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This presentation at the Pension Conference by Victor J. Senye explores the pressure of pension investing, challenges in local markets, and the role of property investment in restoring faith in savings in Botswana. Discover the constraints and opportunities in navigating property investment scenarios, including key ingredients and government support needed. Learn why property investment is vital for income generation, capital appreciation, inflation protection, and economic development.
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PRESENTATION TO THE PENSION CONFERENCE VICTOR J. SENYE BOTSWANA INSURANCE FUND MANAGEMENT
WHAT IS THE OBJECTIVE • Highlight the pressure of pension investing • Challenges posed by local markets • Searching for growth and performance • Why property investment • Experience of Botswana
RESTORING THE FAITH IN SAVINGS • Why the faith? i) Responsibility to provide for someone’s future. ii) A conducive environment is critical. • Expectation to protect and grow portfolio. • Balance risk reward parameters. • Corporate governance.
CHALLENGES OF LOCAL MARKETS • Limited investment vehicles. a) Equity, Bonds, Cash • Dominance of Government in the economy. • Generally limited trading of markets. • Excess liquidity within the system.
PROPERTY INVESTMENT SCENARIOS • Key ingredients (Land, Capital, Market). • Land in need of a Market. • Market in need of Land. • Land and Market in need of Capital.
GENERAL CONSTRAINTS • Availability of serviced land. • Land tenure and legal framework. • Development approval processes. • Costs of construction and capacity.
CHALLENGES TO NAVIGATE • Property valuations. • Development risk. • Market risk. • Property asset management.
WHICH WAY TO GO • Increasing global trends towards listed property vehicles. • Government legislation necessary to support such activities. • Creation of tax efficient investment vehicles to minimise leakages to investors.
WHY PROPERTY • Income stream generation. • Capital value appreciation. • Good hedge against inflation. • Underpins economic development.