State-run Social Security System (SSS) said over the weekend that it allocated a massive P9 billion from its investment reserve fund (IRF) to place into various investment vehicles, which will be managed by local fund managers.
According to SSS, the amount is already deployed to each of its three balanced fund mandates with local fund managers selected via open and competitive bidding to handle the money.
“SSS opened for bidding the hiring of nine local fund managers to manage the P9 billion fund. The P9 billion fund was divided equally to three types of mandate namely: Balanced Fund Mandate, Pure Equity Fund Mandate, and Pure Fixed Income Mandate,” the pension fund said.
“SSS deployed P1.0 billion each to Rizal Commercial Banking Corporation, BPI Asset Management and Trust Corporation, and ATRAM Trust Corporation, under the Balanced Fund Mandate. Fund managers for Pure Equity Fund Mandate were BPI Asset Management and Trust Corporation, Metropolitan Bank and Trust Company, and Philequity Management, Inc.. BPI Asset Management and Trust Corporation was also entrusted the lone Pure Fixed Income Fund Mandate,” it added.
With this development, SSS President and CEO Aurora Ignacio expressed her optimism that the investments will help them grow the agency’s assets as well as learn from the investment experts.
“The SSS management believes that it can benefit from the investment, value-added services of the fund managers such as training, access to proprietary investment analysis and information and access to business analytics,” Ignacio said.
Meanwhile, P2 billion allotted for two local fund managers will be open for rebidding this year, said Ignacio.
Earlier, SSS bared plans to increase its profits this year in return of investment terms, following the legislation of the new SSS charter or law, which allowed the agency to further diversify investments.
As of end-2018, the pension fund’s IRF reached P495.6 billion, of which government securities took the lion share of 43 percent followed by both equities and member loans with 19 percent.