SSS trains sights on small caps

Gerard S. dela Peña
BusinessWorld Online

State pension fund Social Security System (SSS) has set aside P2 billion this year for investments in listed firms with relatively smaller capitalization in order to maximize gains from its investments.

This was after it made similar investments in 2009, SSS President and Chief Executive Officer Romulo L. Neri told reporters last week.

“What we are working on is we are trying to buy more into small caps.

They have good growth rates and we want to take advantage of that,” he said.

He did not mention the names of the firms the state pension fund is currently looking into. He also did not disclose SSS’s budget for investments in small caps last year.

SSS last year agreed to buy up to 10% of listed oil retailer Phoenix Petroleum Philippines, Inc. It has so far bought 2.83% of the company, or roughly 7.5 million common shares at P5.60 apiece for a total of P42 million, Phoenix Petroleum said in a disclosure to the Philippine Stock Exchange in November.

Mr. Neri also said SSS bought stakes in listed money transfer firm I-Remit, Inc. and canned tuna exporter Alliance Tuna International, Inc. He did not say how much SSS poured into these companies. Read more...