Investment Guidelines

The Public Officers’ Defined Contribution Pension Fund shall develop and adhere to an investment policy consistent with the provisions of the legislation governing the Fund and shall be reviewed at least once every three years. This policy provides for a risk management process that identifies, measures, and mitigates investment risks; a mechanism for ensuring that assets and liabilities are managed in a consistent manner; the processes relating to investment decisions; as well as the procedure for the appointment and termination of asset managers and other service providers related to the Fund’s investments.

The Fund shall comply with the entity and asset class limits set out in Schedule 1 of the Pension Funds (Investment) Regulations, 2020 and shall be subject to the Exchange Control Regulations, 1989, which set out the maximum assets the Fund can invest outside the Common Monetary Area. Currently, this jurisdictional limit is 25%.

The assets of the Fund may not be invested in derivatives for speculative purposes. Furthermore, in line with Section 6(1) of the Pension Funds (Investments) Regulations, the Fund strives to invest a minimum of 30% of its assets in Lesotho.

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