THE Social Security System (SSS) wants to invest overseas, as part of a diversification strategy aimed at growing its reserve fund to P2 trillion by 2030 while maintaining its funds in the Philippine capital market.
SSS President and CEO Robert Joseph de Claro on Friday said the planned expansion into global markets would complement, rather than replace, the pension fund’s domestic investments.“Exploring foreign investment opportunities does not signal a reduced presence in the Philippine market. Instead, it aims to enhance the SSS’ existing domestic portfolio through increased geographic and asset-class diversification,” de Claro explained.He pointed out that the pension fund’s stronger financial position has given it greater flexibility to pursue new investment opportunities while continuing to support domestic capital markets.“We are very conservative, but at the same time, we are now in a very strong position, thanks to our surplus. For the first time, we have the opportunity to help build the nation,” de Claro said.As of June, the SSS had P1.27 trillion in consolidated investments, spread across government securities, equities, property, member loans and corporate debt instruments.Government securities accounted for the largest share at P629.05 billion; followed by equities, P179.44 billion; property, P154.56 billion; member loans, P151.90 billion; and corporate notes and bonds, P96.34 billion.The portfolio generated P27.16 billion in investment income in the first half of the year, equivalent to an annualized return on investment of 4.53 percent.De Claro said the figure excluded realized gains from the sale of equity securities classified as fair value through other comprehensive income.Targeting a P2-trillion reserve fund by 2030 will strengthen the SSS’ capacity to meet the long-term social security needs of members and pensioners, de Claro said.
