INVESTMENTS 

Generally the Fund has investments in the following areas:

1. Properties:

These include several office blocks, commercial and industrial properties, which are being let out competitively. These include: Kopje Plaza, Runhare House (Tel.One HQ), Causeway Building, OK Bazaars HQ etc. The Fund has an 18% interest in the Joina Centre. The Joina Centre is an upmarket property which when completed will have office and retail space with three basements which can accommodate 500 cars. The property is expected to be completed during 2010. The delay on completion of this project, which has taken over 10 years, was caused by shortage of foreign currency. The Fund will continue to explore opportunities in the Property sector to hedge against inflation.

2. Money Market Assets:

These involve a variety of money market instruments held with the various financial institutions. This portfolio is reviewed daily to ensure the best returns. Currently the Fund’s money market portfolio is predominantly made up of Treasury Bills, these are gilt edged securities issued by the Central Bank. The move to invest predominantly in Treasury Bills was necessitated by the Financial services sector crisis of 2003 which resulted in a number of Financial institutions folding.

3. Statutory Stock:

These are prescribed assets which the Fund is required by law to hold which currently stands at 35% of total assets. Through the Zimbabwe Association of Pension Funds the Fund is also negotiating for a reduction of the ratio held to enable better exposure to more profitable instruments.

4. Equities:

The Fund participates in both quoted and unquoted shares on a selective basis. The returns from this type of investment have been generally good over the last 10years. Over the last 10 years the returns from this asset class have more than surpassed inflation.

The Fund generally uses the Active Portfolio Management strategy. This strategy involves buying and selling of shares on a continual basis to take advantage of share price volatility. To counter the negative effects of inflation on investments the Fund through the Zimbabwe Association of Pension Funds is involved in negotiating with the government to be granted permission to invest outside the country.