ZEIPF Invest in various asset classes that are meant to generate returns for the members. The investments are guided by the Investment Policy Statement. The following are the assets that the Fund invest in;
Money Market Investments
The money market is where financial instruments with high liquidity and short maturities of up to one year are traded. Examples of short term investments include Negotiable Certificates of Deposits, Commercial Paper, and Bankers Acceptances. The investments offer a return in the form of interest income for the investment period and pays back the capital invested on maturity date. Money market returns are generally lower than equities and properties.
Fixed Income Securities /Bonds
A bond is a long term debt instrument issued by the government or corporates when raising money for their projects. The bonds offer returns to the investor by way of a fixed interest rate.
Examples of bonds are Government bonds, Municipality Bonds, Corporate Bonds and Treasury Bills.
Equities investments involve buying shares of publicly held companies.
The main area invested in, is the listed companies on the Zimbabwe Stock Exchange. The Stock Exchange is an organized market where buyers and sellers transact on shares. The equities are said to be volatile in the short term which means capital invested can be lost especially if there is a forced sale. Over the long term equities tend to outperform all the other asset classes as well as inflation.
The Fund invests directly and hold diversified property portfolio in retail, commercial or offices, hotels and industrial sectors of the economy.
Properties provide a good hedge against inflation thereby preserving the value as property values and rental income tend to rise with rise in inflation.