Investments
Investing prudently for long-term security.
Mukuba Pension Trust invests member funds with a single objective: to generate the returns needed to meet our long-term obligations to members — safely, prudently, and transparently.
Our approach
Investment philosophy
The Board of Trustees is responsible for the fund's investment strategy. The strategy is documented in the fund's Investment Policy Statement (IPS), reviewed at least annually, and designed to balance the need for long-term growth with the requirement to preserve capital and meet near-term benefit obligations.
For the DB section, the fund adopts a liability-driven investment approach — seeking to match the characteristics of its assets to the long-term pension obligations it has promised members. Growth assets are held to meet funding shortfalls; matching assets track the interest-rate sensitivity of the liabilities.
For the DC default investment option (the Balanced Growth Fund), the fund targets real returns of inflation plus 4% per annum over rolling five-year periods, using a diversified multi-asset strategy managed by independent professional investment managers. Members approaching retirement are guided towards lower-risk strategies through the fund's lifecycle glide path.
Prudent management
All investment decisions are made in accordance with the prudent investor standard, consistent with the requirements of the Pension Scheme Regulation Act and the PIA's investment guidelines.
Diversification
The fund's assets are diversified across asset classes, geographies, and sectors to reduce concentration risk and smooth returns over the long term.
Member focus
Investment decisions are driven entirely by what is best for members — not by the interests of employers, managers, or other third parties.
Transparency
The fund publishes its investment performance in the annual report and on this website. Audited financial statements are filed annually with the PIA and are available in our Resources section.
Performance
Annual investment returns
The table below shows the fund's historical investment returns versus benchmark. All figures are net of fees and subject to independent audit. Past performance is not a guarantee of future returns.
| Year | Fund Return | Benchmark |
|---|---|---|
| 2023 | 14.2% | 12.8% |
| 2022 | 8.7% | 7.4% |
| 2021 | 16.4% | 13.9% |
| 2020 | 5.1% | 4.8% |
| 2019 | 18.9% | 15.2% |
Returns are net of fees. Benchmark: Zambia Composite Benchmark (CPI + 4% p.a.). Source: Mukuba Pension Trust audited financial statements.
Portfolio
Asset allocation
The fund's assets are broadly allocated across five asset classes, in accordance with the Board's approved Investment Policy Statement and the PIA's prescribed asset allocation guidelines.
Listed shares on the Lusaka Securities Exchange; core growth asset.
Zambia Government securities providing inflation-linked and fixed income returns.
Commercial and industrial property in the Copperbelt and Lusaka regions.
Short-term deposits and treasury bills; liquidity buffer for benefit payments.
Diversified exposure to global equity markets via approved offshore funds.
See our full annual report
Audited financial statements and investment performance details are published in our annual report.