19/11/2017
the first meeting of the second session of the Awqaf Diwaniya in Asharqia Chamber.
Jadwa
Investment Executive Manager Tariq Bin Ziyad Al Sudairy stressed that the
availability of the sustainable and developing funds contributes to the
successful completion of the Waqf mission and that targeting high
returns from the endowment is not necessarily the best option.
This was in the first meeting of the second session of the Awqaf Diwan,
held by Asharqia Chamber, represented by the Social Responsibility
Center, recently, in cooperation with Afaq Al Awqaf and sponsored by
Hamad Al Husaini Charity Foundation and witnessed a large presence of
businessmen and interested parties in the third sector. Challenges and methods of investing endowments and the role of endowment funds in addressing these challenges.
Prejudice of the known
And
the number of challenges that hinder the application of best practices
for the management of endowments investment, such as endowments in kind,
which limit the investment capacity of the moratorium in a variety of
portfolios, administrative focus and bias to the known, such as bias to a
specific category of assets or geographies, as well as the small size
of the moratorium and the fog of governance in the lack of clarity In the powers and mechanisms of decision-making and the absence of specialized committees to monitor and guide the stay.
Al Sudairy
pointed that the importance of ensuring the extent of the Waqf's ability
to withstand risks. He pointed that
the strategy of allocating Waqf assets is carried out through four ways that start with the liquidity requirements, including the target and risk calculations to move to take into consideration the religious
and ethical requirements and any other restrictions such as geographical
restrictions for building an appropriate mix of asset classes and geographical areas.
Waqf Investments
Al Sudairy
pointed that there are six steps to achieve
the best practices of the management of Waqf investments, such as
identifying the sources and uses of endowment funds, stressing the
importance of monitoring the future prospects for the sources and uses
of these funds, and also study the target return of the Waqf and
the strategy necessary to distribute its assets,
which provides a better return over the long term, in addition to defining
the structure of the Waqf governance along with its operational
structure and the optimal management model for its management, as these
structural steps contribute to protection against borrowing.
He
pointed that the evolution of the mechanism of investing these
endowments for five consecutive decades, followed by a variety of
investment portfolios of asset classes, such as Harvard, Bill,
Bernstein, Stanford and other universities. Markets and a good level of liquidity, making them the top
institutional investors and enabling them to achieve strong returns over
the last fifteen years at an annual rate of 0.9%. He called for
adopting the experience of these waqf universities as an example to be
followed.
Cost of management
Regarding the Waqf funds, Al Sudairy.said that they are funds in which funds are
collected from various waqf entities and that according to their rules,
the investments are managed by a specialized investment team,
the manager supervisory team. It is based on the idea of dealing
with one investment entity instead of dealing with Investment managers in different assets and geographies, and in turn
reduces the cost of investment management by allocating the
administrative costs of investments to all participating waqf entities.
At the end of the meeting, the Secretary General of Asharqiah
Chamber, Abdulrahman bin Abdullah Al Wabel, presented a memorial sheild to Tariq Bin Ziyad Al Sudairy.
