State-run Social Security System said it plans to increase gradually its offshore investments exposure by 2.5 percent annually until it hits 20 percent by 2022.
SSS president and chief executive Emmanuel Dooc told reporters the plan was to increase the recent cap for overseas exposure from 7.5 percent of total investible fund to 20 percent.
“This is just a proposal. What we are proposing is to achieve what we have stated of making the pension fund as an economic tool for economic activity when it comes to foreign investments. But this is not yet approved,” Dooc said.
“We feel that there is greater and better opportunities to get better income. We are positioning ourselves because we realized it was unpalatable to relay on increase in contribution. So we also have to harness opportunity to derive higher gain from investments,” Dooc said.
He said aside from seeking higher yield in offshore investments, the fund manager would also push for legislative initiatives to help strengthen SSS in facing challenges.
Dooc earlier said the pension fund planned to increase members’ contribution rate to 17 percent from the current 11 percent.