SSS eyes global market as investments reach P1.27T

MANILA, Philippines — The Social Security System (SSS) posted P1.27 trillion in consolidated investments in the first half, giving it more room to expand into foreign markets.

The state-run pension fund allocated the amount across domestic-market assets: P629.05 billion in government securities, P179.44 billion in equities, P154.56 billion in property, P151.90 billion in member loans, and P96.34 billion in corporate notes and bonds.

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These investments generated P27.16 billion in actual income by June, which corresponds to an annualized return on investment of 4.53 percent. This figure does not include realized gains from selling equity securities classified as fair value through other comprehensive income.

The SSS has long been planning to invest in international markets, with the Social Security Act of 2018 allowing the pension fund to place up to 7.5 percent of its investment reserves in foreign-currency-denominated investments.

SSS President and CEO Robert Joseph de Claro earlier told reporters that the pension fund was finalizing a policy on foreign investments, which still needs approval from its board. He said the agency has proposed allocating 1 percent of its 2027 proposed budget to invest in foreign markets.

“We are very conservative, but at the same time, we are also in a very good position now because of our surplus, that for the first time, we have an opportunity to help in nation-building,” de Claro said.

However, De Claro has yet to provide a timeline for the approval of the policy.

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READ: SSS eyes global investment opportunities

Still, SSS plans to increase its overseas investment exposure to 7.5% within five years, potentially totaling about $200 million.

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Meanwhile, these investments produced P27.16 billion in income by June, yielding an annualized return of 4.53 percent, excluding realized gains from equity securities sold.

SSS targets a reserve fund of P1.5 trillion by year-end, P1.75 trillion in 2027, and eventually P2 trillion by 2030. /pai