SSIF retains good performance in Q1

Fund achieves 200 million asset growth

The building of the Social Security Investment Fund. (Photo: Handout from SSIF)
The building of the Social Security Investment Fund. (Photo: Handout from SSIF)
AMMAN — The Social Security Investment Fund’s (SSIF) assets saw growth during the first quarter of 2021, reaching JD11.4 billion, compared to JD11.2 billion by the end of 2020, SSIF CEO Kholoud Saqqaf said on Wednesday.اضافة اعلان

According to an SSIF statement received by Jordan News, 11.4 percent of the fund’s investment portfolio is invested in money market, 58.7 percent in bonds, 3.5 percent in loans, 14.7 percent in equity, 6.4 percent in real estate investments, and 2.6 percent in tourism investments.

Saqqaf said that the fund’s income also grew to reach JD137 million, compared to JD112 million for the same period of 2020, constituting a 22-percent growth, which was attributed to growth in returns from bonds, money market instruments, loans, and the dividend streams from the companies in which SSIF invests.

SSIF CEO pointed out that as one of the biggest institutional investors in the national economy, the Fund has seized investment opportunities in many vital sectors. Since the beginning of the year, the fund increased its stake on selective grounds in some strategic companies in the banking and pharmaceutical industries, given also the current decline in stock prices. 

Several companies in which SSIF invests have announced dividend distributions since beginning of the year, of which the fund’s share was approximately JD32 million. Saqqaf added that the SSIF registered around JD74 million unrealized book profits by the end of the first quarter.

The Fund has also accomplished establishing three solar stations to provide power to Social Security Corporation (SSC) hotels, SSIF and SSC headquarters and branches, with a total capacity of 15MW and a total cost of JD17 million, within a payback period of 3 years, according to the statement. 

The SSIF added that the project will reduce SSC’s utility bill by JD5 million annually, noting that it also created 300 jobs for Jordanian engineers and workers throughout the construction phases.

To implement best practices in corporate governance, the fund issued an updated version of the corporate governance manual for the representatives on the boards of directors of companies in which the SSCIF invests. The manual outlines a comprehensive monitoring system that seeks to strengthen governance, improve financial performance and promote responsible business practices in these companies, according to the statement.

Saqqaf said that SSIF pursued many new projects that were launched last year, including Crowne Plaza Hotel/Petra, which is still undergoing renovation and will be open to visitors at the end of this year. The hotel is expected to create 200 permanent jobs, according to Saqqaf. 

Last year, Saqqaf added, Daman Company for Investment and Agricultural Industries, which was established by the fund, signed an agreement with a specialized company that has the expertise and track record in developing and marketing such projects. Daman company will manage SSIF’s first agricultural project, at a total cost of JD13 million in the southern region of the Kingdom, on an area of 25,000 dunums, to produce vegetables and fodder. The project is expected to create 130 permanent jobs.  

According to Saqqaf, the National Infrastructure Investment Company, which was also established by SSIF last year in partnership with the Commercial Banking Company, is currently studying some mega projects, including public-private-partnership projects.

Saqqaf stressed that the fund “deeply believes that the best way to pursue good business is through cooperating with the private sector based on well-structured partnerships, with an appetite to consider major projects launched at a national level.”

“This will enable SSIF to augment its assets. Furthermore, it is, without a doubt, the key engine for economic growth, job creation and promoting a competitive business environment,” Saqqaf said, adding that the fund follows that best international practices in regard to disclosure, as it publishes its financial reports quarterly on the fund’s website:

Read more Business