Pula Fund

Pula Fund

Republic of Botswana US$ 6.9 Billion
Established: 1994
Transparency Rating: 6
View Sovereign Fund Transaction Data
View Asset Allocation		 Origin: Diamonds and Minerals
Firm Investment Style: Index
Entity Structure: Fund
Population Est.: 2.13 million – 2013
Wealth Per Capita Est.: $3,243
Summary
Botswana is an African country rich in diamonds and minerals. The Pula Fund which holds a long term investment portfolio was established under the Bank of Botswana Act in 1994 and it is part of the foreign exchange reserves. Its goal of preserving a portion of the income from diamond exports for future generations.

Background
By creating a separate investment portfolio, it was possible to provide more appropriate, longer-term investment considerations in the guidelines for its management. Foreign exchange reserves that are in excess of what is expected to be needed in the medium term are transferred to the Pula Fund and invested according to these investment guidelines.

Strategy & Objectives
It is exclusively invested in foreign currency denominated assets. The fund invests in public equity and fixed income instruments in industrialized and developed economies. The investment objectives are based on sustaining purchasing power of the reserves and maximizing returns within an acceptable level of risk.

Governance
The Bank of Botswana solely responsible for reserves management activities.

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