DPF portfolio defies global market slowdown
Lewanika Timothy | Monday September 22, 2025 10:46
The fund ended June 30 with P11.9 billion in assets under management, up from P11.5 billion in the first quarter, despite what executives described as “heightened market volatility and challenging conditions”.
The performance was achieved even after accommodating for what executives said were “notable member exits during the period”. In a second-quarter update, the DPF said its investments in Africa-listed equities delivered the highest returns, followed by returns from emerging market equities. The yields from Africa-listed equities are a gain for the DPF, as most equities in the African market are troubled by currency devaluations and instability in policy.
The DPF noted that it had overall portfolio gains across its various asset classes, including marginal gains in local equities and the local money market, which delivered small gains and rebounded from sluggish returns in the first quarter of this year.
“Overall, the majority of the fund's Asset Classes performed positively by the end of the quarter,' the fund’s executives said. “Portfolio performance was mainly driven by Africa Equities, Emerging Market Equities, Global Equities, Botswana Equities, Global Bonds, Botswana Property and Botswana Cash.”
The Fund’s asset growth was spurred by African equities, which grew by over 17%. Local equities made a strong contribution of 8.22 percent, rebounding from a sluggish 1.2 percent in the first quarter. The Botswana Stock Exchange (BSE) posted record equity turnover in H1 2025, with equity trading tripling relative to some past measures.
“The top performing asset class for the Fund in the quarter was Africa Equities, which increased 17.50%,” noted executives.
Emerging Market Equities rose 10.95% followed by Global Equities, which advanced 8.68 percent. Botswana Equities, Global Bonds, Botswana Property, Botswana Cash, and Global Property all provided positive performance in the quarter, advancing by 8.22 percent, 1.79 percent, 1.33 percent, 0.99 percent, and 0.25 respectively.
The DPF is a defined contribution pension fund established in 1984 as a trust through a joint initiative between Debswana, Anglo American Corporation Botswana, and De Beers Prospecting Botswana with key investments in property, equity, bonds and alternatives.
The Fund uses a Life Stage Model that invests members’ money differently depending on how close they are to retirement. The Market Channel, which is the most aggressive and invests mainly in equities, delivered the highest return of 12.41% over the past 12 months, giving younger members strong growth.
The Conservative Channel, with a balanced mix of equities, bonds, and cash for members closer to retirement, returned 10.99% in the second quarter, offering solid growth with lower risk. The Pensioner Channel, the safest option focusing mainly on bonds and income assets, returned 9.63 percent, providing retirees with steady and reliable income.
Executives said this segmented approach ensures members automatically shift from higher growth to more stability as they age.