Despite the coronavirus disease 2019 (Covid-19), the Social Security System (SSS) earned a full-year investment income of P32.47 billion in 2020 while its return on investments (ROI) attained 5.89 percent.The ROI both outperformed 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 Covid-19 pandemic that shook the Philippine stock market. However, the previous year’s investment income was considerably lower than the P40.97 billion recorded in 2019.
“The nationwide community quarantine measures drastically affected the stock market since March 2020. Despite this, SSS investments continued to perform well and provided decent returns last year,” Ignacio added.
Ignacio pointed out that 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.
“SSS investment performance has consistently outperformed major investment benchmarks. Whatever are the prevailing market conditions, we continue to perform well in our investment activities. As guided by our charter, we adhere to the principles of safety, good yield, and liquidity,” Ignacio said.
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 that government securities topped as the largest contributor to investment income at 42 percent, registered a 5.89-percent ROI, and brought in P13.71 billion last year, slightly went down from the P13.84 billion 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 P8.97 billion in 2019 to P6.71 billion in 2020 and registered a 6.82-percent ROI last year. SOVEREIGNPH