SSS investment income seen to reach P4.8B

The Social Security System (SSS) is likely to exceed its investment income target by 20 percent this year as it cashes in on its long-term government bonds, a ranking official said.

SSS senior vice-president for investments Edgar B. Solilapsi said they expect to earn P4.8 billion from their investments this year.

"We bought our long-term government bonds back when they were giving good returns. This is why we have a good position," he explained.

For 2007, Solilapsi said depending on how the market moves, the state-run pension fund is looking at tripling its investment income.

"I think we can make P12 billion," he said

Solilapsi admitted that the fund has not been actively trading in the stock market this year, even as he observed that the market has been gaining momentum due to improvements in the country’s economic condition.

Because of the solid market performance, Solilapsi estimates that the fund now has an unrealized gain of P35 billion, implying that if SSS sells all its holdings in publicly-listed companies, it would have earned P35-billion outright.

SSS has stakes in blue chip companies such as food and beverage giant San Miguel Corp. and telecom leader Philippine Long Distance Telepone Co. (PLDT). The fund also has a 25- percent share in Equitable PCI Bank. However, SSS cannot sell its ownership in the bank because the matter is still subject to a Supreme Court case.

The pension fund likewise reported that it has exceeded its collection target for the year by P790 million due to its intensified collection campaign. The fund only targeted P52 billion in collection but was able to collect P52.79 billion.

"We are making sure that our collection exceeds benefits so that we will not dip in our reserve fund," SSS president Corazon S. dela Paz said in a separate interview.

In an attempt to further drive up collections, Dela Paz said they will partner with Shoemart Bayad Center so voluntary members can pay their premiums together with their other bills.

Dela Paz explained that they are looking for other ways to collect premiums because some people find lining up in banks inefficient and time consuming.