Hassan Al -Sitry
Asset Management Company (assets) confirmed that the investments of the funds affiliated with the General Authority for Social Insurance are being managed by the authority itself, and this continued until the asset company was established in 2011, which all its administrative apparatus were activated to start its work in the 2013 fiscal year. It indicated that investments of the General Authority for Social Insurance are being managed by a professional private institution that collects specialized investment expertise in this field, and has a council. A specific administration by the authority, subject to the provisions and control of both the Central Bank of Bahrain and the Financial and Administrative Supervision Bureau.
She explained that there are two followers and subject to the supervision of the Board of Directors of the Asset Management Company “Assets” and they have a separate board of directors for each of them, and the first company is represented in the “Amlak Real Estate” company that was established in 2008, which specializes in managing and developing real estate property of the General Authority for Social Insurance and the Military Retirement Fund, while the second company is represented in the “Bahrain Marina” company that was established with the aim of real estate with the aim of real estate with the aim of real estate with the aim of real estate with the aim of real estate with the aim of real estate with the aim of real estate with the aim of real estate with the aim of real estate with the aim of real estate with the aim of real estate with the aim of real estate with the aim of real estate For the same project bearing his name, the two companies are subject to the supervision of the Board of Directors of the Asset Company “Assets”, which in turn submits periodic reports of the Board of Directors of the General Authority for Social Insurance on the financial performance of the company.
She stated that each of the “assets management company” and “Amlak Real Estate Company” was established based on Law No. 3 of 2008 regarding the Public Authority for Social Insurance, where the General Social Insurance Authority at the time owns 75% of the classes of assets company, while the military retirement fund has 25% of the company’s shares, while the Amlak company is considered entirely owned by the authority, and with the new trends regarding the issue of supervision of all Investments of the General Authority for Social Insurance by the Asset Management Company “Assets”, in 2021, the authority decided to transfer the company from a company owned by it to a private royal company subject to the supervision and supervision of the authority and has an independent board of directors whose members are appointed by the authority, and this comes with the aim of improving performance in the investment sectors.
The company indicated that it depends on working on the policy of studying the needs of its customers from the retirement funds and military retirement, the insurance against the disruption and finally the insurance fund at the end of the service that was created recently, so that the requirements of those funds and goals that are aimed at them are studied, in addition to analyzing the percentage of acceptable risks for them, and in light of this the correct strategic distribution of the appropriate investment groups is placed for each fund according to the market data, with the aim of achieving the greatest return in a way correct.
The number of employees working in the asset management company “assets” is 52 employees, where 22 of them provide services such as human resources, information technology and legal affairs to each of the “Real Estate property” and “Bahrain Marina” companies, and the percentage of Bahraini staff from the company’s employees is now about 90% of its total employees, where the expertise of foreign employees working in the company has been used previously, and work to provide the correct training programs For Bahraini employees, and qualify them in the way that enabled them to obtain the necessary specialized certificates in the field of investment, which contributed to the process of replacing the company’s employees and reaching the percentage that was referred to.
6% has been put in place since the establishment of the company as a return targeting of the investment governor of the authority’s funds, where the required percentage was exceeded and 7% of the returns were achieved in the previous periods that were working in it properly, except that after starting the “liquidation” stage, as is the case now, it has become very difficult to achieve these numbers.
The investment returns that have been achieved for the authority from the establishment of the company until the present time amounted to 1 billion and 600 million dinars, while the withdrawals of the authority amounted to about 2 billion and 400 million dinars, which makes the investment climate inappropriate on the grounds that the focus is currently focusing on securing the issue of liquefaction and withdrawals to avoid any risks on the resources of boxes. The volume of the company’s capital paid for 3 million Bahraini dinars in 2013, and this amount has been worked on to reach approximately 24 – 25 million Bahraini dinars today.
“Assets” stated that the volume of investments in the real estate fields managed by the company and the real estate property company for the benefit of the General Authority for Social Insurance are not large in its entirety, and several methods are used in the case of sale, such as selling the property directly or through auctions, and the process of selling these properties is not carried out except after preparing studies to assess the market status in its time, and therefore the sale is made, whether by fair value of this property or at a higher value than that.
Work is done to prepare studies to evaluate the status of all real estate and lands of the authority’s portfolio, and accordingly they are classified and the appropriate plans are prepared for real estate that are better to be kept and developed, and those that need to be sold.
The company manages 45 real estate lands from the property of the Public Authority for Social Insurance, and the lands were classified based on its locations and the availability of infrastructure services. A comprehensive evaluation of the market value of all real estate is conducted annually, feasibility studies are prepared for lands located in strategic areas, to show the feasibility of their investment or not.
The company indicated that the real estate sale method was not feasible through auctions, and some lands were started to market through local real estate agents, as agreements were signed with more than 45 real estate agents. With regard to the sale of real estate to foreigners, the company is committed to the laws and provisions regulating this matter. As for the issue of entering into investment partnerships with foreigners, a number of investment offers have arrived by some foreign investors and developers, where these offers were studied and analyzed, but it was found that they were not feasible until now, yet the door remains open to enter these companies in the event of good offers from them.
The volume of the insurance against the disruption at the present time reached 487 million BD, after fulfilling all its obligations, and the investment performance of the Insurance Againing Fund is positively positive during the financial two years 2022 and 2023, when taking into account the political events on the global stage and the increase in the rates of inflation and high interest rates, in addition to the economic difficulties the world witnessed; Because of the Korona-19 Virus of the Corona-19, and when comparing the results of the fund with other international funds similar to it during the past two years, during the fiscal year, 2022 positive returns have achieved 0.2% while the rest of the funds achieved negative results during this year, and for the year 2023, the fund has achieved positive returns by 3.8%, while other funds have achieved positive returns at rates ranging between 10%- 11%, accordingly, when taking the average performance of the fund for these two years, it turns out that it has achieved positive returns estimated at 2.5%, while other funds have achieved positive returns estimated at 1.5% to 3%.
