SSS to tap private fund managers for P3-B funds

MANILA, Philippines - The Social Security System (SSS) will outsource, or tap private fund managers to help improve the state pension funds earnings from investments.

SSS president and chief executive officer Emilio de Quiros Jr. said they would initially tap three private fund managers to handle about P3 billion in investible funds.

De Quiros said that the SSS would select the fund managers based on the amount of assets presently being managed and their track record.

After open invitation and review, the SSS would hire three fund managers and evaluate them every two years.

The SSS has roughly P370 billion in investible funds, the potential source of investments.

If the outsourcing effort proved profitable, the pension fund would then venture into offshore investments, De Quiros pointed out.

 â€œIt is important to compare the performance of fund managers versus the SSS in-house fund managers. Likewise, we would be able to learn from them in terms of strategies, and better research,” he added.

The SSS is targeting a modest P34 billion in net earnings for 2014, slightly lower than the estimated net income of P38 billion last year, and the P36 billion recorded in 2012.

Nonetheless, the pension fund will continue to invest in the country’s stock market with a bias towards the consumer and power sector. It has placements in the equity market valued at roughly P15.5 billion, considered among the biggest single block in the market.

Contribution target is P119 billion, better than the P100 billion in 2013 and P94.2 billion in 2012. Roughly P3.1 billion in contributions came from overseas Filipinos in 2013, and the pension fund hopes to increase these to P3.5- to P3.8 billion from 900,000 SSS-member overseas Filipinos this year.