FACTORS INFLUENCING PENSION MANAGERS’ INVESTMENT DECISION
A CASE STUDY OF ZANZIBAR SOCIAL SECURITY FUND (Z.S.S.F)
By: ABDULAZIZ M. RAMIA
REG. NO: ZU/MBA/0001/12
FACULTY OF BUSINESS ADMINISTRATION

PROPOSED SUPERVISOR: DR. MASOUD

A Concept Paper Submitted in Partial Fulfillment of the Requirement for the Degree of Master of Business Administration in Finance (MBA- Finance) of Zanzibar University

1.0 INTRODUCTION AND BACKGROUND OF THE STUDY
1.1 Introduction
In most economies value is presently obtained through a market process where supply meets demand. Here is where finance and financial markets come into play. They provide the tools to optimize the allocation of resources through time and space and to manage risk. Finance is by nature quantitative like economics but it is subject to a large level of risk. It is the measurement of risk and the implementation of decision-making processes based on risk that makes finance a quantitative science and not simply accounting.

Pension is a benefit promised to an employee by an employer during employment and is payable on leaving or retiring from the employer’s service. In the developed countries, pension plans are established and managed through creation of trust. In many cases, the fund is invested by the employer and pension is payable from the recurrent revenue of the employer. In general the main purpose of pension is to provide people with an income when they are no longer earning a regular income from employment. So that low income obtained by the fund can reduce the performance of pension fund managers to manage properly on asset allocation through the investment decisions made by the Pension fund managers.

Investment amongst core functions of the pension fund like Zanzibar Social Security Fund (Z.S.S.F), that investment managers needs to use contributed fund from contributions members and then