"Our expectation is that the earnings from investments will be significantly smaller in 2002 compared to 2001," Luisito Sioson, special assistant to SSS president and chief executive officer Corazon de la Paz, said.
Investment income reached P7.57 billion in 2001, compared to total benefits amounting to a whopping P17 billion.
Sioson said equity earnings so far have been insignificant to almost nil as the Philippine equities market has been in the doldrums. Investments in some major securities and blue chips are well below purchase price resulting in poor dividend earnings.
For instance, the SSS has 781 million shares in Equitable PCI Bank which it bought at P96 per share or a total of P7.5 billion. It closed last Thursday at P28.50 which brings its present value at a mere P2.22 billion or a loss of roughly P5.3 billion.
SSS also holds 329.9 million shares of the controversial Belle Resources which it bought at P2.26 per share for a total investment of P744.6 million. Belle shares have been hovering at an average price of P0.45 per share in recent trading thereby giving it a market value of roughly P143.5 million or a loss of P596.1 million.
As of September last year, the investment portfolio of SSS consisted of P19.6 billion in government securities (GS), P41.3 billion in equities, P12.2 billion in development loans, P28.4 billion in members’ loans, P41.7 billion in housing loans, and P7.3 billion in real estate.
The system’s investment portfolio in 2001 went over P158 billion.