|
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 meet its obligations towards the insured. In this context the
investment plan adopted by the Establishment takes into
consideration both 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.
Asset Allocation in
2003-2004
|
Type
of Investment |
DEC
2003 |
DEC
2004 |
|
Local
and foreign stocks |
31.3% |
34.8% |
|
Local
and foreign funds |
4.2% |
4.7% |
|
Special international stocks and funds |
0.8% |
0.8% |
|
Short
term assets |
34.6% |
25.8% |
|
Government Bonds |
22.6% |
23.5% |
|
Private bonds and depository certificates |
4.1% |
8.3% |
|
Real
estate – Local |
2.4% |
2.1% |
|
Total |
100% |
100% |
PASI investments
are subjected to revision from time to time with the aim of
relocating them in compliance with the Investment guidelines in
view of the capital markets fluctuations
Table 2 illustrates the geographical investments allocation both
locally and internationally in the years of 2003 and 2004
Geographical
Allocation of Investments - 2003-2004
|
Type of Investment |
DEC 2003 |
DEC 2004 |
|
Investments made
locally |
93.2% |
93.3% |
|
Investments made
internationally |
6.8% |
6.7% |
|
Total |
100% |
100% |
MSM and most
international security markets have had excellent performances in
2004 resulting in positive impacts on PASI investments as a whole.
PASI
Investment ِActivities in 2004
The market prices of shares owned by PASI portfolio shot up by 34%
in 2004. This was a result of the investment selection. The revenue
from local shares increased by 23.4% in 2004 with MSM’s general
index witnessing to a high rate of increase. The Central Bank of
Oman issued 3 bonds during the year 2004 with interest rates varying
between 4.5% and 5%. PASI having subscribed in all three issues,
within the limits set in its Investment guideline, had secured an
annual revenue of 5.2%. In private companies shares PASI secured
annual revenues ranging from 4.25% to 6.25% according to the rates
of interest offered.
PASI has not acquired land plots or property in 2004; nevertheless
the ongoing efforts of the investment committee are likely to result
in excellent investment opportunities in this field in 2005.
However, 2004 had witnessed the launching of designs for 3
commercial and residential buildings to be constructed in Muscat
area. The revenue from existing property amounted to 7.4% equal to
10.5% of the invested sums. The market prices of the Est. property
investments constitute 2.1% of the total investments in 2004. The
market prices of the Est. investments in foreign shares in 2004 rose
by 13.6% as compared to the previous year. The establishment also
received dividends from sales of projects owned by special funds in
which it had invested. The various types on investments have secured
annual local revenue amounting to 10% of the invested funds through
out 2004 where as the percentage of local revenue amounted to 13.7%
of the invested funds in 2003.
2005 is expected to witness positive performances in MSM as well as
short and medium term investments causing a situation of
encouragement to expand investments.
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 PESI
The Est. is also determined to expand its investments in foreign
shares and funds in compliance with its regulations governing its
investment policies to maintain a high level of profitability and
security of its invested funds
Back
|
