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Portfolio
Management Policy for Portfolio Investment

Wafra Company manages several investment portfolios which fall under three categories:
 1-Portfolios managed by Wafra Company (Discretionary)
 2-Portfolios managed by Clients (Non-discretionary)
 3-Safe-keeping Portfolios

•The Department pursues a policy of distributing Portfolio assets that reduce market risk on capital, as much as possible, and also which achieves returns higher than the traditional market.
•The Local Department takes into consideration several factors in the selection of Equity Portfolio components, such as:
1-Companies that have distinctive annualized dividend cash returns and achieve continuous cash flow for the Portfolio.
2-Companies that depend on their operational activity to generate income.
3-Companies that have distinguished themselves by a high turnover rate due to trading in the market.
4-Companies that have distinctive and appropriate P/E.
5-Companies that have achieved a positive operational cash-flow.
6-Companies that own excellent assets.

In addition to the above factors, selecting portfolio components will be conducted after studying the market and economy in general with particular emphasis on how the portfolio may be affected by current market activities and level of demand and supply.  Furthermore, Wafra’s Research and Analyses Division conduct technical appraisals for those companies.

 

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