SSS still looking for two fund managers

STATE-RUN pension fund Social Security System is still looking for two fund managers that will each manage P1 billion in portfolio.

The SSS over the weekend published for the third time a call for submission of eligibility documents for the outsourcing of fund management to two qualified local fund managers.

The pension fund said the two fund managers would be responsible for a total portfolio of P2 billion, which would be a mix of equity and fixed income instruments.

Each fund manager will give a management fee of P2.5 million, equivalent to 0.25 percent of the fund a year.

Both fund managers will have two-year contracts with the SSS.

The deadline for submission of eligibility requirements among interested consultants is Sept. 2.

The SSS’ bids and awards committee will then come up a shortlist of four prospective bidders that will be allowed to submit their bids, based on a rating system and criteria assessing the companies’ assets under management, experience, as well as investment performance.

The SSS first sought bidders for a fund management contract last year, during which only one firm was deemed eligible, information obtained by the Inquirer showed.

Following the second advertisement published in July, four fund managers submitted eligibility requirements, but were later found ineligible for lacking tax clearance.

This is the first time that the SSS will tap fund managers, in line with plans to increase its investments in domestic capital markets.