Moroke Sekoboto
…as fund records M2 billion in investment returns …despite mounting global economic shocks
THE Public Officers’ Defined Contribution Pension Fund (PODCPF) recorded M2 billion in investment returns during the 2025/26 financial year, prompting Finance and Development Minister Retšelisitsoe Matlanyane to commend it for its resilience amid mounting global economic shocks.
Dr Matlanyane also praised the Fund for maintaining good governance, complying with laws and policies, improving service delivery and ensuring timely payment of retirement claims.
The Fund’s assets under management grew from M14.1 billion in 2025 to M16.4 billion in 2026.
These developments were highlighted yesterday during the Fund’s fourth Annual Member Engagement Forum (AMEF), held at Victory Hall under the theme: “Ipehe Leseling, Itlhophele Bokamoso, Re na le Uena” (Be informed, Prepare for the future, We are with you).
The theme encourages members to take an active interest in understanding their pension benefits and in preparing for their retirement. Members were also reminded of their right to information and their entitlement to understand the laws governing the Fund.
Addressing the gathering, Dr Matlanyane said the global economy had demonstrated surprising resilience during the year ended 31 March 2026, despite mounting geopolitical fragmentation, persistent trade tensions and major energy supply disruptions caused by conflict in the Middle East.
She said the Fund’s strong investment performance was particularly commendable given the difficult global economic environment.
Conflict in the Middle East disrupted shipments through the Strait of Hormuz, driving up energy prices and slowing the decline in inflation. Global real GDP growth during the period hovered around 3.2 percent, representing a slowdown from previous years.
“Global expansion lost momentum as governments had tight fiscal room to increase spending while delayed monetary policy easing weighed down advanced and emerging economies alike. Even though tariffs increased and some regions introduced policies to protect their own industries, trade did not fall as much as expected, as companies quickly found new supply routes,” Dr Matlanyane said.
She said global equities had nevertheless performed strongly during the reporting period, with most diversified global equity portfolios generating double-digit returns.
Developed markets, particularly the United States, made the largest contributions, while emerging markets also recorded positive, albeit more modest, gains.
Turning to the domestic economy, Dr Matlanyane said Lesotho had recorded modest growth during the period, supported largely by construction activities under the Lesotho Highlands Water Project Phase II.
The government finances had remained relatively strong, buoyed by Southern African Customs Union (SACU) transfers and water royalties.
However, she said the underlying drivers of economic growth remained weak, with limited private-sector expansion and persistent unemployment.
The textile industry, exports and household demand had also come under pressure from external economic conditions and domestic structural challenges.
“Overall, the economy was stable in the reporting period, but growth was slow,” she said.
Looking ahead, Dr Matlanyane said the global economic and financial market outlook remained positive, although significant uncertainties persisted.
These included geopolitical tensions, elevated public debt levels and trade policy disruptions, which could undermine global growth and investor confidence.
Locally, subdued external demand and reduced official development assistance were expected to weigh on economic prospects.
She said limited fiscal space and continued dependence on external financing would further constrain economic growth in the near term.
Also addressing the forum, the finance ministry’s Principal Secretary and PODCPF Board Chairperson Nthoateng Lebona said the 2025/26 financial year had been characterised by uncertainty and volatility in the global economic and investment environment.
She said financial markets continued to respond to changing monetary policy expectations, geopolitical tensions, inflationary pressures and shifting economic growth prospects.
Tariff measures and broader trade policies introduced by United States President Donald Trump had added another layer of uncertainty.
“Despite these challenging conditions, the Fund remained resilient and delivered strong investment returns. This performance reflects the benefits of a diversified investment strategy, prudent portfolio management and disciplined oversight by the Board.
“While markets will inevitably experience periods of volatility, the Fund remains focused on generating sustainable long-term returns while managing investment risks in the best interests of our members,” Ms Lebona said.
She also revealed that the Fund had once again received a clean audit opinion on its financial statements, describing this as an important endorsement of its financial management, transparency, accountability and internal controls.
Ms Lebona said the achievement was particularly significant given the scale and complexity of the Fund’s operations.
She added that the Board remained committed to strengthening the systems and governance arrangements needed to protect members’ retirement savings and safeguard the Fund’s long-term financial position.
Good governance, she said, remained central to the Fund’s operations, with the Board continuing to strengthen oversight of investments, benefits administration, compliance and organisational performance.
During the year, the Board approved several policies aimed at reinforcing institutional integrity and protecting the Fund against emerging governance and financial crime risks.
These included measures relating to risk management, anti-corruption, anti-money laundering and other ethical and compliance requirements.
“The approval and implementation of these policies demonstrate the Board’s commitment to fostering a culture of integrity, transparency, accountability and zero tolerance for corruption and financial misconduct.
“These measures are intended not only to strengthen compliance but also to reinforce the trust that members and other stakeholders place in the Fund,” she said.
Ms Lebona said the increasingly complex environment in which pension funds operated, characterised by global economic developments, geopolitical tensions, financial market volatility and technological changes, required the Fund to remain focused on its strategic priorities.
These included improving benefits administration, strengthening member engagement, enhancing financial sustainability and optimising investment management.
Meanwhile, the PODCPF Chief Executive Officer Mamotlohi Mochebelele said members remained at the centre of the Fund’s mandate.
She said the Fund had intensified its member education initiatives during the year to improve understanding of pension benefits, retirement planning, Fund operations and members’ responsibilities.
Through education sessions, engagements and targeted communication, the Fund had created opportunities for members to ask questions, understand their benefits and make informed retirement decisions.
“Member education is important in a defined contribution environment, where members’ retirement outcomes are influenced by contributions, investment performance, time to retire and individual financial decisions,” Mrs Mochebelele said.
She said the Fund would continue expanding and modernising its education programmes, including through greater use of accessible digital communication platforms.
The objective was to go beyond simply providing information and build an informed and engaged membership that understood the importance of retirement savings.
Mrs Mochebelele also revealed that the Fund had approved a five percent annual pension increase to cushion pensioners against rising living costs.
However, she acknowledged that claims processing remained a challenge, with only 76 percent of claims currently being paid.
Of retirement claims, 59 percent were settled within 60 days, four percent took between 60 and 90 days, while 14 percent took more than 90 days.
She said death claims generally took longer to process, mainly because of delays in receiving complete supporting documentation.
The harmonisation of retirement benefits was also underway, while allowing members early access to their retirement savings would require legislative amendments.
For his part, Stephen Mputi, who represented Public Service Minister Moeketsi Motšoane, said the forum provided an important platform for open engagement, improving members’ experiences and strengthening the Fund’s long-term sustainability.
He said the Fund should strive to become increasingly member-centred, efficient and sustainable.
Mr Mputi urged the Fund to continue working with stakeholders to protect members’ interests, deliver quality services and secure sustainable retirement outcomes.
He also called for a culture of accountability, professionalism and service excellence.
Members who attended the forum applauded the Fund’s efforts to improve service delivery while acknowledging that more still needed to be done.
