The Pula Money Market Fund managed by Botswana Insurance Fund Management (Bifm) achieved a return of 2.04% in the final quarter of 2023, surpassing the benchmark return of 0.15%.
Over a 12-month period, the Fund delivered a return of 8.39%, outperforming the benchmark by 778 basis points, as the benchmark yielded 0.61% during the same timeframe.
The Fund primarily invests in Call and Fixed deposits, as well as Treasury Bills. Despite its notable outperformance, Bifm observed a slight decrease in yields of Botswana Treasury Bills (T-Bills), culminating in the last T-Bill auction of the year. The Fund manager commented on these developments, noting the sustained pressure on money market yields offered by both commercial banks and non-bank institutions, driven by the prevailing lower interest rate environment.
Furthermore, Bifm highlighted the strong banking liquidity throughout the quarter, with liquidity standing at P3.1 billion by December 2023. This robust liquidity position was largely attributed to heightened end-of-year activities, prompting commercial banks to maintain higher liquid assets to meet festive season liquidity demands.
Bifm said this fund is suitable for investors who want relatively high yields but need their funds to remain liquid.
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