Training course on Managing Social Protection Funds and Investments

Training Course on Managing Social Protection Funds and Investments

Introduction: 

The effective management and prudent investment of social protection funds are paramount to ensuring the long-term solvency, adequacy, and public trust in social insurance schemes and other social protection programs. Training Course on Managing Social Protection Funds and Investments is meticulously designed to equip with the expert knowledge and practical methodologies to effectively manage and prudently invest social protection funds, balancing financial returns with social objectives and long-term sustainability. The program focuses on governance structures, investment policies, asset-liability management, risk management frameworks, internal controls, transparency and accountability mechanisms, and aligning investments with national development priorities, blending rigorous analytical frameworks with practical, hands-on application, global case studies (with a strong emphasis on African contexts, including Kenya's National Social Security Fund - NSSF and National Hospital Insurance Fund - NHIF), and intensive portfolio management and risk assessment exercises. Participants will gain the strategic foresight and technical expertise to confidently steward social protection funds, fostering unparalleled financial security, integrity, and long-term impact, thereby securing their position as indispensable leaders in safeguarding the financial future of social welfare for current and future generations.

This intensive 5-day program delves into nuanced methodologies for designing robust governance frameworks that ensure independence and expertise in fund management, mastering sophisticated techniques for developing comprehensive investment policies aligned with actuarial projections and risk tolerance, and exploring cutting-edge approaches to conducting asset-liability matching to mitigate future financial risks, implementing advanced risk management strategies including stress testing and scenario analysis, optimizing investment portfolios to achieve sustainable returns while considering ethical and environmental, social, and governance (ESG) factors, leveraging digital tools for real-time monitoring and reporting, and navigating the complexities of investing in both domestic and international markets, particularly in emerging economies. A significant focus will be placed on understanding the interplay of fund management with broader public financial management (PFM) reforms, the specific challenges of low financial market depth and high inflation in developing countries (as observed in Kenya), and the practical application of stakeholder engagement and communication strategies to build public trust and ensure accountability.

Course Objectives:

Upon completion of this course, participants will be able to:

1. Analyze core concepts and strategic responsibilities of managing social protection funds and investments for long-term sustainability.
2. Master sophisticated techniques for designing and implementing robust governance frameworks for social protection funds.
3. Develop robust methodologies for formulating comprehensive investment policies and guidelines aligned with scheme objectives and risk appetite.
4. Implement effective strategies for conducting asset-liability management (ALM) to ensure long-term financial matching.
5. Manage complex considerations for identifying, assessing, and mitigating investment risks (market, credit, operational, liquidity).
6. Apply robust strategies for optimizing investment portfolio construction and diversification for sustainable returns.
7. Understand the deep integration of ethical and Environmental, Social, and Governance (ESG) factors in investment decisions.
8. Leverage knowledge of global best practices and lessons learned from successful social security fund management and investment in diverse country contexts, particularly in Africa (including Kenya).
9. Optimize strategies for enhancing transparency, accountability, and reporting in fund management operations.
10. Formulate specialized recommendations for developing robust internal control systems and compliance frameworks for fund management.
11. Conduct comprehensive assessments of investment performance and attribution analysis.
12. Navigate challenging situations such as market volatility, inflation, political interference, and capacity constraints in managing social protection funds.
13. Develop a holistic, evidence-based, and fiscally prudent approach to Managing Social Protection Funds and Investments, ensuring financial integrity, growth, and the security of beneficiaries.

Target Audience:

This course is designed for professionals interested in Managing Social Protection Funds and Investments: 

1. Social Security Fund Managers & Directors: Responsible for the day-to-day operations and strategic direction of social security funds (e.g., NSSF, NHIF in Kenya).
2. Pension Fund Trustees & Board Members: Overseeing the governance and investment strategies of pension schemes.
3. Investment Committee Members: Guiding investment decisions for social protection funds.
4. Finance Ministry Officials & Regulators: Responsible for oversight, policy formulation, and regulation of social protection schemes.
5. Actuaries & Actuarial Analysts: Providing financial projections and risk assessments for social insurance schemes.
6. Investment Professionals & Asset Managers: Managing portfolios for social protection funds (e.g., fund managers hired by NSSF).
7. Internal & External Auditors: Ensuring the integrity and compliance of fund management practices.
8. Development Partners & International Organizations: Supporting capacity building and good governance in social protection fund management.

