Inflation for the period averaged 5.65%, a great improvement over the previous year’s 7.27% record.

The peso continued to grow stronger ending at P47.5 against the USD as of fiscal year end, a marked improvement over the P51.79 record the previous year.

Fiscal Year 06-07 was indeed a very good year for PERAA as shown in our brief report below.

THE YEAR IN REVIEW

Highlights of Operation

Assets as of fiscal year end stood at P4.8 billion, reflecting a 15% increase from the past year’s P4.2 billion record.

The Members’ Fund which comprises 83% of Total Assets rose from P3.6 billion to P4.0 billion as of fiscal year end, recording an 11% increase over the past year. Meanwhile Annuity Pension Reserve declined by 1% during the same period.

Net Revenues went up to P989.9 million recording a 23% increase over the previous year’s P804 million level. Such increase was brought about by a very good investment performance. Net investment earnings grew by an all-time high of 48%. The fund earned P646.73 million for the fiscal year. On the other hand, the P343 million contributions of members reflected a 6% decline from the previous year.

For the year, the Board declared 13.3 % as rate of return on investment (ROI), net of tax and expenses exceeding the benchmark 91-day T-Bill rate of 5.09% and the ROI the previous year. If you remember, we had a10.8% ROI the previous year.

The Investment Portfolio, shown next page, summarizes the distribution of the investment fund as follows: 29% was placed in Peso Gov’t. Debt Securities, 23% in Equity, 21% in Peso Corporate Debt Securities, 13% in Foreign Gov’t Debt Securities, 3% in Foreign Corporate Debt Securities, 2% in Real Estate and 9% in Others. Total portfolio for the year stood at P4.68 billion. We are also showing the portfolio last year for comparative purposes.

For the fiscal year in review, we released P330.98 million as total Benefit Payments. The amount is 9% below the benefits released last year. The bulk or 63% of the benefit payments went to retirement covering pension, lump sum payment and dividends. Repurchase payments totaled P105.6 million and constituted 32% of benefits paid out. The remaining 5% went to Death and Separation-from-Service benefits. There were 2,565 claims during the year.

Total Multi-Purpose Loans for the fiscal year decreased by 7% i.e. from P59.53 to P55.33 million. This was due to a decline in borrowers from 3,192 to 2,900 members.

Eleven schools successfully enrolled their employees in PERAA. As of April 30, 2007, total Participating Institutions reached 1,800 while individual members were recorded at 75,386.

We welcome the following schools confirmed by the PERAA Board of Trustees as new Participating Institutions of Fiscal Year ending April 30, 2007:

Ace Learning Center, Palompon, Leyte; Assumption College of Nabunturan, Compostela Valley; Ateneo De Zamboanga Multi-Purpose Cooperative, Zamboanga City; Jose Maria College, Davao City; Los Baños Faith Christian School Inc., Los Baños, Laguna; Noah’s Ark Christian School, Inc. Parañaque City; The Sisters of Mary Boys’ Private School, Inc., Brgy. Adlas, Silang,Cavite; The Sisters of Mary Girls’ Private School, Inc., Biga, Silang,Cavite; The Superior of the Mercedarian Missionaries of Berriz, Inc. (Our Lady of Mercy Kindergarten), Zamboanga City; Unification Theological Seminary-Asia, Inc. Antipolo City; St. Albert the Great School, Dagupan City.

Acknowledgment

At this point, we would like to acknowledge, with thanks, those who have actively participated or were involved in our search for The Outstanding PERAA Members (TOPM). Congratulations also to the winners in the TOPM search, the Outstanding Participating Institutions and the other honorary awardees – Millionaires, Multi-Millionaires, Mega Circle, and Prestige Class.

With the changing of the guards, as the emblem of leadership is passed on from the past president to me, let me affirm the deep appreciation of the PERAA Board and the general membership to Dr. Oscar Josef who served PERAA for 33 years, 18 as president. Through his dedicated service and active concern for the welfare of the members, he has helped steer PERAA through the past three decades to where it is today.

Other Management Concerns

We will certainly continue the programs that have helped the general membership all these years and will consider new ones to keep attuned with the times.

For starters, we will be implementing a reorganization at the beginning of the fiscal year after a thorough study of the work flow and job functions of each employee. This is a complementary move with our ongoing comprehensive computerization program to effect an updated records management system and enhance our basic services to the members, not to mention internal controls.

Outlook

Our focus this coming fiscal year will be the completion of our computerization program. The PERAA workforce is actually excited to see its implementation because it will mean speed and ease in the exercise of their official functions.

In addition, we wish to relay to all our valued Participating Institutions that although we are focused on marketing PERAA to non-member schools, part of our priorities is to visit Participating Institutions in the area whenever we call on non-member schools.

We look forward to a sustained performance in terms of fund earnings. Despite the unfavorable outlook on the economy by some sectors in society, we remain bullish on the prospects of PERAA in the years to come. And we thank those who continue to believe and trust in the PERAA Board’s capability to make PERAA a continuing and a successful retirement fund provider.

Realizing fully well that each of us is a stakeholder in PERAA, a dynamic institution in progress, let us take one step at a time. Together, with the Board of Trustees, the PERAA workforce and each participant in this Association, there is no other way for us but to move forward. Let that be a motivation and an affirmation.

(SGD.) BERNADETTE M. NEPOMUCENO
President

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