Investment Decision-Making Framework
The investment decision-making process at the
Social Security Investment Fund (SSIF) is governed by a robust institutional
framework built on multiple layers of evaluation and oversight, with clearly
defined mandates and segregation of responsibilities, ensuring that no
investment decision is taken on an individual basis.
Investment decisions are guided by disciplined
professional principles aimed at generating risk-adjusted returns within
acceptable risk parameters, while preserving and enhancing the real value of
assets over the long term, and ensuring alignment with the Fund’s
asset-liability management (ALM) framework.
The process encompasses the assessment of
investment opportunities across a broad range of projects and asset classes,
alongside the periodic review of existing investments, based on economic
viability, associated risk exposure, and forward-looking projections, in
alignment with the Fund’s strategic objectives. Accordingly, decisions are made
to initiate, retain, expand, or exit investments.
To ensure the integrity and quality of
investment decisions, the process operates within a structured governance
framework supported by clear policies and delegated authorities that define
decision-making levels and accountability.
The evaluation of investment opportunities is
initiated at the level of the relevant investment directorates to assess
alignment with the Fund’s overall investment objectives. Based on the outcomes
of these assessments, recommendations are submitted to the Investment
Committee, which exercises decision-making within its delegated authority or
escalates recommendations to the Investment Board of SSIF for final approval,
in accordance with the investment policy approved by the Board of Directors of
the Social Security Corporation.
The Investment Committee is chaired by the Chairman of the Fund and comprises four directors of the investment directorates, in addition to a representative from the Risk Management and Strategic Planning Directorate attending in an observer capacity.