Investment Plans Formed to Expand Social Security Fund

Permanent Secretary of Labour M.L. Puntrik Smiti, the Social Security Office’s Secretariat Mr. Suradech Waleeittikul and committee visited New York from 7 to 13 August 2017. The agenda included following up investment progress and study opportunities in expanding investment from the social security fund. On 9 August 2017, the Permanent Secretary and committee joined a conference with Black Rock Asset Management which currently manages investments. The company presented information for consideration in expanding investments which included investment methodology for ETFs, controlling investments, hedging exchange rate risks and investment in real estate.

On 10 August 2017, the Permanent Secretary of Labour and committee met with JP Morgan which is the keeper of assets invested in by the social security fund. JP Morgan presented global investment trends which indicated foreign investments and other forms of investment to spread risk. The company shared progress on investment of other countries’ social security funds which include communication with members to create acceptance in new investment approaches and the focus on old age pension plans that define benefits. They also advised methods on expanding current investments. On the same day, the Permanent Secretary and committee studied the New York State Common Retirement Fund, which differs from other states in the U.S. which have their own schemes. The retirement fund in New York provides coverage to all civil servants by collecting contributions from employers and employees. The office also has pre-retirement planning/advisory services to ensure retirees have sufficient funds for their future, which is also publicized through different forms of media for the acknowledgement of all.

On 11 August 2017, the Permanent Secretary and committee met with Goldman Sachs, a leading large-sized investment bank. The company presented smart beta investment which uses clear rules of investment, but using securities that can yield higher returns than the market. Goldman Sachs also advised trade transaction methods for the Social Security Office to expand overseas investment. Overall, the visit would help future foreign investment expansion plans of the social security fund as all relevant institutions are reliable for investment management and preservation, in accordance with plans and framework presented by the subcommittee on investment and risks and approved by the committee.

Source: Ministry of Labour

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