POLICY

THE TRUST'S INVESTMENT POLICY

The Trust's Investment Policy provides guidelines for investment of the Pension Funds in various sectors of the Ghanaian economy.

The Investment Policy of the Trust takes into consideration the under-mentioned major requirements of investing Social Security Funds:

a. Safety - Investments should be in low risk ventures

b. High Yield - The returns on the investment should be appreciable.

c. Liquidity - Ensuring that a certain level of investment is maintained in cash assets to enable the Trust meet its obligations when they are due.

d. Maintenance of Assets Value - Ensuring that the value of the investments are not eroded by inflationary economic environment.

e. Harmony with Public Interest - Ensuring that some of the investments are geared towards the achievement of national economic development programmes as well as providing physical benefits to the public.

f. Diversification - Ensuring that the portfolio mix is adjusted in the light of changing environmental circumstance.

Investment Objectives

In the development of the policy guidelines, the two major objectives with the associated sub-objectives are:

a. To maintain a long term optimum Fund ratio

Through realisation of real returns on investments

* Maintains a portfolio mix which ensures low risk on investments

* Ensure adequate liquidity to enable the Trust meet its obligations when due.

b. To make investments which are development oriented:-

* Though visible benefit (e.g.. Housing, Transportation)

* Contribution to Economic Development (e.g.. Export Processing Zones, Tourism, Production)

* Galvanize investment in the informal Sector (e.g.. Construction of Industrial Estates and Markets)

* Conceptualise and initiate socially oriented investments with reasonable returns (e.g.. Building Hospitals and Recreational Facilities)

Investment Portofolio

The investment of the Trust have been grouped into:

a. Fixed Income Investments

These involve investment whose returns are pre-determined or known at the time of making the investment. The components of this portfolio are:-

i. Treasury Bills/Notes

ii. Fixed Deposits Call Monies

iii, Registered Stocks

iv. Social Security Bonds

v. HFC Index-linked Bonds

vi. Students' Loan

Non-Fixed Income Investment

Investment in this category have long gestation periods and are more susceptible to fluctuations in the economy's performance. How ever, these investments which can lead to appreciation in the values of the investment asset are development oriented and can assist with job creation.

The following can be classified under this portfolio:

* Properties

i. Commercial

ii. Residential

* Equities