In a move to optimize investment returns, the Social Security System (SSS) has selected the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP) as its new local fund managers for the next three years.
SSS president and CEO Rolando Macasaet disclosed that the LBP-Trust Banking Group (LBP-TBG) and DBP-Trust Banking Group (DBP-TBG) are entrusted with managing the P2 billion worth of investible funds specifically for pure fixed income, effective October 2023.
Each of the appointed fund managers, LBP-TBG and DBP-TBG, received P1 billion in investment funds, distributed in two tranches on October 13 and 17.
The mandate for these funds is to be managed within specified risk parameters over the next three years, with the aim of expanding the SSS investment portfolio and increasing earnings.
“We see that SSS will greatly benefit from tapping external fund managers to handle a portion of our investible funds. We can take advantage of their expertise to help grow the SSS funds and diversify the investment portfolio,” said Macasaet.
Earlier this year, SSS engaged Bank of the Philippine Islands Asset Management and Trust Corporation, as well as Security Bank Corporation-Trust and Asset Management, to manage P2 billion allocated for pure fixed income investments.