Pension funds direct most investments into properties

Under the Act, IPEC is empowered to “negotiate agreements with foreign authorities to cooperate in investigations, enforcement, coordination and the harmonisation of laws, procedures and standards”.

Business Reporter

ZIMBABWEAN pension funds continue to concentrate their assets in investment properties, whose value surged by 47 percent to US$1,14 billion as of March 31, 2025, compared to the quarter ended December 2024, according to the latest data from the Insurance and Pensions Commission (IPEC).

The growth was primarily driven by fair value gains, IPEC said in the pension report for the first quarter of 2025.

During the period, the investment properties constituted 46 percent of their total asset portfolio.

Analysts say the “dominant position of properties within the pension sector’s holdings reflects a continued preference for real estate as a key investment avenue for long-term capital preservation and growth.”

Quoted equities experienced a marginal increase of 0,4 percent in US dollar terms, rising from US$463,7 million at December 31, 2024, to US$465,56 million by the end of March 2025.

Despite the uptick in value, the share of quoted equities within the total asset portfolio declined from 21 percent to 19 percent over the same period.

Conversely, investments in unquoted equities demonstrated a more robust performance, increasing by 33 percent to US$105,06 million

Overall, investment properties, quoted equities, and prescribed assets collectively accounted for 76 percent of the total asset portfolio across the pension sector as of March 31, 2025.