Debswana Pension Fund (DPF), Botswana’s second-largest pension fund, reported that its assets under management rose to P11.9 billion in the second quarter of 2025, up from P11.5 billion in the previous quarter, according to its latest report. Despite heightened market volatility and challenging economic conditions, the diversified fund delivered a strong quarterly return of 5.35 percent, achieving growth even after accounting for notable member exits during the period under review.
“Debswana Pension Fund remains cautiously optimistic heading into the next few quarters,” the fund said. “Market performance will largely hinge on the outcomes of global tariff negotiations, trade agreements, and inflationary pressures.” The fund noted that recent market volatility appears to be driven more by geopolitical tensions than by fundamental or structural weaknesses, adding that favourable trade deals, as has been the case so far, would support a positive outlook for global markets, while the absence of such agreements could trigger escalating trade wars and pose risks to economic growth and inflation.
Botswana equities recovered strongly during the quarter, although gains were concentrated in a handful of counters in the financial and consumer staples sectors. Global bond markets also delivered positive returns despite elevated geopolitical risks stemming from U.S. tariff actions, diverging central bank policies, concerns over the long-term viability of the United States’ fiscal position, and tensions in the Middle East. Performance was supported by easing inflation, accommodative monetary policies, a flight to quality, and tightening credit spreads.
The top-performing asset class for the fund in the quarter was Africa equities, which rose by 17.50 percent in pula terms. This was followed by emerging market equities, which advanced 10.95 percent, and global equities, up 8.68 percent. Botswana equities rose by 8.22 percent, while global bonds gained 1.79 percent, Botswana property 1.33 percent, Botswana cash 0.99 percent, and global property 0.25 percent. Africa private equity, emerging market bonds, Botswana bonds, China funds, and global cash were in negative territory for the quarter, declining by 0.11 percent, 0.18 percent, 0.50 percent, 2.13 percent and 2.79 percent, respectively.
Across its performance channels, the fund’s market channel increased by 5.86 percent, the conservative channel rose by 5.20 percent, and the pensioner channel generated 4.70 percent. On a twelve-month basis, the fund recorded overall positive returns, demonstrating resilience amid global uncertainty.
