to invest substantially in domestic instruments and additionally supports local talents such as new and emerging Batswana owned asset management firms to ensure skills transfer and development that will drive growth for the fund and the wider economy.
Meanwhile, the DPF is currently reviewing its product offering with a view to enhance and introduce a whole suite of retirement solutions to meet the ever-changing and dynamic needs of its members by creating a one-stop-shop.
“Through our subsidiary Mmila Fund Administrators, DPF is now able to provide members with additional benefits such as the Beneficiary Funds. These developments enable DPF to look after families of its members even when the member has passed on,” she said.
The latest Bank of Botswana statistics revealed that collective pension fund assets rose from P94.3 billion at the start of 2020 to P105.1 billion by December 2020. As at the end of May this year, the collective assets of local pension funds were measured at P110.3 billion.
Under current rules, local pension funds are required to hold a minimum of 30% of their assets locally, although momentum is gathering within government to raise this threshold to 70%.
Globally and locally the pension fund sector has become critical, especially that governments look for development and financing partners in the wake of COVID-19.