NAPSA Investments

NAPSA's Investment Strategy and Performance

Home Investment Philosophy
Investments Objectives and Portfolio (2024)

The primary aim of the investments is to provide for the benefits of members of the Scheme. The investment approach of the Authority therefore recognizes both the short-term and long term objectives of the Scheme. These include:

  • Capital preservation

  • Security of the assets

  • Maximization of investment returns consistent with the acceptable levels of risk, liquidity considerations,

  • Liquidity

  • Risk diversification and,

  • Appropriate asset to liability matching

Investment Guidelines

The National Pension Scheme Act No. 40 of 1996 of the Laws of Zambia provides for investment of funds of the Scheme not immediately required to meet any charges or obligations in a range of assets. The primary aim of the investments is to provide four the benefits of members of the Scheme.

The Authority had its investment guidelines revised in 2017 as per the Investment Guidelines Statutory Instrument (SI) number 19 of 2017.

The following are the allowable investments as per revised Investments Guidelines:

  • Government Securities

  • Listed equities

  • Bank deposits

  • Listed corporate bonds

  • Non listed shares

  • Infrastructure

  • Collective Investment scheme

  • Viable socially and economically targeted investments

  • Direct real estate

  • Listed equities including underwriting

  • Special Purpose Vehicles, that is strategic companies created by the Authority itself

  • Underwriting of transactions

  • Green field investments

Prudential Principles

Assets of the Authority are invested in full compliance with the requirements of any other relevant statutory and regulatory body such as the National Pension Scheme Act No. 40 of 1996 of the Laws of Zambia, the Securities and Exchange Commission, Zambia Revenue Authority Bank of Zambia and the Pensions and Insurance Authority

Adherence to corporate governance principles especially those relating to conflict of interest and accounting standards as may.be adopted by institutions such as the Institute of Directors of Zambia and the Zambia Institute of Chartered Accountants.

Investments made are reflective of the Senior Management and the Board’s best investment decision and comply with the primary objectives of the Scheme. The following prudential investment guidelines are observed:

  • Ensure suitably qualified professionals are appointed to manage the Authority’s investments

  • Ensure enough liquidity and maximize investment returns consistent with acceptable levels of risk

  • Act prudently and in the interest of the beneficiaries and other key stakeholders

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Subsidiary Focus

Subsidiary Focus

  • NAPSA Hospitality Investment Limited (NHIL).

  • NAPSA Investments Holdings Company Limited (NIHCL).

  • Livingstone Market and Bus Station Management Company Limited (LMBSC).

  • Society House Development Company Limited (SBPHL).

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