1. Policy Purpose
This Investment Policy establishes the framework for the management of the investment portfolio of Shekel SACCO. It sets out the principles, guidelines, and constraints that govern the investment decisions to ensure the safety of members’ funds, liquidity of assets, and an adequate return on investments.
2. Scope of Investments
The scope of permissible investments for Shekel SACCO shall include but not be limited to:
- Fixed deposits in reputable banks.
- Government and corporate bonds.
- Real estate property in strategic locations for potential capital appreciation.
- Secured investments in other sectors such as agriculture, industries, oil & gas, etc.
- Shares and other equities in regulated markets.
- Microfinance projects and social impact investments aligned with the SACCO’s mission.
3. Investment Objectives
The primary objectives of Shekel SACCO’s investments are:
- Preservation of Capital: Prioritize the protection of the principal amount invested.
- Liquidity: Maintain adequate liquidity to meet the SACCO’s obligations when due.
- Return on Investment: Achieve a competitive rate of return within acceptable levels of risk.
4. Investment Authority
The SACCO’s Committee shall delegate the execution of investment decisions to an Investment Committee, which will operate within the parameters of this policy and in line with the Committee’s strategic directives.
5. Risk Management
Diversification: Investments shall be diversified to minimize risk.
- Credit Risk: Only invest in instruments with high credit ratings.
- Interest Rate Risk: Monitor the interest rate environment to mitigate the impact on the SACCO’s investment returns.
- Market Risk: Assess market conditions to avoid losses due to volatile markets.
6. Investment Procedures
- Due Diligence: Perform thorough due diligence before making any investment.
- Approval: All investments must be approved by the Investment Committee and, for significant amounts, by the Committee.
- Monitoring: Continuous monitoring of investments and market conditions.
7. Reporting
The Investment Committee will provide regular reports to the Committee on the status of investments, including performance, risks, and compliance with this policy.
8. Ethics and Compliance
All investment activities must comply with the applicable laws and regulations and uphold the highest ethical standards.
9. Conflict of Interest
Members of the Investment Committee and Committee must disclose any conflicts of interest regarding investment opportunities and recuse themselves from decision-making when necessary.
10. Review and Amendment
This policy shall be reviewed at least annually to ensure its continued relevance and effectiveness, with amendments proposed and ratified by the Committee.
11. Policy Effective Date
This policy was drafted by the Xavian Group and has been approved by the founding members of Shekel SACCO during a Special General Meeting and is effective as of 15th September 2026.
