SSO to boost holdings in risky assets

The Social Security Office (SSO), which runs the country’s Social Security Fund (SSF), will raise its investment in risky assets in its portfolio in a bid to seek higher returns.

Win Phromphaet, the SSO’s head of investment, said the SSF has an average return of 7% on total investment worth 1.04 trillion baht.

Of that, 80% is invested in highly secure assets such as bonds and the rest in risky assets such as equities, alternative investments such as property funds and investment abroad.

Mr Win said the office’s five-year plan is to raise risky assets to 36% from 20%. The risky assets include equities, which will remain at 12%, as it could see high returns in the short run.

The ceiling of 12% for equities is appropriate, as returns from listed companies will continue to grow by 10-15% annually over the next five years.

Also,in the next five year, the SSO targets allocating 10% to alternative investments such as property funds, commodity and infrastructure funds and international investments.

‘‘This will enable the office to increase returns by 10 billion baht a year,’’ Mr Win said.

Jirasuk Sugandhajiti, the SSO’s secretary-general, said the office will also adjust its policy by assigning more asset management companies to manage the SSF, as they are keen on making higher returns on investments.

Previously, 12 billion baht out of total assets of 1.04 trillion had been managed by two asset management companies — Thanachart and Kasikorn Group, he said.

The SSO yesterday signed contracts with Kasikorn Asset Management, Thanachart Asset Management, SCB Asset Management, MFC Asset Management and Krung Thai Asset Management to handle investments worth 45 billion baht.

Each company will manage assets of 9 billion, with contracts running until 2016.