PASI study to help investment managers
A study was conducted by Public Authority of Social Insurance (PASI) aimed at helping PASI’s board of directors in risk assessment to determine a long-term asset allocation strategy. According to Ishaq al Mawaali, Head of Asset Management at PASI, the study, ‘Asset-Liability Management for Pension Funds (ALM)’ looked at making appropriate allocations among major asset classes and help establish a suitable long-term investment policy.
PASI’s strategy depends on its investment objectives, governance levels and investment beliefs. “Our trustees believe the best strategy is the one that helps the fund grow as much as possible, subject to investment guidelines,” he said. Aiming at finding a scheme for Omani employees working in the private sector, PASI has adopted two types of insurance: one against old age, disability and death, and another against work injuries and work illnesses.
For the first type, employee contribution rate stands at 6.5 per cent, employer will contribute 9.5 per cent and public treasury 4 per cent. For the second, 1 per cent contribution comes from the employer. As a pension fund, PASI has a fiduciary duty to invest the accumulated contributions in several asset channels in favour of those insured. Al Mawaali said the latest study, conducted in 2006 and reviewed in 2011, helps investment managers and the actuary (a business professional who deals with the measurement and management of risk and uncertainty) understand investment requirements.
It provides a way of examining the implications of different investment policies and different future funding and membership scenarios. It also provides a framework for companies and trustees to take part in the financial planning of a fund. “All social security institutions, respective of their size, should develop a strategy and implementation plan that is properly aligned with the individual institutions’ strategy,” Al Mawaali said. Talking about a framework for ALM, he said it should be practical as ALM isn’t a static activity. “It continues to evolve. Yet, a periodic and detailed review process has to be built into the framework to ensure the focus remains appropriate and relevant.” A total of 63,301 properties were issued to citizens in the first three months of this year, according to National Centre for Statistics and Information (NCSI) and Muscat Municipality.
However, the number of residential plots issued during the same period saw a 26.2 per cent decline compared with last year. A total of 7,581 plots were issued in the first quarter of 2017 as against 10,269 in the Q1 of 2016.
The number of building permits sanctioned saw a big leap in 2016, with Wilayat Seeb securing the maximum number of building permits.
A total of 23,047 property deeds were issued in March, 19,064 in February and 21,190 in January.
A statement from the Ministry of Housing said it was currently building 203 residential units, 46 double housing units (twin villas), a mosque, a public majlis hall and public facilities at a total cost of RO 9.5 million in different wilayats.
“Work is in progress on the construction of 26 twin villas in Al Khoud in the Wilayat of