SSB Investment Fund

The Investment Fund of the Social Security Board (SSB) now stands at $342M, that's according to Investment Manager at the SSB Clarence Faulkner.

Speaking during the weekly luncheon of the Rotary Club of Tortola on Thursday, July 8, 2010 at the Moorings, Faulkner said they have been doing well in light of the financial crisis because of extensive due diligence.

The Investment Manager stated that three years ago just before the financial crisis hit the fund was valued at $301M and at the peak of the crisis it dropped to $277M.

Faulkner said they were then up to 325 Million and as of Wednesday July 7th the fund stood at $342M.

He said when the financial crisis hit, the board suffered unrealized losses but it did not suffer because of the fraud involving Bernard Madoff, Lehman Brothers and Allen Stanford.

Faulkner said due diligence is key in ensuring that when these things happen the citizens funds are protected.

He said the issue of service provider and restoring confidence in the financial system has been an issue plaguing on individuals' minds for quite sometime.

"I got a lot of questions in the past week on how do you know the right individual to assist you in what you are doing. I got to be honest sometimes its luck, due diligence and sometimes you have to go with a gut feeling. But one of the things that is important is to do some background checks on the individuals," Faulkner explained.

Faulkner said one of the things he has learnt from the financial crisis is that you just have to do extreme due diligence.

According to the Investment Manager they have the blue print for the Caribbean, pointing out that they have been asked to share their model with the international community.

He said one of the good elements in designing the system is that it is free from political interference.

"We don't have our deposits or reserves co-mingled with the government's Consolidated Fund, even though we are a creature of statue we are somewhat independent from government and what they do," Faulkner said.

He said they manage on a strict investment policy that was designed and they believe that the process works.

As part of the board's 30th year anniversary it hosted a symposium at the HLSCC Thursday evening on 'An In-depth look at the Board's Investment Process and Performance'.