The Fund’s fixed interest allocation, or fixed interest portfolio, comprises bank term deposits, government securities and corporate loans, with a term equal to, or more, than 182 days to maturity, at the time of issue. As at 31 December 2018, the value
of Fixed Interest Portfolio was approximately 31.4% of the total investment portfolio, an increase from prior year due to a conscious effort to improve overall yields by moving excess cash into this asset class. The increase was offset by a reclassification of a shareholder loan to OPH Limited into equity.
This asset class is made up mostly of government securities and the Fund continues to monitor the market for opportunities to acquire government bonds at suitable yield levels. The Fund remains a regular participant in auctions of both long and short term government securities, subject to the yield on offer being suitable to the Funds requirements and view of risk. In addition to government securities, the asset class also includes investments in commercial loans for subsidiary companies construction projects and syndicated infrastructure loans.