SSS investment program to continue amid controversy

State-owned Social Security System (SSS) has tapped the Goldman Sachs Group Inc., a global investment bank, to help the company improve its investment program as it plans more “brick and mortar investments” and eyes equities abroad.

In an interview, SSS chairman Amado Valdez said it’s business as usual for the institution, particularly with its investment programs even with the ongoing investigation of three officials accused of using SSS stockbrokers for their personal benefit.

“There will be no slowdown in our stock market investment. There is already a system being followed,” he said.

Valdez said he has already asked Goldman Sachs for assistance to provide SSS with case studies on successful investment programs of similar institutions.

“We’re talking to them to do case studies on successful investments of similar institutions,” Valdez said.

SSS is also looking at increasing the allowable investible funds abroad to more than 7.5 percent of total investible funds given its potential for higher returns. The institution is already in talks with fund managers to handle possible transactions abroad.

If it proceeds, this is similar to the route taken by the Government Service Insurance System (GSIS) which has a balance of domestic and overseas investments.

Valdez said the overall plan is to invest not just in “finance investments” but in infrastructure and brick-and-mortar development to put “people’s capital to good use.”

For infrastructure, SSS is looking at joining the development of the Davao International Airport and the Cagayan International Airport.

Valdez said if the project cost is P5 billion, for example, SSS will account for the 30 percent and if the projects earn 20 percent, SSS will get a share.

He said the move is part of SSS’ efforts to shift to direct investments from purely finance investments.

Pure finance investments, Valdez said, do not translate to brick and mortar development.

On the ongoing investment and reassignments of executives involved in a stock market controversy, Valdez said this should not affect SSS’ investment programs.

SSS also reiterated that it has institutionalized procedures to address administrative complaints. Such mechanisms ensure all parties are given due process.

SSS guarantees its members that the Investment Reserve Fund, which came from members’ contributions and investment income, is intact, well-protected, and professionally managed. The management would also like to assure its members that no SSS fund was used or compromised in the issue.

The institution is looking into alleged profiteering by three SSS officers – executive vice president for investments Rizaldy Capulong, equities investment division chief Reginald Candelaria, and equities product development head Ernesto Francisco Jr.