The foundation of a successful return on investment is a well-diversified portfolio. Our asset allocation is spread into equities, fixed income, real estates, mortgage and asset backed securities.

Capital Preservation: ‘Safety of Principal’ is the primary investment objective and driver of investment activities in Trustfund. Investments shall be undertaken in a manner that seeks to ensure the preservation of principal in the overall portfolio. We shall rely on ‘best judgment’ in selecting and managing investments that will protect and preserve contributors’ capital. We will balance risk and return objectives with the capital preservation objective and ensure to the greatest extent possible that all such risks taken by the company are not contrary to the capital preservation objective.

Liquidity: Trustfund’s investment portfolio shall be structured in such a manner as to provide sufficient liquidity to pay obligations as they come due. We shall ensure at all times that the portfolio structure is such that provides sufficient liquidity cover for payment of benefits and any fund expenses.

Return on Investments: The investment portfolio shall be designed to attain a competitive rate of return taking into account the risk constraints, portfolio structure and regulatory/legal restrictions on portfolio investments. Trustfund shall aim to achieve a return higher than inflation and risk-free government securities at all times through active portfolio management.

Maintaining the Public’s Trust: Trustfund shall seek to act responsibly as Pension Fund Administrators and shall avoid any transaction that might impair public confidence in the company and its stakeholders.

Investment Management Principles:

The following investment principles guide the definition and execution of our investment strategies:

1. The Investment Planning Committee (IPC) of the Board approves investment guidelines and policies that govern investments, which are subject to the approval of the Board of Directors.
2. In order to minimize the risk of significant losses, portfolio assets are  diversified with respect to the exposure to economic sectors, industries and individual securities. 
3. The Investment Planning Committee (IPC) documents the review process for permitting the use of new instruments, strategies or asset classes.
4. Oversight of compliance with risk policies is independent from investment activities.
5. All readily priced instruments (e.g. equities) are valued daily; less-priced instruments (e.g. unit trusts, mutual funds) at least weekly; and non-readily priced instruments (e.g. real estate) as often as feasible and whenever a material event occurs.
6. All investment instruments including properties are rated by recognized rating agencies.
7. The Internal Control department is responsible for the management of operational risks and develops policies and procedures to control such risk exposures.
8. The Pension Fund Custodian performs holds the company’s pension fund assets in safe custody on trust for members, and executes instructions relating to investments.

The fiduciary standards of conduct apply to the Board of Directors, Executive Management including the Head, Investment Management, Investment Managers and others who exercise discretionary authority or discretionary control over the management or disposition of portfolio assets. It requires, among other things, that officers of the company act solely in the interest of customers for the exclusive purpose of providing adequate pension benefits, and act with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims.