National Social Security Found Institution - synthèse en anglais

TABLE OF CONTENTS

INTRODUCTION 3

FIRST PART: PRESENTATION OF THE CNSS 3

CHAPTER 1 3

General Acknowledgment of the National Social Security Fund Institution 3

Section 1: Presentation of the National Social Security Fund Institution 3

1. Historical Background of Social Security in Morocco 3

2. Mission of the National Social Security Fund Institution 3

3. Organization of the CNSS 3

4. Management Organs of the Entity 3

5. Financing of the CNSS 3

Section 2: The Financial and Accounting Department 3

1. Divisions of the FAD 3

1.1. The Budgetary Division 3

1.2. The Accounting Division 3

1.3. The Financial Division 3

2. Description of the management process of cash surplus investment 3

2.1. The Logistic Organization of the Financial Division 3

²&2.1.1. The Investment Committee 3

2.1.2. The Management Committee 3

2.1.3. The Management Team (Managers) 3

2.2. Management Process 3

2.2.2. Management Committee 3

2.3. The Management Process of Cash Surplus Investment 3

CHAPTER 2 3

The Undertakings of Collective Investment in Securities 3

Introduction 3

Section 1: UCITS, Definition and Classification 3

1. Definition 3

2. UCITS Classifications 3

Section 2: UCITS, Management and Control 3

1. UCITS Management 3

2. The Approval and Authorization of the Securities Board of Ethics (CDVM) 3

3. Benefits of Investing in Mutual Funds 3

4. UCITS Control 3

5. UCITS Functioning 3

6. UCITS Purchase and Sale 3

6.1. The Net Asset Value (NAV) 3

6.2. Net Assets 3

6.3. Subscription Commission 3

6.4. Redemption Commission 3

6.5. The Rights of Entry and Exit 3

6.6. Management Fees 3

SECOND PART: METHODS OF PORTFOLIO MANAGEMENT 3

Introduction 3

CHAPTER 1: Benchmarking 3

1. Definition of Benchmark 3

2. Criteria of a good Benchmark 3

3. The Moroccan Stock Market Indices 3

3.1. CFG Bonds Index 3

3.2. MBI Index 3

3.3. Limits of The Moroccan Bond Markets' Benchmarks 3

CHAPTER 2: Methods of Asset Management 3

1. Index Management 3

1.1. Passive Index Management 3

1.2. Active Index Management 3

2. Alternative Management 3

2.1. Definition 3

2.2. Common Characteristics of Alternative Invest Management 3

THIRD PART: MEASURING THE PERFORMANCE OF DEDICATED FUNDS OF THE CNSS: 3

CHAPTER 1 3

Presentation of CNSS Portfolio: Descriptive Analysis of Management Customs 3

Introduction 3

Section 1: Portfolio analysis and management philosophy 3

1. Diversification over time 3

2. Diversification through several fund managers 3

Section 2: Portfolio of funds dedicated to the CNSS 3

1. Portfolio Composition 3

2. Management Approach 3

CONCLUSION 3

BIBLIOGRAPHY 3

FIGURES LIST 3

TABLES LIST 49

INTRODUCTION

Our primary concern during the first two weeks of the internship was to understand the mechanism of investment of the surplus cash from the first step of collection of information to the control of execution.

Thus, in this first part we will present the host unit and its environment. So, initially we will present the National Social Security Fund through its history, its mission and its organization. We will then present the Finance and Accounting Department (FAD) with an analysis of its management processes, and more particularly the Finance Division where we spent our internship.

Then, the second part will be devoted to the presentation of the mutual fund securities because of their importance in the overall portfolio of the CNSS. This presentation will focus first on the definition and classification of mutual funds, then the rules of management and control as they are set by the Securities Board of Ethics (Conseil Déontologique des Valeurs Mobilières “CDVM”).

Finally, the last part will consist on describing the management customs that are implemented by the management team at the CNSS, its benefits and possible improvements that may be done. This final part will also consist on analyzing the portfolio components and its diversification, and describing the respective management process that defines the management philosophy applied at the CNSS.

FIRST

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