MANILA, Philippines – The Social Security System (SSS) plans to diversify some of its investments to expand its portfolio.
The pension fund agency said it is eyeing 3 local fund managers, and each will manage P1 billion ($22.28 million*) investible funds in a mix of equity and fixed income securities.
This is the first time that the agency will hire fund managers for its investments.
SSS’ investible funds total P370 billion ($8.25 billion).
Section 26-A of Republic Act No. 8282 or the Social Security Act of 1997 allows the appointment of external fund managers by the SSS.
The agency would like to take advantage of the investment skills of fund managers, SSS President and Chief Executive Officer Emilio De Quiros Jr. said early this year. “It will be small, we’ll start with a billion each, so that’s around P3 billion ($66.83 million). We’ll build that up eventually,” De Quiros said.
De Quiros said that it is important to hire fund managers to help them compare the investments’ performance with those managed in-house, as well as learn their strategies to grow the funds.
Those interested must be duly-licensed companies; with at least 5 years of fund management experience; and with investment performance published in national broadsheets, the SSS said.
The companies must also have assets under management of at least P10 billion ($222.79 million) in equities and about P25 billion ($556.98 million) in fixed income securities as of December 31, 2013.
The deadline for submission of eligibility documents to the SSS Head Office in Quezon City is on November 18.
“We’re going to choose the fund managers based on the amount of assets that they’re managing right now and based on their performance in the past,” De Quiros previously said.
De Quiros said that they are looking at evaluating them every two years. “The top two fund managers will be retained and the last one will be dropped,” De Quiros added.
The fund managers will only manage local investments, De Quiros said.
“Once we’ve gained experience on outsourcing to fund managers, then we can start looking beyond Philippine shores,” De Quiros said. – Rappler.com
($1 = P44.86)