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May 2024
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Philippines’ Social Security System appoints Metrobank Trust for 1.5 billion peso fund mandate

The mandate started in February and will be for a three-year period
By Goh Thean Eu   
April 16, 2024

The Philippines’ Social Security System (SSS) has appointed Metrobank Trust to manage a 1.5 billion peso (US$26.38 million) balanced fund mandate for the pension fund.

The appointment is for three years and began in February, Metropolitan Bank and Trust Co, the parent of Metrobank Trust, says in a statement on April 13.

Metrobank Trust will be responsible for managing and growing the balanced fund by investing in various equities and fixed income assets.

“We are privileged to receive this mandate from one of the country’s largest pension funds as it signifies a vote of confidence in Metrobank’s leadership, expertise, and exceptional service standards in investment management,” according to Jikee Reyes, head of trust banking group at Metropolitan Bank and Trust.

The SSS, which manages retirement savings of private sector employees and the self-employed, said last week that it plans to hire up to six external fund managers this year in order to diversify its portfolio.

The pension fund has around 800 billion pesos of total investable assets currently, earns more than 6% a year, and is confident with its internal fund management team, according to Ernesto Francisco Jr, its vice president for fund management.

“But the hiring of outsourced fund managers is a strategy to diversify our investments. Two things can be achieved: better returns and we are able to tap their technology and brains,” he was quoted as saying in a Malaya Business Insights report on April 8.