Online Reporter
Nelson Gahadza
THE Insurance and Pensions Commission (Ipec) approved prescribed asset instruments worth US$199 million in the first quarter of 2025, offering pension funds investment opportunities for portfolio diversification.
Prescribed asset instruments are financial assets, like bonds or securities, that governments require certain institutional investors, such as pension funds, to hold as part of their portfolio.
While the instruments are typically issued by the Government, local authorities, or quasi-government organisations, they can also be granted to specific private sector projects, like infrastructure or renewable energy initiatives, to encourage investment in those key areas.
According to Ipec’s 2025 first quarter pensions report, approved prescribed assets offer an investment opportunity for portfolio diversification while promoting investments in projects that support national growth and align with the National Development Strategy 1 (NDS1).
“Consequently, the commission continues to encourage pension funds to invest in projects or products with prescribed asset status to meet the regulatory minimum requirement of 20 percent of total assets.
“While due diligence is conducted during the appraisal of prescribed asset applications, the ultimate responsibility lies with pension funds to carry out thorough due diligence before investing pensioners’ funds in such projects,” reads the report.
Ipec added that ongoing monitoring of project performance in line with agreed investment terms remains crucial.
