What's in BPOF investment portfolio

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Over the past five years, BPOPF has maintained a growth-oriented, equity-heavy portfolio, with most assets invested outside Botswana. As of early 2022, roughly two‐thirds of pension fund assets (around 62.8%) were held offshorebankofbotswana.bw, and about 65% of the portfolio was in equities (both domestic and foreign)bankofbotswana.bw. By late 2023, BPOPF’s CEO noted that fixed‐income (bonds) were still underweight (only ~P9.2 bn of ~P100 bn AUM)investormail.co.bw, while local equities and real‐asset investments were rising. Over the period to 2025, the fund has gradually increased its domestic allocation (local equities, bonds, cash, property), in response to new rules requiring 50% local investment by 2027investormail.co.bw. For example, local equities grew to P16.0 bn in FY2023/24 (from P13.0 bn the prior year), businessweekly.co.bw. Despite this shift, the remainder of the fund remains largely global – diversified across North America, Europe and Asia via international equity and bond mandatesdocuments1.worldbank.orgbankofbotswana.bw. BPOPF also has meaningful allocations to private markets (private equity, infrastructure, real estate) both domestically and abroad, though detailed breakdowns are not publicly released.

• Equities: Historically ~60–65% of assetsbankofbotswana.bw. This includes Botswana-listed stocks and a larger pool of foreign equities (virtually all offshore exposure is in global equity fundsdocuments1.worldbank.org).

• Fixed Income (bonds): Relatively low, roughly 10–15%. As of late 2023, only about P9.2 bn was in bonds (primarily government securities), leaving underinvestment vs. its ~P100bn AUMinvestormail.co.bw. BPOPF is actively seeking to raise bond allocation in line with liability matching.

• Alternatives (real estate, infrastructure, private equity): The remainder (~20–30%) is in real assets and private equity. BPOPF has invested in local property and infrastructure projects and seeded Botswana-focused private equity (see below).

The table below illustrates approximate asset‐class allocations in key years (sources as cited):

Sources: BoB Financial Stability Reportsbankofbotswana.bw and press releasesinvestormail.co.bwbusinessweekly.co.bw.

Geographic Allocation

BPOPF has historically held the majority of its assets outside Botswana, but domestic investment has been rising. In March 2022, roughly 37% of pension assets were local versus 63% offshorebankofbotswana.bw. By late 2024–2025, the domestic share of all pension funds had climbed to ~42–45%mmegi.bw, driven by BPOPF’s increased local equity and bond purchases. (NBFIRA now mandates a phased move to 50% local by 2027investormail.co.bw.) In practice, this means BPOPF’s domestic allocation (Botswana government bonds, BSE-listed stocks, local cash and property) is roughly 40–45% of the fundmmegi.bw, up from the low 30s earlier in the decade. The remaining ~55–60% is held abroad: about 80% of BPOPF’s offshore assets are in international equitiesdocuments1.worldbank.org. These global investments span major markets (the US, Europe, and the Asia-Pacific) via international equity funds. A smaller slice of offshore assets is in foreign bonds and real assets. BPOPF also maintains some exposure to other African markets (for example, via regional infrastructure funds managed by Harith and others), but this is a relatively minor portion of its portfolio.

Notes: “Botswana” includes all domestic investments (government bonds, local equities, cash). “Offshore” includes all foreign and regional exposuresbankofbotswana.bwmmegi.bw.

Portfolio Shifts and Rebalancing

During 2020–25, BPOPF gradually repatriated assets into Botswana as regulation changed. In 2023–24 its policy emphasized larger holdings in local equities and government bonds (e.g., targeting Botswana property and infrastructure) to meet the new 50% onshore rulebusinessweekly.co.bwinvestormail.co.bw. Conversely, the fund deliberately reduced idle cash and sought to raise fixed-income holdings (Malindah noted that about P1.2 bn cash was uninvested in 2023, and fixed‐income targets were being underusedinvestormail.co.bw). Overall, the strategic shift is from a pure growth focus toward a more balanced portfolio: earlier in the period, the equity allocation was highest, but by 2025, the fund was reinforcing bonds and income-generating assets to stabilize returns for retirees. BPOPF’s incubation policy (approved 2016) has also led to reallocating roughly BWP 5 billion into emerging Botswana-based fund managers, creating a stable of local portfolio managersbpopf.co.bw.

Investment Partners and Managers

BPOPF works with a broad range of investment managers, both domestic and international. Its published materials and news reports indicate mandates with local firms (e.g., BIFM, Milltrust) and global managers (e.g., Harding Loevner, Fundsmith, Morgan Stanley, Ninety One, Allan Gray, Sarasin) as well as specialized funds (Harith for African infra, Rubrics for Namibia, etc.). Many of these names are listed on BPOPF’s website and cited in press releases. For example, the fund’s Active Member and Deferred Pensioner portfolio is largely run by international equity/income managers, while its Pre-retirement and Pensioner funds have more conservative mandates often handled by local or regional managers. (The exact split of assets under each manager is not publicly disclosed.)

Policy and Strategic Allocation Changes

Key policy changes during 2020–25 have reshaped BPOPF’s strategy:

• Retirement Funds Act (2022) and new Pension Rules – Instituted in 2023, these require pensions to invest gradually up to 50% of assets in Botswana by 2027investormail.co.bwmmegi.bw. BPOPF’s board responded by boosting local equity and bond holdings.

• Incubation Policy (2016, ongoing) – To develop the local asset management industry, BPOPF committed ~BWP 5 billion to emerging Botswana fund managersbpopf.co.bw. This has increased allocations to locally-run funds across asset classes.

• Strategic Rebalancing – In the late 2010s, BPOPF emphasized high-growth assets (global equities and alternatives) to maximize returns. In the 2020–25 period, it began shifting some weight to “lower-risk” assets (government bonds, cash equivalents, and annuity portfolios) as part of longer-term liability management. These gradual rebalances have been communicated in annual reports and press briefings (e.g,. increasing domestic property exposurebusinessweekly.co.bw).

Summary: Over 2020–2025, BPOPF’s portfolio remained equity-heavy and globally diversified, but with a clear trend toward greater domestic investment. At end‐2024 the fund’s allocation was roughly 60–65% equities (both local and foreign), ~10% fixed income, and the balance in real assets and alternativesbankofbotswana.bwinvestormail.co.bw. Geographically, Botswana allocations rose from ~37% in 2022 to ~45% by 2025bankofbotswana.bwmmegi.bw. Major investment partners include both leading global managers and Botswana-based firms, reflecting a diversified strategy.

Sources: Official BPOPF publications and speeches, Bank of Botswana financial reportsbankofbotswana.bwdocuments1.worldbank.org, and reputable Botswana financial news coverageinvestormail.co.bwbusinessweekly.co.bwmmegi.bw.