An investigation of real estate as an asset class for pension funds portfolio investment in Botswana

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dc.contributor.advisorOrdor, Uche
dc.contributor.authorMapira, Fungisai
dc.date.accessioned2025-03-05T12:16:32Z
dc.date.available2025-03-05T12:16:32Z
dc.date.issued2024
dc.date.updated2025-03-05T11:56:55Z
dc.description.abstractPension funds hold the largest share in global capital markets and prudently invest in diverse income-generating assets to meet their current and future liabilities. Real estate is held in pension fund mixed asset portfolios to match long-term liabilities. The viability of real estate as an investment asset is defined by its qualities of hedging against inflation, portfolio diversification, risk reduction, capital appreciation and steady income flows. The current pension fund regulatory framework in Botswana allows for a minimum of 30% of funds to be invested locally where real estate holds a 2% investment stake. The study seeks to investigate the viability of real estate as an asset class for pension funds in Botswana and ascertain factors which influence its allocation in their portfolios. A qualitative multiple case study approach was used to gather data through semistructured interviews of five key stakeholders from five Botswana pension funds. Interviewees were asked questions centered around their Organisations' investment strategies and interest towards real estate assets. Pattern matching was used for data analysis by matching theoretical patterns to empirical findings. The findings revealed that real estate is a viable asset class for pension funds in Botswana and is incorporated in their investment strategies. In addition, there is increased investment appetite towards real estate though the local market offers limited options resulting in high and expensive bids against the few attractive assets. This calls for the generation of more viable investment options in the local real estate sector and the Botswana government has initiated investment regulations for pension funds to invest more capital within the Botswana market by the year 2050.
dc.identifier.apacitationMapira, F. (2024). <i>An investigation of real estate as an asset class for pension funds portfolio investment in Botswana</i>. (). University of Cape Town ,Faculty of Engineering and the Built Environment ,Department of Construction Economics and Management. Retrieved from http://hdl.handle.net/11427/41116en_ZA
dc.identifier.chicagocitationMapira, Fungisai. <i>"An investigation of real estate as an asset class for pension funds portfolio investment in Botswana."</i> ., University of Cape Town ,Faculty of Engineering and the Built Environment ,Department of Construction Economics and Management, 2024. http://hdl.handle.net/11427/41116en_ZA
dc.identifier.citationMapira, F. 2024. An investigation of real estate as an asset class for pension funds portfolio investment in Botswana. . University of Cape Town ,Faculty of Engineering and the Built Environment ,Department of Construction Economics and Management. http://hdl.handle.net/11427/41116en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Mapira, Fungisai AB - Pension funds hold the largest share in global capital markets and prudently invest in diverse income-generating assets to meet their current and future liabilities. Real estate is held in pension fund mixed asset portfolios to match long-term liabilities. The viability of real estate as an investment asset is defined by its qualities of hedging against inflation, portfolio diversification, risk reduction, capital appreciation and steady income flows. The current pension fund regulatory framework in Botswana allows for a minimum of 30% of funds to be invested locally where real estate holds a 2% investment stake. The study seeks to investigate the viability of real estate as an asset class for pension funds in Botswana and ascertain factors which influence its allocation in their portfolios. A qualitative multiple case study approach was used to gather data through semistructured interviews of five key stakeholders from five Botswana pension funds. Interviewees were asked questions centered around their Organisations' investment strategies and interest towards real estate assets. Pattern matching was used for data analysis by matching theoretical patterns to empirical findings. The findings revealed that real estate is a viable asset class for pension funds in Botswana and is incorporated in their investment strategies. In addition, there is increased investment appetite towards real estate though the local market offers limited options resulting in high and expensive bids against the few attractive assets. This calls for the generation of more viable investment options in the local real estate sector and the Botswana government has initiated investment regulations for pension funds to invest more capital within the Botswana market by the year 2050. DA - 2024 DB - OpenUCT DP - University of Cape Town KW - Property Studies LK - https://open.uct.ac.za PB - University of Cape Town PY - 2024 T1 - An investigation of real estate as an asset class for pension funds portfolio investment in Botswana TI - An investigation of real estate as an asset class for pension funds portfolio investment in Botswana UR - http://hdl.handle.net/11427/41116 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/41116
dc.identifier.vancouvercitationMapira F. An investigation of real estate as an asset class for pension funds portfolio investment in Botswana. []. University of Cape Town ,Faculty of Engineering and the Built Environment ,Department of Construction Economics and Management, 2024 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/41116en_ZA
dc.language.rfc3066Eng
dc.publisher.departmentDepartment of Construction Economics and Management
dc.publisher.facultyFaculty of Engineering and the Built Environment
dc.publisher.institutionUniversity of Cape Town
dc.subjectProperty Studies
dc.titleAn investigation of real estate as an asset class for pension funds portfolio investment in Botswana
dc.typeThesis / Dissertation
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMSc
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