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Read
about the policies that guide the Board's Investment
committee in making investment decisions. |
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| Investment Management Governance Structure: |
The key actors/parties involved in the investment management process include the Board of Directors, Risk Management Committee (RMC), Investment Planning Committee (IPC), Management Investment Committee (MIC), Head, Investment Management, Investment Managers and Fund Research & Planning Lead, Head, Operations, Head, Management & Control and Risk Management Lead.
The Board of Directors has broad oversight responsibilities over investment activities in Trustfund and ensures that there are adequate systems, policies and procedures in place for safeguarding the contributions and assets of customers. The Investment Planning Committee (IPC) is a Board committee that acts on behalf of the Board in carrying out its oversight activities. |
| Investment Guidelines |
Allowable Investment
The company’s portfolio investments is subject to and limited to the categories of investments allowed by the National Pension Commission (PenCom) as stated by statute (Pension Reform Act 2004) and guidelines issued by the Commission.
Subject to section 73 of the Pension Reform Act, Funds-Under-Management (FUM) are invested in the following instruments: |
- Cash Equivalents: Treasury Bills issued or guaranteed by the Federal Government and the Central Bank, Commercial Papers, bank deposit notes and bankers’ acceptances issued by licensed banks and discount houses.
- Fixed Income Securities: Bonds and other securities issued or guaranteed by the Federal Government; and Bonds, debentures, redeemable preference shares and other debt instruments issued by corporate entities and listed on a Stock Exchange registered under the Investments and Securities Act 1999; and Bonds and other debt securities issued by listed companies.
- Equities: Ordinary shares of public limited companies listed on a Stock Exchange registered under the Investments and Securities Act of 1999, with good track records having declared and paid dividends in the preceding five years.
- Mortgage and Asset Backed Instruments
- Other Investments : Investment certificates of closed-end investment funds or hybrid investment funds listed on the Stock Exchange registered under the Investments and Securities Act of 1999 with a good track record of earnings.
- Units sold by open-end investment funds or specialist open-end investment funds listed on the stock exchange and recognized by PenCom.
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Prohibited Investment
Trustfund does not invest Funds-Under-Management in the shares or any securities issued by: |
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- Trustfund Pensions Plc or its custodians.
- A shareholder of Trustfund Pensions Plc or the company’s custodians
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| Fund Types & Investment Strategy |
The company may adopt a single fund model or a multiple fund model, in attracting and managing customers’ pension contributions, subject to regulatory provisions.
In a single fund model, all FUM will be managed as one portfolio/fund with one broad fund characteristics including investment objectives, investment strategy and asset allocation. All customer contributions will be managed as one fund irrespective of the demography or needs of contributors.
- In a multiple fund model, FUM will be managed as disparate portfolios depending on the characteristics of the different portfolios and the specified needs of individual contributors. Each portfolio will be distinct on the basis of structure and asset allocation, and will be designed to cater for the specific needs of contributors with similar age and risk profiles.
- In managing the company’s portfolio (s) in either single or multiple fund environments, our Investment Managers adopt a Balanced Strategy (mixture of aggressive and defensive strategies) by which the portfolio management is designed to provide both income and capital appreciation while avoiding excessive risk. A balanced portfolio combines stocks, bonds, packaged products, and cash equivalents.
- The Board of Directors determines the number and type of funds to be adopted by the company. The Board is strictly guided by regulatory provisions on allowable funds. The Head, Investment Management is primarily responsible for determining the appropriate investment strategy to be adopted in either a single fund environment or a multiple fund environment.
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