Motor Vehicle Accident Fund (MVA) has increased its shareholding in the equity market by 6.1 percent for the year ended 31 December 2012.
The company revealed in its latest annual report that its locally listed equities were valued at P820.4 million by the end of December 2012, representing an increase of P47.7 million from the P772.7 million shares it owned in December 2011. The increase was attributed to the fund increasing its shareholding in listed companies and the increase in share price of the companies which MVA has a stake in. During the reporting period, the fund, which is led by Cross Kgosidiile, purchased shares in First National Bank Botswana (FNBB), Choppies and New African Properties (NAP) worth P6.9 million. After Botswana Public Officers Pension Fund (BPOPF), which owns majority shares in companies listed on the Botswana Stock Exchange (BSE), MVA is the second largest investor on the local equity market.
However the fund has also invested in local unlisted companies, which comprise holdings in KYS Investments, MRI Botswana and Botswana Building Society (BBS). The market value of the equities is currently valued at P171.9 million as at December 31st 2012, after increasing from P119 million recorded by December 2011. Currently Standard Chartered Bank Botswana, Botswana Insurance Holdings Limited, Barclays Bank of Botswana, First National Bank Botswana, Sechaba Brewery Holdings jointly account for 74 percent of MVA’s local equity holding. MVA owns 17 percent stake in FNBB, 19 percent shareholding in Barclays Bank of Botswana, 12 percent in Standard Chartered Botswana and 13 percent in BIHL. The fund further has a 13 percent stake in beer brewing giant, Sechaba, 8 percent in second largest retail supermarket Sefalana and another 8 percent in various companies on the BSE. In general sectoral investments, MVA owns 48 percent in commercial banks, 24 percent in the retail sector while 14 percent of shares are in the financial institutions.
Another 7 percent is in property while 5 percent of its shares are held in the energy sector. MVA has also invested in government, parastatals and corporate bonds, both fixed and variable rate bonds. The local fixed income segment currently has over P323 million. MVA’s offshore investments, managed by Blackrock Investment Management and Investec Asset Management are also on the rise. Investments managed by Blackrock increased to P387.4 million by December 2012 from P334.5 million. Investment managed by Investec also increased to P392 million from the P339.5 in 2011. In total, MVA’s offshore investments are currently valued at over P779.9million increasing from P674 million.