Social security assets grow 10% in 2021

SSIF considering investment in National Water Carrier — CEO

(Photo: Jordan News)
AMMAN — Social Security Investment Fund (SSIF) CEO Kholoud Saqqaf said that SSIF retained a good performance in 2021. Total assets kept growing to reach JD12.3 billion at the end of the year, compared to JD11.2 billion at the end of 2020, a JD1.1 billion, or 10 percent, increase, according to Al-Mamlaka TV. اضافة اعلان

Presenting the SSIF 2021 preliminary financial results and its key achievements at a press conference, Saqqaf also pointed out that SSIF’s income grew in 2021 to reach JD575 million, in comparison to JD509 million in 2020, representing a 13 percent growth, attributed mainly to the growth in returns from bonds, money market instruments, and equity portfolios.

Saqqaf talked about the prudent allocation of SSIF’s total assets, in view of the pandemic, which were as follows: 57 percent in government bonds and bills, 16.6 percent in equities, 12.9 percent in money markets instruments, 6.1 percent in real estate, 3.4 percent in tourism, and 2.4 percent in loans, as well as and about the current and future expectations of the national economy.

The 2021 performance of the Amman Stock Exchange (ASE) positively impacted SSIF’s equity portfolio, said Saqqaf, adding that the market value of this portfolio had increased by JD411 million at the end of 2021, while it registered a JD371 million decline at the end of 2020.

She said that SSIF increased its ownership in some strategic publicly traded companies in the banking, mining, and pharmaceuticals sectors.

All these developments led the public equity portfolio to edge JD2 billion, which represents 12 percent of the total ASE market value.

Saqqaf said that the bonds portfolio, which makes up 57 percent of the total portfolio, generated an income of JD411 million at the end of 2021, with a 6.1 percent rate of return, which is associated with low risk; it was the highest among returns of all other portfolios.

According to Saqqaf, SSIF’s updated strategy (2022–2024) targets investing in Public Private Partnership mega infrastructure projects, like the National Desalination Project and the project entailing building 15 public schools, as well as expanding its investments in the mining sector.

SSIF is keen to further improve the Social Security Corporation’s financial sustainability and achieve the targeted risk adjusted returns on various investments, she said. While adhering to the investment policy, SSIF is taking into consideration the international best practices of UN Sustainable Development Goals and the Environmental, Social and Governance criteria, said Saqqaf, adding that SSIF continues to use the best international practices in disclosure and reporting.

The fund’s assets increased at the end of last year to reach JD12.3 billion, compared to JD1.6 billion at the end of 2003, while the interest rate on assets for the same period amounted to 5.4 percent annually.

Saqqaf said the fund will work on the first agricultural project in Al-Madura area, with an expected investment of JD13 million, and on three solar power plants that are expected to save about JD5 million per year to the energy bill.

The fund is considering investing in the National Water Carrier project and establishing public schools, and is seeking to build a specialized investment institution, said Saqqaf, who stressed that the fund works professionally and faithfully to preserve the participants’ funds.

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