Dissertation (MA Business Administration)
This study was carried out in the Public Service Pension Fund (PSPF) headquarter,
Dar es Salaam. The objective of the study was to assess the advantages of PSPF
investments to its members and suggest for common guidelines which will govern
investment of social security funds in Tanzania. Specific objectives were to
determine how assets allocation are made strategically among various categories of
investment portfolios of Pension Funds in Tanzania, to examine how best the
guidelines for investments of social security funds can benefits its members, so as to
ensure its sustainability, and to determine the advantages obtained by PSPF
investments to the benefit of members.
Non experimental design and cross-sectional were used in order to assess the
advantages of PSPF investments to its members and suggest for common guidelines
which will govern investment of social security funds in Tanzania. Questionnaires,
In-depth interviews, focus group discussion and intensive documentary reviews were
used for data collection purposes.
Findings from this study observed that PSPF uses different investments fixed income
assets and equities. It employs asset allocation on Government securities in the form
of treasury bills and bonds, real estates and bank fixed deposits account. Most of the
assets are allocated on the government securities. Furthermore, findings revealed that
despite many challenges the PSPF has tried its best level to deploy proper guidelines
for investments like safety, yield, liquidity, prudence, diversification, economic and
social utility though investments‘ guidelines and policy objectives on governing its
investments are not yet fully implemented. Therefore, the study concludes that PSPF
investments are very advantageous to its members if all its guidelines which govern
investment are fully implemented this institution.
Finally, the study recommended on the feasible approaches in which PSPF can adopt
in responding to the challenges of global crisis and exploit emerging investments
opportunities.