Capital preservation and optimization of risk-return trade off constitutes the prime goals of Jordinvest Asset Management and Capital Markets Department.
Through constant monitoring of the local and Arab stock markets, the unit uncovers value and identifies lucrative investment opportunities and trading channels. Particular emphasis is placed on locating securities that are either undervalued and/or have strong growth potential.
To achieve its objectives, the unit employs disciplined portfolio construction, asset allocation, continuous portfolio rebalancing, and risk management tools.
As a first step, we believe that a disciplined investment process starts with a clear identification of each investor's return objectives and constraints as well as his/her risk tolerance level. Accordingly, we believe that optimizing the risk/return profile of any portfolio is best achieved through prudent diversification, both at the asset class and the geographical levels. Thus, assets are allocated to different instruments in almost all Arab capital markets utilizing a wide network of partners and financial correspondents in these markets. In addition to managing its own funds, Jordinvest provides structured portfolios targeting pension funds, insurance agencies, corporations, and individual investors on both full discretionary and non-discretionary bases.
Aside from portfolio management, Jordinvest was the first to establish and manage mutual funds in accordance with Jordan's Securities Act no (23) of 1997. Since its launch in 2000, the First Trust Fund for Financial Securities managed to achieve an average annual return of 24%, while its actual return in 2005 exceeded 30%.