Investment Strategy Overview

The PODCPF has a defined contribution structure. However, there is a defined benefit underpin for those qualifying members that were already in service when the Fund was established in April 2008.

The Fund’s Investment Strategy has therefore been developed by taking into account this complex liability profile as well as the long-term capital market expectations.

With input from the Fund’s professional advisors, the Actuary and the Investment Consultant, the Board of Trustees have established the Fund’s long-term investment target intended to achieve sufficient post-retirement income for the Fund’s membership.

The investment target for the Fund is to earn returns of at least inflation + 5% net of investment management fees over rolling evaluation periods of five to seven years. Inflation is as measured by the Lesotho Consumer Price Index.

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