VFEX answer to dilemma

With inflationary pressures emerging from monetary reforms that culminated in the return of the Zimbabwe dollar last year, pension funds have been calling for United States dollar-denominated investments to both protect and build on their contribution pools.

Pension funds typically have large amounts of money to invest and are the major investors in both listed and private property.

The local pensions industry is heavily invested in investment property and quoted equities (totalling around $50,89 billion) insofar as these are largely seen as value preserving assets.

The under-performance of some of these traditional investment portfolios in recent inflationary phases has necessitated new thinking on investment strategies.

Insurance and Pensions Commission (IPEC) Commissioner Dr Grace Muradzikwa has already highlighted that this shift in thinking is taking place. — Businessweekly.