08 Dec 2020

Acting chairperson of Botswana Public Officers Pension Fund (BPOPF), Mr Moemedi Malindah has urged members of the fund to remain calm after the fund reported a negative investment return of one per cent during the year ended March 2020. 

Addressing a televised media briefing in Gaborone on Monday, Mr Malindah revealed that the fund experienced turbulence in February and March.  

This, he said, led to its Active Member and Pensioner portfolio being eroded and growing by only one per cent to a valuation of just above P71 billion by January 1, 2020. 

Mr Malinda, however, said the turbulence was not too bad to require divestment from markets, noting that the company expected opportunities for midterm rebounds.

He said the negative one per cent investment return would have no effect on the investment, savings of the fund’s active members, especially after the interim portfolio was up 10 per cent from the dip, which was experienced at March 31. 

He further said while COVID-19 had reduced investment opportunities, the firm was looking at diversifying its investments.

Mr Malindah further warned that BPOPF expected turbulence, heading into the short term, with mild to rough turbulence expected ahead, but promised that the fund would be looking to protect its customer benefits.

He said pre-retirement benefits would not be affected by the recent posting of investment returns.

He also advised members to always stay abreast of their investment to avoid any delays or administrative issues during claims. 

According to the fund’s recently released annual report, the reported negative investment was the fund’s lowest recorded since 2009, where it recorded just below the negative 10 mark.

The current low record is attributed to the effects of COVID-19. Ends