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Botswana Public officers Pension Fund (BPOPF) intends to grow its assets under management almost two fold in the next five years. The Fund CEO, Boitumelo Molefe, said at a press briefing on Tuesday that BPOPF is looking to grow its assets under management from the current P55 billion to P90 billion over the next five years based on an annualised growth of 7 percent. Though it seems an ambitious target, Molefe said they can achieve this if they can harness their investments. This is part of BPOPF strategic plan which, among key areas, seeks to reduce cost per member from P37 to P27. The strategy, which has already been approved by the board and would come into implementation next year in April, will run until 2022. Molefe said their strategies for the next five years will be achieved through leveraging, optimising the operating model, risk and compliance and development of high performance team.
Following the termination of their contract with Fleming Asset Management, Molefe announced this week that they have decided to transfer their property portfolio to a company called Messidor, which will oversee everything that has to do with the fund’s property. BPOPF has also appointed a German-based company known as Monrovia Capital to manage its private equity fund. Currently the fund’s offshore investments accounts for 58 percent of its investments. Locally it is one of the leading institutional investors in the stock market, holding significant stakes in virtually every listed company and other leading unlisted entities. The new strategic plan has in it a number of policies such as the Incubation Policy, Private Debt Investment Policy and Local Infrastructure Investment Policy. Through the Incubation Policy, BPOPF intends to provide support and accelerate the development of fledging asset managers. Molefe said the fund is willing to provide seeding initial capital but insisted that local ownership must be 100 percent.
Through this policy, BPOPF wants to increase local players in the asset management sector which is mostly dominated by foreign-owned companies. For a company to be considered under this policy, the CEO said it should have less than P1 billon as assets under management and said the Fund is willing to inject at least P500 million. The other policy under the new strategic plan is the local infrastructure investment policy which Molefe said will only be applicable to active and deferred pensioner portfolio. She said they will ensure that there is a robust evaluation process in place. Though she could not state how much has been set, Molefe said funds have been availed to implement the new strategic plan which will also involve change of corporate identity. According to Molefe, the development of this strategy in a period of change and stabilisation of the administration function has become a strategic focus for the fund which is the largest in the country. In June this year, administration functions of the fund were transferred from Alexander Forbes and are now performed in-house.