Investment diversification is one of the most important investment principles and one of the most important risk management policies. It is concerned with distributing the investment portfolio over more than one investment instrument, and within a budget that carefully takes into account the distribution ratios between investment instruments to achieve two goals: The first is to reduce investment risks, and the second is to maximize the return on investment. Regarding the work of the Security Fund Investment Fund, it is noted that there is a clear defect in two basic matters: First: not reaching an optimal investment portfolio (Portfolio Optimization). Second: Weakness in asset and liability management. In addition, it seems that the Fund does not care much about the results of the actuarial studies conducted by the Guarantee Institution through a neutral and globally accredited actuarial team. On top of this, it also appears that effective coordination between the Guarantee Institution with its various concerned departments and the various investment departments is also very weak or almost absent. This situation needs to be immediately reviewed and gradually corrected at the highest level in order to reach acceptable results and good investment returns. We are talking about the largest investment fund in the Kingdom that currently manages (14.5) billion dinars. I am confident that the current management of the Fund and the Foundation are capable of correcting the situation in a thoughtful and gradual manner in order to achieve the best possible investment returns that contribute to ensuring the financial sustainability of the Foundation’s growing insurance system.
Journalist and jurist/ Musa Al-Subaihi
Investment diversification is one of the most important investment principles and one of the most important risk management policies. It is concerned with distributing the investment portfolio over more than one investment instrument, and within a budget that carefully takes into account the distribution ratios between investment instruments to achieve two goals: The first is to reduce investment risks, and the second is to maximize the return on investment. Regarding the work of the Security Fund Investment Fund, it is noted that there is a clear defect in two basic matters: First: not reaching an optimal investment portfolio (Portfolio Optimization). Second: Weakness in asset and liability management. In addition, it seems that the Fund does not care much about the results of the actuarial studies conducted by the Guarantee Institution through a neutral and globally accredited actuarial team. On top of this, it also appears that effective coordination between the Guarantee Institution with its various concerned departments and the various investment departments is also very weak or almost absent. This situation needs to be immediately reviewed and gradually corrected at the highest level in order to reach acceptable results and good investment returns. We are talking about the largest investment fund in the Kingdom that currently manages (14.5) billion dinars. I am confident that the current management of the Fund and the Foundation are capable of correcting the situation in a thoughtful and gradual manner in order to achieve the best possible investment returns that contribute to ensuring the financial sustainability of the Foundation’s growing insurance system.
Journalist and jurist/ Musa Al-Subaihi
Investment diversification is one of the most important investment principles and one of the most important risk management policies. It is concerned with distributing the investment portfolio over more than one investment instrument, and within a budget that carefully takes into account the distribution ratios between investment instruments to achieve two goals: The first is to reduce investment risks, and the second is to maximize the return on investment. Regarding the work of the Security Fund Investment Fund, it is noted that there is a clear defect in two basic matters: First: not reaching an optimal investment portfolio (Portfolio Optimization). Second: Weakness in asset and liability management. In addition, it seems that the Fund does not care much about the results of the actuarial studies conducted by the Guarantee Institution through a neutral and globally accredited actuarial team. On top of this, it also appears that effective coordination between the Guarantee Institution with its various concerned departments and the various investment departments is also very weak or almost absent. This situation needs to be immediately reviewed and gradually corrected at the highest level in order to reach acceptable results and good investment returns. We are talking about the largest investment fund in the Kingdom that currently manages (14.5) billion dinars. I am confident that the current management of the Fund and the Foundation are capable of correcting the situation in a thoughtful and gradual manner in order to achieve the best possible investment returns that contribute to ensuring the financial sustainability of the Foundation’s growing insurance system.
Journalist and jurist/ Musa Al-Subaihi
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Towards a fundamental correction of security fund investments
 
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