BPOPF seeks new investment adviser
Pauline Dikuelo | Wednesday March 1, 2017 16:19
South Africa’s Novare was engaged by the Pension Fund four years ago on a two-year contract, which was extended in 2015 after a tendering process. According to BPOPF chief executive officer Boitumelo Molefe, the board has agreed to let go of Novare after their current contract ended in January 2017. “After much discussions with the board, we have agreed that it was the right thing to let go of Novare and re-tender. The advert will come out this week and it is open to both local and external companies,” said Molefe at a press conference yesterday.
She said at the moment, Novare are on a month-by-month extension while they undergo a formal tendering process. The new contract is expected to be awarded by May 31, 2017. BPOPF has over P55 billion in assets with about 60% of them invested offshore.
According to Molefe, Novare has worked well with the Fund in developing robust investment strategies that they are currently implementing. She expressed confidence on them noting that there will be no risks to the operations of the Fund in the event of change.She further stressed the importance of having an asset consultant noting that they advise primarily on investment matters.
“This is a very important role and the Fund will do everything in its power to select and appoint the right partner,” she said.
According to Molefe, a fund that functions without an asset consultant and doing it in-house with unskilled personnel is taking unnecessary risks with members’ retirement benefits.
She said apart from developing and researching on investment strategies, an asset consultant reviews and implements investment strategies for various portfolios and also assist with recommending dismissal of non-performing or problematic investment managers. Molefe added that they have made progress in investing in alternative investments to listed equities bonds, property and other listed investments, which are progressing well. “We are currently drawing up the regulations that will define the detailed processes. The local economy has recently shown positive movement as a result of stimulation of the economy by the government,” she said.
Molefe said the private sector now needs to continue leading by coming up with innovative investments especially in the infrastructure space.
“With like minded entities we believe that we can generate profitable projects for our members,” she said.