A PFR2 tsunami and the market’s sink-or-swim moment

Home of capital: Several asset managers are based in the Fairgrounds office area 
PIC: MORERI SEJAKGOMO
Home of capital: Several asset managers are based in the Fairgrounds office area PIC: MORERI SEJAKGOMO

By next December, local pension funds will have to return P5.4 billion from offshore and invest it locally, as they ramp up to the minimum 50% domestic investment NBFIRA requires them to reach by 2027. Will they find investment opportunities or will returns and pensioners suffer? MBONGENI MGUNI writes

Local investment professionals reject the criticism that they are too conservative. The debate over changes to the pension fund rules, has been raging for years and at times accusations have been traded between the regulators and the investment professionals managing billions of Pula on behalf of the pension funds.

Known formally as the Pension Fund Rule 2 or PFR 2, the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) statute previously required pension funds to invest at least 30% of their assets locally. By May, that figure equalled P38.2 billion.

Editor's Comment
Our queen: Bring home the crown

Well-wishers gathered at the Sir Seretse Khama International Airport to bid our queen farewell and wish her success as she joins other beauties from around the globe for the coveted crown. Competing in such events is nerve-wracking, and one needs to be fully prepared to stand a chance of making it as a finalist.It is not just about physical fitness; mental state matters too. Unfortunately, sometimes our queens end up facing such fierce...

Have a Story? Send Us a tip
arrow up