The Social Security System likely registered a flat growth in net revenues in 2013 as uncertainties in the financial markets resulted in moderate gains in stocks and other portfolio investments.
SSS President Emilio de Quiros Jr. said preliminary data indicated that the state-run pension fund manager posted about P36 billion in net revenues last year—roughly the same as that reported in 2012.
“We are still waiting for the final figures for 2013, but latest data showed that we posted just about the same [net revenue] last year compared with the previous year,” De Quiros told reporters Friday.
He said that, as of November, net revenue of the SSS stood at P35 billion.
With November’s figure, the SSS already exceeded its revenue target of P30 billion for the whole of 2013.
De Quiros said the SSS deliberately set a conservative target given expectations that financial market volatilities could lead to less-than-sharp gains in investment income.
The SSS has about P400 billion in assets, De Quiros reported. Of the amount, anywhere between P320 billion and P330 billion are accounted for by its liquid assets, which are composed of investments in stocks and fixed-income securities.
Of its liquid assets, a third is accounted for by investments in stocks.
SSS holds various stocks in a wide range of industries, led by financial intermediation and consumer.
In 2013, the Philippine Stock Exchange Index (PSEi) was rocked by volatility, breaching the 7,000 mark early in the year to become one of the fastest growing indices in the world, but closing at only 5,889.83 on the last trading day of the year.
PSEi’s latest year-end value was only slightly higher than its 2012 close of 5,812.73.
De Quiros said the SSS generated P20 billion in investment income from January to November—the same as that generated in 2012.
For 2014, De Quiros said, the pension fund has set a net revenue goal of P30 billion.