SSS outperforms investment benchmarks, earns over P28-B in 2015

By: Aram Odumerb via RH NewsTV

The Social Security System (SSS) said Friday it attained a full-year investment income of P28.65 billion last year while its return on investments (ROI) reached 6.9 percent, outpacing key market indicators such as the 10-year Treasury bond and 364-day T-bill rates which averaged 4.0 percent and 2.1 percent, respectively.

SSS Executive Vice President for Investments Sector Rizaldy T. Capulong noted that the agency’s ROI last year also remained ahead of national economic indicators, particularly the 5.8 percent growth in gross domestic product (GDP) and 1.4 percent inflation rate for 2015.
“Our investment activities are guided by SSS charter and adhere to the principles of safety, good yield and liquidity. SSS performance under present management has consistently outdone major investment benchmarks, and we continue to do our best amid the prevailing market conditions,” Capulong said.

From 2011 to 2015, the SSS annual ROI averaged 9.1 percent, outperforming the five-year annual averages of 5.9 percent for the GDP growth, 4.8 percent for the 10-year T-bond, 3.3 percent for the inflation rate, and 1.8 percent for the 364-day T-bill.

Government securities, the largest contributor to SSS investment earnings at 38.6 percent, registered a 7.1 percent ROI and brought in P11.05 billion last year, improving on the P10.98 billion earned in 2014. Combined income from government securities and equities make up two-thirds or P19.18 billion of the entire SSS investment earnings for 2015.

“Equity investments have been generating good returns for the funds of our members, earningP8.13 billion last year while the ROI reached 8.2 percent despite the 3.9 percent PSEi (Philippine Stock Exchange Index) decline in 2015. Equities accounted for 28.4 percent of our total investment income last year, and remain a major component in our investment strategies,” Capulong said. (JCA)