GOSI, PPA achieved 8% return on investment in last 3 years, says CEO of Hassana

Logos of GOSI and PPA

The General Organization of Social Insurance (GOSI) and the Public Pension Agency (PPA) recorded above 8% return on investment (ROI) over the last three years, said Saad Al-Fadly, Chief Executive Officer (CEO) of GOSI's investment arm Hassana Investment Co.
 

He told Al-Arabiya TV that such returns are satisfactory compared to global peers, expecting no substantial changes to the investment strategy following the merger.

The portfolio components of the two institutions and the new entity include investment in local and global markets, while seeking strategic diversification to achieve their targets. The portfolio currently includes international stocks and bonds, as well as other alternative investments such as private equity, etc., according to Al-Fadly.

"The local market is key for us. We have a relative privilege for being a local investor that is well aware about the market. This is in addition to the huge opportunities that we expect to emerge with the programs of the Kingdom's Vision 2030, especially privatization and investment infrastructure," said Al-Fadly.

Over the last years, both institutions established two investment management firms, namely PPA's Raidah Investment Company (RIC) and GOSI's Hassana. The structure of these investment arms will be assessed and studied over the coming period to capitalize on them and their ability to streamline efforts in a manner that will be for the interest of the new entity, said Al-Fadly.

He noted that the entity is not planning to manage firms or impact the progress of their operations, as most Saudi-listed companies are distinguished for their high level of governance.

Asked about new plans for investing in Tadawul-listed companies, Al-Fadly indicated that the portfolio is constantly managed, and is monitored and assessed periodically to achieve the highest possible returns in the long run.

Last week, Saudi Arabia’s Cabinet approved merging PPA into GOSI, Argaam reported.
 

The asset value of the entity formed following the merger is estimated at above $250 billion.