We operate a defined benefit plan, where surplus funds are invested to support the plan’s sustainability. Our governance framework entrusts the Board of Trustees to prepare, maintain and from time to time to revise an Investment Policy for the Fund.
- Fixed Income (Domestic and International)
SPF’s permitted Fixed Income investments are mainly in Fixed term deposits, Certificates of Deposits, Treasury and Government agency securities, Supranational debts securities, securitized debt instruments and corporate debt securities. Currently, SPF does not have positions in Supranational debts securities, securitized debt instruments and corporate debt securities in both local and international market.
- Equity (Domestic and International)
As per the Investment Policy SPF can ventures in both listed and unlisted equity in local, Global and Emerging Market. SPF has managed to invest in all sub-classes for the exception of Global markets. The bulk of the Equity investment is in the Domestic market. However, in the near future SPF has plan to increase its international exposures.
- Real Assets (Domestic and International)
Real Assets investment as per the Investment Policy are Real Estate, Commodities and Infrastructure.
Currently, SPF has investment only in Real Estate which has the highest allocation in the Portfolio. For a more diversified Portfolio, SPF has an ongoing strategy to reduce its Real Estate allocation.
- Alternative (Domestic and International)
The allowable Alternative investment is in Private Equity. SPF at present has no allocation in such asset class.
- Cash and Cash Equivalent (Domestic and International)
Cash and Cash Equivalent investments are mainly in Bank balance, Certificate of Deposits and Treasury securities which are up to 3 months maturity.