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Tamer Hammad –
KIA confirmed that the alternative investment sector had invested in 12 international companies during the period from 2007 to 2012, including the French company Areva for about $ 12.8 billion spread across 12 companies through the main portfolio of contributions: Visa-BlackRock-AIG-ICBC. -ABC Bank-AIA-CITIC-Bank of America-DowChemical.IHH Healthcare-Citi-Areva.
The Authority added that the current value of these investments added to the profits made with them approximately $ 31.8 billion as at April 30, 2019 after the loss of the company "Areva" and therefore constituted a net profit. since the beginning of these investments in 2007 and today about 19 billion, 148.75% if all investments made by the portfolio during this period are taken into account.
The TRA has identified the investment controls adopted when buying actual shares:
1 – The objective of the portfolio is to obtain in the medium and long term superior returns on market returns in the investment sectors of the general reserve fund and the future generation reserve fund by investing in equity all types of high yield securities or stocks expected to experience high growth or current yield. high
Investment Controls for the Portfolio
– Clbades of Available Assets: Investments in listed and unlisted shares such as common and premium shares, convertible bonds and others.
– Term: period of investment in the portfolio in the medium and long term in the medium term (more than 5 years). Management may recommend the exit in fewer periods if the outflow of a short-term investment is judged better or if management believes that the exit may provide an appropriate opportunity to hedge the fluctuations. Infringement of the interests of the Authority.
– cut:
• The maximum size of the individual investment should not exceed 10% of the total market value of the investment at the time of the beginning of the investment or the value of the issued capital.
• The total market value of all properties in the satellite portfolio (whether Generations for the Future Fund or the General Reserve Fund) does not exceed 10% of their total value individually.
– Accounting treatment: Investments in the satellite portfolio are treated as investments in accordance with the accounting policy applied in each of the future reserve funds – General Reserve Fund.
INVESTMENT PROCESS Identify, monitor, subtract, identify and report a satellite portfolio
1. The sector concerned identifies the investment opportunity.
2. Conduct all necessary badyzes (evaluation, investment horizon, risk / return factors, non-disclosure studies, etc.) of the target investment opportunity, then submit them to the responsible party. sector for discussion and approval.
3. The Area President discusses with his staff the opportunity presented in a detailed and precise manner and, after taking a decision by consensus, to submit his recommendation on the opportunity for investment (purchase / sale). sale) to the Director General,
• A detailed study of the investment opportunity offered.
• The mechanism to follow (buy / sell) includes: size of investment, duration, exit policy (purchase) and others.
4. The Executive Director reviews the offer submitted by the sector and, if approved, submits the matter to the Executive Committee for accreditation.
5. Once the Executive Committee has approved the investment opportunity presented and the Chair of the Board of Directors of the Authority and the Minister of Finance have approved the decision, the relevant sector will take all the measures necessary to implement the decision of the executive committee.
6. The Executive Committee will receive a periodic report on the satellite portfolio.
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