BPOPF increases stake in LLR
Botswana Public Officers Pension Fund ( BPOPF) has increased its stake in Letlole La Rona ( LLR), a notice to shareholders on the bourse has announced. The development comes after over five percent of total securities were sold by Grit Services, a shareholder in the property company. “The number of linked units sold represents 6.79 percent of total securities issued by LLR. The transaction took place on 30 December 2022 and the total on- market sale value of the transaction was BWP 66,120,000.00,” reads part of the statement. Vunani Fund Managers acquired 18,375,145 of the 19,000,000 linked units on behalf of BPOPF, the 18,375,145 units represents 6.56percent of the total securities issued by the company. As a result, Grit holds 18.31 percent shareholding while BPOPF, through its various asset managers, holds 26.20 percent shareholding in the Company. Meanwhile, Pension Funds investment on the local market are set to soar, due to new Retirement Act increasing the limit of local investment by pension funds from 30 to 50 percent. Government has taken a bold step to increase the limit of pension funds investment locally, to avail funds for developmental purposes, contribute towards boosting the local economy and to create the much needed sustainable jobs. According to NBFIRA, the new pension fund rules will trigger the availability of more funds for development purposes due to the increase in the investment limit for local investments. “This is expected to contribute toward boosting the local economy and the creation of sustainable jobs,” said Boa Ntebele, NBFIRA Head of Communications and International Affairs. Ntebele said the trajectory of future trends on the local market will be influenced by a number of factors and assumptions informed by the prevailing domestic and international economic conditions. “Although retirement funds experienced some volatility in investment performance in the past two years due to COVID and other factors, it is noted that there has not been a precipitous decline in the value of pension assets.” Debswana Pension Fund ( DPF) has also applauded efforts being made to increase investment allocation of pension funds on the domestic market. “This is a positive development for the country,” Saone Balopi, DPF Strategy and Business Development Manager. She said the increased statutory allocation to local assets will compel asset owners and asset managers to seek suitable investment opportunities within the country. “This will further enhance efforts to consider a greater investment in local listed equities, domestic bond markets in addition to alternative assets in the unlisted sector, some of which include infrastructure, property and private equity,” said Balopi. She further highlighted that DPF remains keen to partner with the government and other investors in ensuring that its member’s investments grow while ensuring that there is development in the country.
“A key consideration can be drawn from the COVID- 19 crisis whereby key services including healthcare could only be availed locally as major parts of the world entered into an unprecedented global shutdown.” Balopi reiterated that the deployment of additional capital in Botswana could provide a much needed tailwind to domestic economic activity. “This will feed through support of asset prices and domestic investments including property, infrastructure and private investments. The increased issuance of government bonds and private sector bonds could also provide additional opportunities, which could offset some of the liquidity challenges faced by the market,” Balopi said. Sharing the same sentiments, BPOPF highlighted that the allocation increase says it is time to focus on Botswana and send a signal that private capital is prioritised for developing Botswana. “As the BPOPF, we are more than ready, we have been operating at 40 percent on local market and 60 offshore, so the change for us is moving 10 percent home,” said Moemedi Malindah, BPOFP Chief Executive Officer.
Malindah said infrastructure investments is one area that is ripe to house the additional capital and have the much needed impact in the economy.