Retirement: 46% return on investment in SMEs

The retirement institution achieved returns amounting to 46% of investment in the stock portfolio of small and medium-sized companies, while the volume of investment in the real estate sector reached 17 billion riyals. The Governor of the Public Pension Agency, Muhammad bin Talal al-Nahhas, said: The Corona pandemic in a press statement – yesterday It created attractive investment opportunities, after prices reached low levels, which opened the appetite of investors, indicating that the corporation established last April a portfolio to invest in the shares of small and medium-sized companies that achieved returns of more than 46%. Al-Nahas added that during the Corona crisis, the corporation invested in technology sector companies and achieved returns of about 19%. He indicated that the corporation’s investments were affected by the Corona pandemic temporarily, indicating that the diversity of assets had a great role in the durability and strength of the institution’s investment portfolio and that the portfolio is subject to analytical scenarios and tests to absorb the most prominent shocks and has the ability to predict well. He added that after the restructuring of the pioneering investment company owned by the corporation, cumulative returns were achieved by 27% over the past 3 years, with an annual rate of return of 7.6%. He explained that the Foundation’s investments are distributed in most countries of the world through developed and emerging markets, and it is a strong investor in the Saudi market by more than 50% through investment in 67 listed companies and 3 funds. It also invests in more than 19 companies not listed in the market and in the publications of the Center. Public debt for sukuk and bonds in addition to the real estate sector. He pointed out that the corporation has huge investments in the real estate sector that exceeded 17 billion riyals, and it has mega projects in Riyadh and Jeddah, where occupancy is 100%. He emphasized that the corporation’s investment portfolio is subject to strategic distribution, and this is preceded by an actuarial study, and through it and the recommendations of the Board of Directors, the process of strategic distribution of the portfolio begins, to fulfill obligations, whether short, medium or long term. Regarding the number of retirees, Al-Nahas pointed out that their number reached 42,000 retirees during the current year, 35% of whom were early retirement, stressing the importance of matching expenses and revenues.

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