- Safety
- Invest in high yielding investments
- Liquidity
- Diversification to spread risk
- Social, environmental and economic utility
Fund’s Investments
The Fund mainly invests in:
Investments in this category mainly refers to Portfolio in bank deposits, Government Securities (T/bills and T/bonds,), Units, Corporate bonds, Promissory notes, Government papers, long term loan, syndicated loans and Micro financing.
In this category, investments refer to acquiring the shares from companies with good track records. Most of them are the listed companies while few of them are non-listed.
Note: For Listed Companies it means the companies which its shares are in the secondary market i.e. Dar es Salaam Stock exchange
For this category, it means investment in buildings for residential, office premises and, commercial properties like recreational facilities, conference, parking arcade and hotels.
As per the policy the Fund’s Investment policy has the following benchmarks.
- Fixed Income Assets 36% - 54%
- Equities 12% - 18%
- Properties 32% - 48%
Fund’s Investment Portfolio
The Fund’s Special Product of Low Cost Housing Scheme
The Fund established the low cost housing project special for its members. This project started in Kiseke-Mwanza, and will continue to other regions depending on the demand and availability of plots.
Beneficiaries of the Project
- This project is aimed for PPF members who are in need without any condition.
- General Public given that the demand for members is exhausted
- Employers who have the plans for their employees’ accommodation.
Mode of payment for the houses
For Hire Purchase, the successful client/customer should find a financing from his/her own source whether
a bank or any financial institution.
For Outright Purchase the customer should pay in full to the Fund immediately as the offer letter is received.
Fund’s Special Product of Micro financing
The Fund established a loan Scheme to its members mostly employee based SACCOS.
Eligibility for the Loan Scheme to SACCOS
The eligible parts for this loan are:
- Employee based SACCOS and it members must be contributing to PPF
- The SACCOS must have a track record of at least three years of operation and its accounted are audited.
- The employer under which SACCOS was established must have not been listed in the retrenchment plan
- The SACCOS must obtain the employer’s guarantee for the loan applied.
- SACCOS in specified companies (i.e. Parastatal lined up for privatization) shall not be eligible to borrow under this scheme,
Advantage of the Scheme
- Increased tenure of the loan
- Affordable interest rate
- Reduced repayment burden due to long tenure of repayment.
Conditions for the loan to SACCOS
- Formal Application letter
- Profile of the SACCOS
- The detailed status of the members
- Approved list of applicants by Employer and SACCOS Management
- Most current audited accounts for at least 3 years
- Letter of Employer’s guarantee.
- Comments on SACCOS key Management; their qualifications and experiences.
- Exposure to any other Financial Institution.
Sample of Loan repayment Schedule
Loan Amount |
Duration of the Loan |
Monthly
Installments |
1,000,000 |
3 Years |
33,214 |
|
5 Years |
22,244 |
2,000,000 |
3 Years |
66,429 |
|
5 Years |
44,489 |
5,000,000 |
3 Years |
166,072 |
|
5 Years |
111,222 |
10,000,000 |
3 Years |
332,143 |
|
5 Years |
222,444 |
20,000,000 |
3 Years |
664,286 |
|
5 Years |
444,889 |
