By The Nation
The Social Security Office (SSO) said it is confident that this year’s return on investment will exceed that of last year, now that it has reported a first-half result of Bt28 billion or 4.7 per cent growth. It’s target for this year is Bt58 billion.
SSO secretary-general Ananchai Uthaipattanacheep revealed that returns on investments this year is better due to improved investment conditions.
“Last year, the [Stock Exchange of Thailand] SET Index was plummeting due to high fluctuation in the market,” he said. “In the first half of 2019, however, we have already reached 4.7 per cent growth mark, and by the end of the year we should earn around Bt58 billion with no problems.”
Ananchai further explained that SSO’s investment portfolio currently stands at Bt2.2 trillion thanks to its strategy that focused on gold trade earlier this year. “As the price of gold has been on the rise, it’s a good time for us to sell our gold shares for big profits and buy shares of companies that follow good environmental, social and governance practices to strengthen our portfolio.”
He also added that currently SSO’s investment ratio is as follows: Risk-weighted assets at 21 o 22 per cent and highly secured assets at 78 per cent.
“SSO will continue using this ratio as it is still producing satisfying results,” he said. “However, returns from fixed income securities is still rather low. Therefore, we may have to look for alternatives in low-risk assets that give better returns on investment after referring to indicators provided by the Thai Bond Market Association.”