The Social Security System (SSS) is diversifying its investment portfolio by ramping up its involvement in real estate investment trusts (REITs) this year.
Rolando Ledesma Macasaet, SSS president and chief executive Officer, said they are optimistic about the potential for enhanced returns as the pension fund commits P6 billion to various REITs in the Philippines.
Macasaet's positive outlook is supported by acquiring over 75 percent of the P6 billion REIT investment this year, yielding eight percent.
He said this move is anticipated to bolster the SSS investment portfolio and generate a favorable outlook among stakeholders.
In line with this initiative, Ernesto D. Francisco, Jr., acting head of SSS Investments Sector, said the fund’s current five percent equity fund allocation to REITs and expressed a keen interest in seizing additional investment opportunities in the sector.
Francisco said the advantages of REITs for pension funds like SSS include the mandated distribution of 90 percent of lease income and their role in stimulating economic development through reinvestment.
"Looking ahead, we envision a promising future for the Philippine REIT sector, which could potentially become a major contributor to the capital market,” Francisco said.