The Social Security System earned a full-year investment income of P32.47 billion in 2020 while its return on investments (ROI) attained 5.89 percent, outperforming key market indicators such as the 10-year Treasury bond and 364-day T-bill rates, which averaged 3.43 percent and 2.42 percent, respectively.
SSS President and Chief Executive Officer Aurora Ignacio said that the SSS investment portfolio still provided decent earnings last year despite the pandemic that shook the Philippine stock market. However, the previous year’s investment income was conside-rably lower than the P40.97B recorded in 2019.
Ignacio said the pension fund’s ROI in 2020 remained ahead of national economic indicators, particularly the -9.50 percent growth in the gross domestic product (GDP) and 2.60 percent average inflation rate for the same year.
From 2011 to 2020, the SSS annual ROI averaged 8.07 percent, outperforming the ten-year annual averages of 4.72 percent for the GDP growth, 4.82 percent for the 10-year T-bond, 2.92 percent for the inflation rate, and 2.63 percent for the 364-day T-bill.
SSS Executive Vice President for Investments Sector Rizaldy Capulong said government securities topped as the largest contributor to investment income at 42 percent, registered a 5.89 percent ROI, and brought in P13.71B last year, slightly went down from the P13.84B generated in 2019.
Member loans came in second, which account for 21 percent of the total investment income. Income from member loans also dropped from P8.97B in 2019 to P6.71B in 2020 and registered a 6.82 percent ROI last year.
Capulong said the combined income from government securities and member loans comprise more than half of the SSS investment earnings last year with P20.42B.
The P589B SSS investment portfolio is broken down to government securities (41.86 percent), member loans (19.09 percent), equities (16.73 percent), properties (10.06 percent), corporate notes and bonds (5.83 percent), bank deposits (2.80 percent), external funds (2.17 percent), and housing and development loans (1.46 percent). – Press release
April 20, 2024
