The state-run Social Security System (SSS) said it invested P3 billion of its investment reserve fund (IRF) in three domestic mutual funds in the Philippines, the first time in the history of the pension fund.

SSS President and Chief Executive Officer Emmanuel F. Dooc said the pension fund invested P1 billion each in PhilEquity Fund Inc as managed by Philequity Management, Inc.; Sun Life of Canada Prosperity Balanced Fund, Inc. as managed by Sunlife Asset Management Company, Inc.; and Philippine Stock Index Fund Corp. as managed by BPI Investment Management, Inc starting last June 27.

“This is the first time in 61 years that the pension fund invested in mutual funds. The deployment of P3 billion in the domestic mutual funds, although modest in size relative to SSS’ size of about P500 billion is a significant first step in partnering with top local managers and has a lot of potential benefits,” Dooc said.

“This is a big step for the SSS. This is a part of broadening its market-intelligence sources, discovering best practices and learning new investing styles that may be highly suitable to SSS. The competition brought about by performance-focused fund managers should result in improved total returns of the SSS funds,” he added.

Dooc added that the three mutual funds were chosen through a competitive and transparent evaluation process. The deployment of P3 billion was done in tranches from June 27 to July 4.