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Investment
Objectives and Strategy
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Through carefully
studied and prepared plans, PASI does not only aim at
maintaining the level of its investments but also at allocating
these investment in such ways that provide higher potential for
further developing its assets and securing the maximum revenue
at minimum risks as well as securing a level of cash flow that
allows it to meet its obligations towards the insured.
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The invested
assets of the establishment rose by 14.3% in 2002.
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the allocation of
investments is made in accordance with the Establishment
investment guidelines set in compliance with the provision of
Royal Decree number 31/96, and consequently maintaining a level
of elasticity to accommodate economic and financial variations
that reflect on the world of investment.
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In all
circumstances, the allocation of investments among sectors is
subjected to specific terms set to allow increase in assets
values and steady revenues.
Types of
Invested Assets
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PASI invests its
funds in the following sectors
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Local stocks
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Local bonds
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International
stocks
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International
bonds
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Local real
estate
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Local and
foreign deposits and depository certificate
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International
investment funds
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Special
international funds
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The following
table illustrates a comparison between the types and ratios of
investments made in 2002 and 2001.
Allocation of Invested
Assets
|
Type of Invested
Assets |
Dec 31, 2001 |
Dec 31, 2002 |
|
Stocks |
22.9% |
23.312% |
|
Joint investment
chits |
3.2% |
3.624% |
|
Special stock funds |
0.1% |
0.510% |
|
Short term assets |
53.9% |
47.592% |
|
Government bonds |
3.4% |
16.744% |
|
Private bonds and
depository certificates |
4% |
5.393% |
|
Real estate |
2.5% |
2.825% |
|
Total |
100% |
100% |
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PASI
investments are subjected to revision from time to time in
compliance with the Investment Regulatory Roster with the
aim of re-allocating them in view of the capital markets
fluctuation.
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Table 2
illustrates the geographical investments allocation both
locally and internationally in the years of 2001 and 2002
|
Invested Assets |
DEC 31, 2001 |
DEC 31, 2002 |
|
Investments made
locally |
91.8% |
93.9% |
|
Investments made
internationally |
8.2% |
6.1% |
|
Total |
100% |
100% |
PASI Investment
Activities in 2002
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PASI laid down a
solid investment plan for 2002 according to which the investment
in local stock expanded noticeably having and over all positive
reflection on the Establishment investment performance
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The Establishment
chose not to expand its investments in foreign stocks due to the
negative signs that prevailed in the international stock markets
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The Establishment
also chose not to expand its investments on fixed deposits due
to the decrease in interest rates; instead PASI shifted to other
investment tools that secure better revenues. PASI’s choice of
investments in government and private bonds proved to be a
success in securing a steady revenue and strengthening the
annual revenue on investments
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PASI takes
great interest in increasing its portion of investments in real
estate to secure steady income from leased property and to
realize its policy of distributing its investments among the
various sectors
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