SSS eyes overseas investments

MANILA, Philippines — State-run Social Security System (SSS) said it is studying the possibility of investing in the international market in a bid to boost its profits and diversify its investment portfolio.

SSS president and CEO Emmanuel Dooc said the state provident fund is eyeing to infuse funds into the international capital market, much like the plan announced by the Government Security Insurance System (GSIS) earlier.

“We would like also to do the same thing. In fact, now, although we are allowed to do investment, we have not invested overseas,” Dooc told reporters.

GSIS earlier said it is planning to infuse $800 million for foreign-currency denominated investments.

“Based on the experience of the GSIS where they reported good returns, we will also consider that. That’s why we are in touch with some investment advisers from abroad and also, for diversification purposes. You know, we don’t like to restrict our investments in one basket in the local economy, in the domestic investment market. So we will definitely study it, that is in our business plan,” he said.

In line with this, Dooc said SSS is pushing for the amendment of its charter, which would allow the Social Security Commission (SSC) – the policy making body of the SSS – to reallocate or redistribute portions of its investible funds into certain financial instruments.

“The amendment will empower us to recast or redistribute the ceilings. So we can say, set aside a bigger percentage,” he said.

Currently, SSS is allowed to invest at most 40 percent of its investible funds into government securities, 10 percent into membership loans and 30 percent on equities, among others.

As for overseas investments, Dooc said the ceiling is seven percent of the investible fund. “Under the law, we have seven percent for overseas (investments), so seven percent of P490 billion more or less, that’s how much we can put in,” he said.

“What we need is an expert advice. We have to get fund managers who are well-versed in international or foreign investments,” he added.

SSS has cited its need to earn higher revenues amid rising expenditures brought about by a P1,000-hike in pension benefits.

Based on SSS data, the agency’s investment income as of end-November 2017 rose 6.4 percent to P30.58 billion from P28.74 billion in the same period in 2016.

Its full year 2017 net income, meanwhile, plunged 71.85 percent to P9 billion from P32 billion the previous year.

Dooc attributed this to the P32 billion additional benefits released to SSS member-pensioners since January last year.