Section 39 subsection 1 - 4 of the GEPF Retirement Benefits Fund Act no. 8 of 2013 prescibes one of the core function of GEPF as "To invest moneys paid to the Fund in such security or securities yielding interests as approved by the board".In order to carry out this function , the Fund developed a comprehensive Investment policy as the guideline for undertaking its various investments. This Investment Policy guides investment activities of the GEPF Retirement Benefits Fund. It has been developed in consistence with the Funds corporate objectives.
The document seeks to provide guidance on various types of investments to be made, the processes, procedures and limitations in order to ensure capital preservation, achieve a real rate of return on investments, maintain sound liquidity and holding a portfolio mix that ensures high return with a minimum acceptable risk. This policy document shall assist GEPF Management, the Board and advisors in investment decision, in supervising, monitoring and evaluating the management of the Fund Assets.
The objective of this investment policy is to guide the Funds Management and the Board in its investment decision-making. The Policy aims at exploiting the investment opportunities available in the country, maximizing income, protecting them, safeguarding and promoting the interest of members of the Fund by directing investments into safe, high yielding investments and minimise any loss so as to be consistent with the Funds main objective, which is "to provide timely and high quality services to its members and maintain sustainable growth of the Fund.
The policy also seeks to ensure that sufficient return is realised and distributed to members accounts for their future use. Within this desire, the Fund aim at maximizing returns within reasonable and prudent levels of risk and maintain appropriate asset allocation with the potential to produce positive and real returns.
What Do We Invest In?
GEPF Retirement Benefits Fund invest in the following asset classes, namely:
- Fixed income and
- Real Estate and properties
Equities are shares of private companies or companies listed on the Dar-es-salaam Stock Exchange (DSE)
Fixed income means investments in the domestic capital (bond), loans and money markets. In the money markets, GEPF invests in fixed deposits, treasury bills and treasury bonds. The Fund only deals in bonds traded through the Dar-es-salaam Stock Exchange. It issue loans to corporate bodies and Savings and Credit Corporative Societies (SACCOS).
GEPF invest in properties and real estate as sole propietor or through joint developments with other strategic investors.