Course Duration: 5 Days

Course Modules:

• Module 1: Foundations of Social Protection Fund Management
• Purpose and nature of social protection funds (contributory vs. non-contributory).
• The importance of prudent fund management for long-term sustainability and adequacy.
• Key stakeholders and their roles in fund governance.
• Overview of global social protection fund assets and investment trends.
• Specific context of social protection fund management in Kenya (e.g., NSSF's investment portfolio).
• Module 2: Governance Structures and Legal Frameworks
• Best practices in governance for social protection funds: Independence, expertise, transparency.
• Roles and responsibilities of boards of trustees/directors, investment committees, and management.
• Legal and regulatory frameworks governing social protection investments (e.g., Kenya's Retirement Benefits Authority (RBA) regulations).
• Addressing conflicts of interest and ensuring fiduciary duty.
• The role of social dialogue and stakeholder representation in governance.
• Module 3: Investment Policy and Strategy Development
• Developing a comprehensive Investment Policy Statement (IPS): Objectives, risk tolerance, time horizon.
• Strategic Asset Allocation (SAA): Determining the optimal mix of asset classes (equities, fixed income, real estate, alternatives).
• Tactical Asset Allocation (TAA) and active vs. passive investment strategies.
• Considerations for investing in domestic vs. international markets, especially for emerging economies.
• Aligning investment strategy with actuarial analysis and scheme liabilities.
• Module 4: Asset-Liability Management (ALM) and Risk Management
• Principles of ALM: Matching fund assets with future liabilities (benefit payments).
• Identifying and measuring key risks: Market risk, credit risk, liquidity risk, operational risk, currency risk, inflation risk.
• Developing risk management frameworks: Stress testing, scenario analysis, risk limits.
• Implementing hedging strategies and diversification techniques.
• Challenges of ALM in high-inflation and volatile economic environments like Kenya.
• Module 5: Investment Operations and Portfolio Management
• Establishing robust investment processes: Research, selection, execution, monitoring.
• Role of internal investment teams vs. external fund managers.
• Performance measurement and attribution analysis: Assessing returns against benchmarks.
• Custody and record-keeping for investment assets.
• Leveraging technology and data analytics for efficient portfolio management.
• Module 6: Transparency, Accountability, and Internal Controls
• Importance of transparency in fund management: Public reporting, disclosure.
• Developing robust internal control systems to prevent fraud and errors.
• Role of internal and external audits in ensuring financial integrity.
• Mechanisms for beneficiary oversight and feedback.
• Combating corruption and illicit financial flows within fund operations.
• Module 7: Sustainable and Responsible Investment (SRI) / ESG Integration
• Defining SRI and ESG factors: Environmental, Social, and Governance considerations in investing.
• Why integrate ESG: Risk mitigation, enhanced returns, alignment with social objectives.
• Implementing ESG screening, integration, and engagement strategies.
• Investing in socially responsible and impactful projects (e.g., infrastructure, affordable housing in Kenya).
• Challenges and opportunities for ESG investing in developing markets.
• Module 8: Case Studies, Challenges, and Future Trends
• Analysis of successful and challenging case studies in social protection fund management (e.g., lessons from NSSF's investment journey in Kenya, or pension funds in Chile, Canada, South Africa).
• Addressing common challenges: Political interference, capacity gaps, market illiquidity.
• Emerging trends in social protection fund management: Digitalization, artificial intelligence, climate-resilient investments.
• Developing a strategic action plan for improving fund management practices in participants' own contexts.
• Discussion on the future of social protection fund management in Africa.

 

Training Methodology

• Interactive Workshops: Facilitated discussions, group exercises, and problem-solving activities.
• Case Studies: Real-world examples to illustrate successful community-based surveillance practices.
• Role-Playing and Simulations: Practice engaging communities in surveillance activities.
• Expert Presentations: Insights from experienced public health professionals and community leaders.
• Group Projects: Collaborative development of community surveillance plans.
• Action Planning: Development of personalized action plans for implementing community-based surveillance.
• Digital Tools and Resources: Utilization of online platforms for collaboration and learning.
• Peer-to-Peer Learning: Sharing experiences and insights on community engagement.
• Post-Training Support: Access to online forums, mentorship, and continued learning resources.

 

Register as a group from 3 participants for a Discount

Send us an email: info@datastatresearch.org or call +254724527104

Certification

Upon successful completion of this training, participants will be issued with a globally recognized certificate.

Tailor-Made Course

We also offer tailor-made courses based on your needs.

Key Notes

• Participants must be conversant in English.
• Upon completion of training, participants will receive an Authorized Training Certificate.
• The course duration is flexible and can be modified to fit any number of days.
• Course fee includes facilitation, training materials, 2 coffee breaks, buffet lunch, and a Certificate upon successful completion.
• One-year post-training support, consultation, and coaching provided after the course.
• Payment should be made at least a week before the training commencement to DATASTAT CONSULTANCY LTD account, as indicated in the invoice, to enable better preparation.