Security Bank unit to manage P2 billion worth of SSS funds

MANILA, Philippines — State-run pension fund manager Social Security System (SSS) has tapped a unit of Security Bank Corp. to manage P2 billion worth of funds over the next three years.

This after Security Bank’s Trust and Asset Management Group (TAMG) topped a three-month rigorous bidding process, participated in by various local fund managers in the Philippines.

The fund to be managed by the listed bank’s Trust group consists of P1.5 billion balanced fund mandate and P1 billion pure fixed income fund mandate.

Carmela Lim, division head of sales and client acquisition at Security Bank TAMG, said the mandate reflects the confidence and trust that SSS has on Security Bank.

“Being able to manage funds for one of the largest government institutions in the country is an opportunity we are very proud of. Through this, we can extend our promise of better banking not only to SSS but also to its members, through prudent fund management,” Lim said.

Security Bank’s TAMG offers a wide array of investment and trust services for its clients, including unit investment trust funds (UITF), retirement funds, investment management accounts, escrow agency accounts, corporate and pre-need trusts.

SSS is the country’s largest pension fund institution that addresses the basic needs of the private sector workers and their families by protecting them from the hazards of disability, sickness, old age, and death by providing for other benefits in case of unemployment, maternity and work injury.

Since 2019, it has tapped reputable partners in the fund management industry to enhance the investment portfolio return and consequently extend the actuarial life of the SSS Fund.

Robust core businesses and lower provision for bad debts pushed the net income of Security Bank Corp. to a record P10.6 billion last year, 53 percent higher than the P6.9 billion recorded in 2021.

Security Bank president and CEO Sanjiv Vohra hopes to sustain the bank’s strong performance this year with the further recovery of the Philippines from the impact of the global health pandemic.

“We are encouraged by the underlying growth of the economy as it reopens and rebuilds. Our strong performance for 2022 reflects the fact that Security Bank is fully engaged to support our retail, wholesale, and SME clients. We will sustain that intensity for 2023 as we help clients navigate the current inflationary environment and geopolitical uncertainties,” Vohra said.