Investment Strategy

We largely implement our investment strategy through a multi-manager arrangement. Value is further added through investment activities performed in-house by the Investment Management Unit, which is the investment management and operating arm of EPPF.
 

We have adopted a “Core/Satellite” approach to structuring mandates (local and international). Portfolio mandates are specialised along the lines of asset classes, while trying to select the best equity and bond managers. This is further refined by selecting the best “Core” and best “Satellite/Aggressive” equity and bond managers.
 

Our Investment Management Unit manages fixed income (bonds), money market investments, listed equity, listed properties, private equity and hedge funds, tactical assets allocation and other value-added strategies.
Our strategic asset allocation is reviewed by the Strategic Investments Committee and approved by the Board of Fund, with advice and recommendations from the Investment Management Unit. Other investment-related service providers are involved when required.
 

The Board has also taken note of PF130 issued by the Financial Sector Conduct Authority (“FSCA”) (previously known as the Financial Services Board). Whilst FSCA circulars are not legally binding on retirement funds, the Board recognises them as “recommended practice” and aims to adhere to PF130 as far as it is deemed appropriate to do so. A number of principles of good governance that specifically relate to investments have been identified by the Board. Many of these are contained in Annexure B of PF130.