SSS pours in P3B to equity funds of Wilson Sy, Sunlife, BPI
The state-run Social Security System (SSS) on Thursday disclosed that it invested PHP3 billion of its investment reserve fund (IRF) in three domestic mutual funds in the Philippines, the first time in the history of the pension fund.
SSS President and Chief Executive Officer Emmanuel F. Dooc said the pension fund invested P1 billion each in PhilEquity Fund Inc., as managed by Philequity Management, Inc. of investment guru Wilson ; Sun Life of Canada Prosperity Balanced Fund, Inc. as managed by Sunlife Asset Management Company, Inc.; and Philippine Stock Index Fund Corp., as managed by BPI Investment Management, Inc. starting last June 27.
“This is the first time in 61 years that the pension fund invested in mutual funds. The deployment of P3 billion in the domestic mutual funds, although modest in size relative to SSS’ size of about P500 billion is a significant first step in partnering with top local managers and has a lot of potential benefits,” Dooc said.
“This is a big step for the SSS. This is a part of broadening its market-intelligence sources, discovering best practices and learning new investing styles that may be highly suitable to SSS. The competition brought about by performance-focused fund managers should result in improved total returns of the SSS funds,” he added.
Dooc added that the three mutual funds were chosen through a competitive and transparent evaluation process. The deployment of P3 billion was done in tranches from June 27 to July 4.
The Social Security Commission green lighted the accreditation of the three mutual fund companies on July 12, 2017 while the approval of the release of the PHP3-billion fund in six installments was on June 20, 2018.
“SSS’ investment in domestic mutual funds was made with due diligence and prudence in line with the basic principles of safety, good yield and liquidity,” Dooc said.