PASI has always sought to allocate its investments in order to achieve higher revenues and to maintain steady levels of cash flow to enable the establishment to meets its obligations towards the insured. In this context the investment plan adopted by the establishment taking into the consideration the revenue and risk factors. The following table illustrates the types of investments allowed by the investments guidelines as well as the ratio for each investment.

Following are the types and ratios of investment allowed by the regulations governing the activity.

Allocation of Invested Assets According to Types in 2003 and 2002
 

MSM and most other securities markets have had a good year in 2003, a situation which reflected positively on PASI revenues of investments.

PASI Investment Activities in 2003

The market prices of PASI investment portfolio shot up by 73% in 2003. This was a result of the investment selection. The revenue from local shares increased in 2003 with MSM’s general index witnessing a high rate of increase.

PASI has built two short term local stock portfolios, one is a trading portfolio and the other is a dividend earning shares portfolio. These portfolios are managed by a committee formed from PASI personnel. The trading portfolio achieved revenues equal to 24% of the investment sums. However, the Dividend portfolio was constructed towards the end of the year 2003.

The Central Bank of Oman issued 3 bonds issue number 29, 30 and 31 during the year 2003 with interest rates varying between 4.25% and 5.25%. PASI having subscribed in all three issues, within the limits set in its investment guidelines, has secured annual revenue of 5.4%.

In private companies shares PASI secured annual revenues of 7% according to the rates of interest offered.

PASI has not acquired land plots or property in 2003; nevertheless the ongoing efforts of the investment committee are likely to result in excellent investment opportunities in this field in 2004. The revenue from existing property amounted to 10.6% of the invested sums. The market prices of the Est.’s property investments constitute 19% of the total investments in 2003. The market prices of the Est.’s investments in foreign shares in 2003 rose by 32.5%.

The Establishment also received dividends from sales of projects owned by special funds in which it had invested. The various types on investments have received annual local revenue amounting to 13.68% of the invested funds through out the year 2003 where as the percentage of local revenue amounted to 4.66% of the invested funds in 2002.

2004 is expected to witness positive performances in MSM on the back of short and medium term investments.

The investment committee at PASI has exercised great efforts aiming at securing investment opportunities in the real estate sector. Hopefully, 2004 will witness the realization of these opportunities as well as the launching of three real estate investment projects to be constructed in plots owned by the establishment in Muscat Governorate.

The trend to privatize a number of communications and energy projects and companies as well as the launching of tourism projects and new public stock companies constitute new investment opportunities for PASI.

The Est. is also determined to expand its investments in foreign stocks and funds in compliance with its regulations governing it investment guidelines to maintain a high level of profitability and security of its invested funds.
 

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