INVESTMENT MANAGEMENT POLICY
Section 5 (d) of the Zanzibar Social Security Fund Act Number 2 of 2005
prescribes one of the core functions of ZSSF as being "To invest
the moneys collected in any viable ventures as Board may consider appropriate”.
In order to carry out this function, the Fund developed a comprehensive
Investment Policy as the guideline for undertaking its various investments.
The overriding investment objective of Zanzibar Social Security Fund
is to achieve a funding level position of 100 percent whilst minimising
the level and volatility of contributions. The investment strategy of
Zanzibar Social Security Fund is structured with clear reference to this
overriding investment objective.
Zanzibar Social Security Fund aims to collect and generate funds that
shall be sufficient to meet all benefit obligations of Zanzibar Social
Security Fund on a continuing basis.
i.] To set forth an investment structure for managing all Fund assets.
This structure includes various asset classes, investment management
styles, asset allocation and acceptable ranges that in total are expected
to produce a sufficient level of overall diversification and total investment
return over the long term.
ii.] To provide guidelines for each investment portfolio that control
the level of overall risk and liquidity assumed in that portfolio, so
that all Fund assets are managed in accordance with stated objectives.
iii.] To encourage effective communication between the Board, Management
and any investment consultants the Fund may contract.
iv.] To establish formalized criteria to monitor, evaluate and compare
the performance results achieved by Management on regular basis.
v.] To maintain a fully funded status with regard to accumulated benefit
obligations, and to achieve a fully funded status with regard to the
projected benefit obligations.
vi.] To have the ability to pay all benefits, and expense obligations
vii.]To maintain a funding cushion for unexpected developments, possible
future increase in benefit structure and expense levels, and a reduction
in the expected return on investment or interest rate assumptions.
iii.] To maintain flexibility in determining the future level of contributions.
ix.] To control costs of administering the Fund and managing the Investments.
x.] The investment Policy of the Fund takes into consideration the
following investment guiding principles of investing social security
||ZSSF shall invest in areas that guarantee safety of
the Fund's capital.
|| The returns on investment should be appreciable.
||ZSSF will ensure that sufficient resources are held in short-term
investments to enable the Fund to meet its obligations as they become due.
||Economic and social utility
||It is in the interest of the Fund to ensure that some of the funds
are invested in such a way that they contribute to improve the health
and education conditions, or the standard of living of the members.