Pula Fund

Summary:

Botswana is a country rich in Diamonds & Minerals with one of the fastest income per capita growth rates in the World. 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. 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.

Strategies and 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.