As a long-term institutional pension investor, and in
alignment with the Economic Modernization Vision, the Social Security
Investment Fund (SSIF) adopts an investment approach that balances return
maximization with capital preservation, ensuring the fulfillment of future
obligations toward contributors and pensioners.
This approach is underpinned by prudent and integrated
portfolio management, in line with global best practices in pension fund asset
management, and through the application of Asset-Liability Management (ALM).
This ensures the alignment of investment decisions with the Fund’s long-term
liabilities, while maintaining disciplined risk levels to support financial
sustainability.
Portfolio management is further anchored in strategic
diversification as a key risk management tool, achieving a balance between
stability and return through allocation across a range of asset classes and
sectors.
This diversification enhances the portfolio’s ability
to absorb market volatility and adapt to changing economic conditions, ensuring
stable performance and balance across different portfolio components.
Portfolio allocations are reviewed periodically within
an integrated institutional framework that considers macroeconomic developments,
interest rate trends, and local and global market dynamics. These reviews are
supported by in-depth analysis and both quantitative and qualitative risk
indicators, reinforced by forward-looking analysis and stress testing. This
ensures alignment of investment decisions with the Fund’s strategic objectives
and long-term liabilities, while strengthening its capacity to maintain
financial stability and meet its obligations with a high degree of reliability
and resilience.
Components of the Fund’s Investment Portfolio
- Money Market Instruments Portfolio: The portfolio consists of money markets instruments with maturity date that does not exceed 12 months such as deposits, treasury bills and others.
- Bonds Portfolio: The portfolio consists of treasury bonds, government bonds and corporate bonds with maturity date that exceeds 12 months.
- Loans Portfolio: The portfolio consists of medium and long term loans:
- Direct loans to the Social Security Corporation wholly owned companies.
- Direct loans to governmental institutions and government-owned companies.
- Participate in syndicated loans granted by commercial banks to corporates.
- Finance the Social Security Corporation personal loans window that are granted to its retirees and their widows to finance their personal small projects.
- Equity Portfolio: The portfolio consists of public listed companies stocks traded in Amman Stock Exchange and stocks of the strategic private equity companies.
- Real Estate Portfolio: The portfolio consists of investment in real estate sector: lands, commercial buildings and real estate development.
- Tourism Portfolio: This portfolio consists of all the investment in hospitality sector; hotels, rest houses, hotels apartments, etc.