SSS Plans to Diversify Investment Fund into Foreign Instruments
What happened
The Social Security System is seeking to diversify its portfolio by placing 5% of its Investment Reserve Fund in foreign instruments by the end of 2027, according to. The SSS President and Chief Executive Officer, Victor Alfonso A. Limlingan, also stated the fund aims to have about 1% invested offshore by year-end. The pension fund currently holds some US Treasuries, which were purchased to protect against peso depreciation,.
From bworldonline.com
Why it matters
The shift in investment strategy is intended to maximize returns and cushion the impact of the Philippines’ falling fertility rate and elevated inflationary pressures on contributions and the fund’s life,. The SSS is relying more heavily on investment returns as the contributor base changes,.
Market instability and higher demand for small produce are noted in the citrus sector involving Argentina and the Philippines.
From bworldonline.com
Who's involved
- Bangko Sentral ng PilipinasCentral bank of the Philippines, whose mandate relates to FX stability.
- Department of FinanceGovernment agency involved in national financial planning and state asset management.
- Arsenio BalisacanFilipino economist whose views relate to long-term economic stability and growth strategy.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Department of FinanceSpeculative
The Department of Finance could see national financial planning and state asset management impacted by SSS strategic shift in investment allocation.
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The entities involved
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Argentina
country in South America
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Philippines
archipelagic country in Southeast Asia