November 2021
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November 2021
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Macau’s SSF investment income and return decline in 2020

Macau SSF
By Hui Ching-hoo   
July 19, 2021

Macau’s Social Security Fund’s (SSF), which provides fundamental social protection for local residents, reported a 9.38% decline in investment income for 2020 and a lower return that it described as “reasonable” in light of market volatility amid the coronavirus pandemic.

The fund’s investment income fell to 6.09 billion patacas (US$761 million) from 6.72 billion patacas in 2019, the SSF says in its annual report published on July 15.

The fund had 92.63 billion patacas of investable assets as of December 2020, up from 86.3 billion patacas a year ago.

Just over half, or 50.5%, of the assets was in bank deposits, and the remaining 49.5% in an investment portfolio comprising a mix of global stocks and bonds.

Income from the investment portfolio was 47.03 billion patacas in 2020, down from 55.05 billion patacas in 2019, and the return fell to 11.5% from 15.66%.

According to the SSF, the portfolio could maintain “a reasonable rate of return last year although [the] global market was highly volatile”, with the pandemic and stimulus packages launched by global governments to combat the crisis.

Return from the fund’s bank deposits increased to 3.12% from 2.84%.

The average return for its overall investible assets dropped to 7.12% from 8.58% in 2019.

“The SSF marked its 30th anniversary in 2020. The fund will continue to enhance the city’s two-tier social security system,” SSF President Iong Kong Lo says in the report.

The two-tier system refers to the social protection provided by the SSF and the Central Provident Fund, a non-mandatory defined-contribution supplementary retirement fund introduced in 2018.