Trustees advised to keep investment strategy relevant

Johan Henn, Executive Director of Novare Actuaries and Consultants.

SA asset consultant helps Botswana public retirement fund earn international recognition.

To deliver on their duty to maximise risk adjusted returns for members, retirement fund trustees need to revisit investment strategy to ensure they’re in a position to exploit new opportunities and to assess and mitigate changing risks.

Johan Henn, Executive Director of Novare Actuaries and Consultants, the independent investment consultancy in the Novare group, said: “Investment policies need to be updated to take into account changes to a fund’s asset and risk profiles, as well as its liabilities in the form of promises to employees and pensioners.

“Where assets are concerned, the investment universe evolves constantly as product providers develop new options, some more innovative than others.”

Novare Actuaries and Consultants are the investment consultants to the Botswana Public Officers Pensions Fund (BPOPF), which was awarded the African Pension Fund Initiative of the Year Award in view of its new investment strategy at the Africa investor CEO Institutional Investment Summit 2014 in New York on 22 September.

The summit, held in association with the New York Stock Exchange, is a platform for US and global institutional investors and pension funds to engage African funds and capital market leaders on investment opportunities in African markets. It profiles African market opportunities to the international institutional investment community and African national pension funds.

Novare Actuaries and Consultants advised the BPOPF on its recently revised investment strategy and investment policy statement.

“The new strategy aligns the fund with global best investment practices and opportunities. As the fund’s investment advisors, we look forward to actively exploring new avenues in conjunction with the appointed asset managers, for the benefit of members,” said Mr Henn.

Lesedi P Moakofhi, Acting Chief Executive Officer and Principal Officer of the BPOPF, commented: “Well done to Novare, and the BPOPF Investment team, the brains behind the initiative who worked with us to put the new strategy in place.”

In terms of the rules of the BPOPF, the board of trustees delegates to the investment committee responsibility for, amongst others, drafting the investment policy statement. The committee is able to recommend changes as circumstances demand, and is responsible for identifying risks associated with investments, and advising on how these should be managed.

The Botswana Public Officers Pensions Fund was registered in 2001 following a government decision to change the Public Officer’s Pension arrangement from a defined benefit to a defined contribution scheme. Novare was appointed as the fund’s asset consultant in 2012.