Online Reporter
Zimpapers Business Hub
GOVERNMENT granted prescribed asset status to 11 applications valued at US$248,56 million in the half-year period to June 30, 2025, with the bulk of the projects aligned with the national development agenda.
Under prescribed assets, the Government requires investors, such as pension funds, to hold a certain number of investments in government-specified assets in the form of government or state-owned entities’ bonds.
At law, pension funds and insurance firms are required to invest at least 20 percent of their investment portfolio in prescribed assets, and the sector has been struggling to meet specified thresholds.
According to the Insurance and Pensions Commission (IPEC) half-year pensions report, the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, granted prescribed asset status to eleven applications.
“Projects granted prescribed asset status offer valuable opportunities for portfolio diversification, while encouraging investments that support national development and align with the objectives of the National Development Strategy 1 (NDS1).
“Therefore, the Commission urges pension funds to comply with the regulatory minimum threshold of 20 percent of total assets,” reads part of the report.
According to the report, the Old Mutual Life Assurance Company (OMLAC) had the highest figure of approved prescribed assets at US$109,3 million, with a focus on developmental Real Estate Investment Trust (OMLAC DREIT).
Peter Tanyanyiwa