MANILA, Philippines - The Home Development Mutual Fund (Pag-IBIG Fund) is projecting its net income to grow 15 percent to P15 billion this year, from P13 billion registered in 2012.
Likewise, Pag-IBIG president and chief executive officer Darlene Marie B. Berberabe said the state-run fund is looking to increase its membership base from the present 12.6 million to about 20 million this year.
An increase in the number of members has a direct bearing on its earnings stream as contributions would also grow. A member is mandated to make a contribution of at least P100 a month.
Berberabe said the principal target are the overseas Filipino workers (OFWs), three million of which are already members. Others include domestic helpers or kasambahays, the self-employed, and professionals.
So far, but the biggest contributors to Pag-IBIG’s earnings are housing and member loans.
Pag-IBIG has a housing loan portfolio worth over P21 billion. It also has P40 billion in investible funds other than the housing and cash loans.
“We are in talks with fund managers for investments in the equity or stock market,†Berberabe said, adding they are also looking at the accreditation parameters for hiring a private fund manager.
Pag-IBIG is mandated to invest up to 70 percent of its portfolio in housing while the rest are for member loans.
It has declared a dividend package worth P9.3 billion, which goes to its members unlike other government financial institutions (GFIs) that must remit up to 50 percent of their annual net earnings.