SSIF Assets reach JD 9.3 billion and comprehensive income increases to JD ‎‎343.5 million at the end of 2017‎

Social Security Investment Fund (SSIF) Executive Chairman Suhair Al-Ali said that based on the preliminary standalone statements as at the end of 2017, the Fund's total assets reached JD 9273.5 million compared with JD 8325.3 million at the end of 2016, an increase of JD 984.1 million, representing an increase of 11.4%.
Al-Ali added that the comprehensive income has been edging up over the last year, ‎ registering JD 343.5 million at the end of 2017, compared with JD 137.5 million at the end of 2016, representing an increase of 150%.

Al-Ali said that the comprehensive income consists of the income generated from the return on investment in the Fund’s various investments in money market instruments, bonds, loans, public and private equity, real estate, and dividends coupled with the revaluation of the Fund's strategic equity portfolio. 
The unrealized losses of the Fund’s strategic equity portfolio traded in Amman Stock Exchange (ASE) amounted to JD 25.1 million at the end of 2017, compared with JD 121 million at the end of 2016. Whereas, the realized losses at the end of 2017 amounted to JD 0.7 million compared with JD 56.6 million at the end of 2016. Al- Ali pointed out that the Fund incurred JD 56.6 million in losses during 2016 as the General Assembly of the Jordan Telecommunications Company resolved to reduce its capital by 25% in a decision taken in 2015.


Al-Ali said that the revaluation profits/losses is an accounting evaluation that is directly impacted by the performance of Amman Stock Exchange (ASE)  as the Fund's investments constitute around 11.3% of the ASE market capitalization. Thus, the Fund’s comprehensive income registers an increase when the ASE's performance is high and it may incur losses when ASE's performance declines.

Al-Ali pointed out that ASE's performance has been positive since the beginning of 2018. Accordingly, the Fund's public equity revaluation reflected the positive performance of the ASE, with the value of SSIF's public equity portfolio increasing by JD 171 million during the first 2 months of 2018, an increase of 9.2%.
The Fund , as a national long term investor, takes  many steps that are fully consistent with the investment policy to diversify its investment portfolio  in order to achieve the required return on investments within acceptable  risk levels. Accordingly, the Fund has contributed to the economic development in Jordan through establishing and  participating in mega  projects that create jobs in different  sectors, i.e.: energy , infrastructure, tourism and development areas. 

In the second half of 2016, the Fund established a wholly owned company “Daman Financial Leasing Company” to manage the SSIF investments in the financial leasing sector in all governorates. SSIF  has allocated an initial amount of  JD 400 million to finance investments in the field of financial leasing, of which around JD 96 million is now under way  in financing the Amman Customs Depot ( Madona) and  JD 37 million for financing Tafileh Hospital. The company is also currently studying  financing a number of vital projects in transportation, health, education sectors throughout the Kingdom.

The Fund also established “Daman for Development Zones Company” (DDC) in 2009 as a private shareholding company  to be  Fund’s  investment arm in the infrastructure development, services and marketing for the King Hussein Bin Talal Development Area in Mafraq and Irbid Development Area.  DDC owns 80% of the capital of “Mafraq Development Corporation”, which is the main developer of the King Hussein Bin Talal Development Area. The investments in Mafraq area are mainly in the industrial, logistics, transportation and renewable energy sectors. Mafraq Corporation  signed an agreement in November 2017 with a specialized company to set up a logistics airport and hub  to boost the Jordanian exports to regional markets. The logistics airport will operate in parallel with the dry port that will be used for commercial purposes.

DDC also owns 100% of the capital of “the North Development Corporation”, which is the main developer of the Irbid Development Area. The investments in this area are mainly in the information technology, telecommunications, and support services sectors. The North Development corporation recently completed the marketing study of the area and the master plan and infrastructure designs will be finalized by end of 2018. 

The Fund also invests through its investment arms in the conventional and renewable energy sectors with a total investment of around JD 92 million.  
It is worth noting that the Fund’s investments in the development areas, hospitality and financial leasing sectors have been vital in creating over 2500   jobs for  the local communities.  
As an anchor local investor, SSIF is constantly exploring new investment opportunities and feasible projects  that meet SSIF’s investment criteria  and contribute positively to the Jordanian economy, stressing that the Fund’s performance is a mirror  of the Jordanian economy and its various indicators and is directly impacted by them.

Al-Ali stressed that the Fund’s investment decisions are made based on pure investment criteria and economic feasibility and in accordance with clear and transparent guidelines. The Fund’s  operations are also managed based on good governance principles and in line with the best internationally-adopted practices.