BPOPF closes in on P130bn target despite rising payouts
Lewanika Timothy | Monday August 17, 2026 06:00
Assets grew by 10.2% from P116.38 billion, leaving BPOPF about P1.7 billion short of its strategic target, which it expects to reach by March 2027.
The growth came against a 39% increase in benefits paid during the year, driven by higher retirements, death benefits, and transfers out of the fund.
Providing an update on the fund's performance recently, BPOPF chief executive officer, Kwenantle Otukile, said the asset growth was underpinned by investment performance and continued contributions from members.
She said the fund had maintained a diversified asset allocation strategy, demonstrating disciplined investment management whilst pursuing sustainable returns for members and making steady progress towards its strategic growth target.
She said the fund was on track to achieve its strategic target of P130 billion in assets under management by March 2027, and officials remained confident that, together with the board, service providers and partners, the objective would be attained.
Investment returns strengthened significantly during the year, with the active and deferred portfolios recording an interest rate of 11.10% in 2026, compared with 6.4 percent in 2025.
BPOPF is also approaching another important deadline as pension funds move towards finalisation of the revised Pension Fund Investment Rules 2 (PFR2), which require a progressively larger proportion of pension assets to be invested domestically.
The fund had reached 46.21% domestic investment by March 2026 against a 47% target, putting it close to the December compliance deadline.
“As of March 2026, the fund had reached 46.21% against a target of 47% and is on course to achieve full compliance by December 2026,” she said.
PFR2 was introduced by the Non-Bank Financial Institutions Regulatory Authority as part of efforts to increase domestic investment by pension funds, whilst ensuring that portfolios remain appropriately diversified.
The fund's funding level stood at about 103%, indicating that its assets continued to provide coverage above its liabilities.
Whilst investment management costs increased slightly during the year as investment activities expanded, BPOPF said its asset management cost ratio remained below one percent.
The 2026–2027 financial year marks the final year of BPOPF’s current five-year strategic plan, with preparations already underway for the next strategic roadmap.