SSIF assets total JD13.8b by end of 2022 — CEO

AMMAN — The Social Security Investment Fund (SSIF) CEO Ezzeddin Kanakrieh announced that SSIF assets totalled JD13.8 billion at the end of 2022, up from JD12.3 billion at the end of 2021, a growth of 12 per cent, or JD1.5 billion.

This growth is attributed to the SSIF’s income, which amounted to JD685 million, the evaluation of the fund’s strategic equity portfolio, which amounted to JD414 million, in addition to the Social Security Corporation (SSC) surpluses, which amounted to JD335 million, according to a statement from the SSIF. 

Due to the strong performance throughout 2022, the SSIF’s income grew by 15.4 per cent compared to realised income in 2021. This growth came from the bonds portfolio income, which measured JD431.4 million, the equity portfolio, which valued JD122.3 million, in addition to the income generated by real estate, bank deposits and loans portfolios.

Comprehensive income also edged up throughout 2022 to register JD1.1 billion, signalling an 8.4 per cent rate of return growth.   

The SSIF’s CEO said that the strategic distribution of assets contributed to achieving the targeted returns on investments within acceptable risk levels, in a manner that ensures the preservation and development of the real value of assets.

In terms of the fund’s investment portfolios; the bonds portfolio accounted for 55.6 per cent of total assets, followed by equity at 19 per cent, financial market instruments at 13.3 per cent, real estate investments at 5.8 per cent, loans at 3.1 per cent and the tourism portfolio at 2.4 per cent.

The bonds portfolio amounted to JD7.6 billion, achieving a return rate of 5.9 per cent.  According to Kanakrieh, it is a common practice for pension funds to invest in treasury bonds, as they are a safe investment tool with a fixed income stream.

SSIF investments in the public and private equity portfolio grew throughout 2022, reaching JD2.5 billion, approximately JD2.2 billion of which are invested in companies listed on the Amman Stock Exchange (ASE), constituting 12  per cent of ASE’s total market value. SSIF also increased its investment in real estate through land purchases, which brought the size of the real estate portfolio to JD792.3 million at the end of 2022.

Kanakrieh said that some projects are already underway such as developing land owned by the SSC to establish mixed use facilities, the renovation of the Crowne Plaza Hotel-Petra, establishing new leisure facilities in Aqaba and establishing the fourth solar energy station to cover the electricity needs of the hotels owned by the SSC.

Moreover, the SSIF is studying a number of potential investment opportunities in various sectors; such as financial services, mining, telecommunications, tourism, agriculture and real estate development, in addition to financial leasing and PPP projects. SSIF is also keen to look into the projects outlined in the Economic Modernisation Vision.

The SSIF CEO concluded that the fund is being managed in accordance with good governance practices, following strict and transparent procedures, as well as acceptable risk levels. It is also important to invest in viable projects and diversify investment tools through private sector partnerships, Kanakrieh said.

The SSIF, in the statement, said that is dedicated to adapt the best international disclosure and reporting practices, as it publishes its financial figures and investment project briefs on its website: www.ssif.gov.jo.