The state-run Government Service Insurance System said it is reviewing its planned $400-million foreign investment because of uncertainties in the international market.
“We are reviewing the strategy because it [market] is still volatile. But we believe the rock bottom has already been hit,” said GSIS president and general manager Winston Garcia.
“The experiences of fund managers make us pause and ponder [but] it is inevitable for us to go abroad because of the declining investment opportunities here in the Philippines,” he said.
“We’re planning to proceed with [investing the $400 million] but we want to clear the air first and to see who are the fund managers affected by this global crisis. It will not be prudent for us to make a selection right now on the basis of the rating standards—we have the benefit of hindsight,” Garcia said.
GSIS expects earnings this year to slip by as much as 20 percent due to volatile markets and low interest rates. Garcia said net income would likely fall to P40 billion this year from about P50 billion last year.
The GSIS head said the fund would adopt more stringent requirements in selecting managers for its $400-million fund overseas.
“We will have different investors for the $400 million. We have to be certain who to get,” said Garcia.
The state-run pension fund manager said it would remain an active player in the local capital market despite allotting a total of $1 billion overseas.
GSIS divested its shares in Manila Electric Co. last year, earning P12.5 billion. It has some P8 billion invested in local stocks.
Metropolitan Bank and Trust Co., Bank of the Philippine Islands and Banco de Oro Universal Bank have been managing the pension fund’s P6 billion worth of investible funds since 2007.
GSIS launched its $1-billion global investment program at the start of last year and appointed ING Investment Management and Credit Agricole Asset Management (Singapore) Ltd. as global fund managers for the first tranche of $600 million. It named Citibank NA as the global custodian.
GSIS said it earned P43 billion in the first 11 months of 2008 while consolidated revenues reached P81.9 billion.
The pension fund, meanwhile, is seeking approval of the Bangko Sentral to buy $400 million from the spot market to fund its overseas investments invest abroad and take advantage of opportunities in the global market.
GSIS sought the approval of the central bank to buy $600 million in May last year for its initial foreign investments. –Eileen A. Mencias, Lawrence Agcaoili, Manila Standard Today
September 18 –
International Equal Pay Day
“Increase wages now,
more than other cost items.
For widespread, practical equality!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the recommendations of the 2021 ILO Commission of Inquiry
against serious violations of protocols of
Forced Labour and Freedom of Association.
Accept the National Unity Government (NUG)
of Myanmar. Reject Military!
#WearMask #WashHands
#Report Corruption #SearchPosts #TakePicturesVideos
October –
Monthly Observances:
Industry and Commerce Safety Month
National Statistics Month
Local Government Month
Consumer Welfare Month
Cooperative Month
National Quality and Productivity Improvement Month
National Health and Wellness Tourism Month
National Indigenous Peoples Month
Weekly Observances:
Week 1: Elderly Filipino Week
Week 2: National Health Education Week
Local Government Week
National Mental Health Week
October 17-23:
National Week for Overcoming Extreme Poverty
October 18 – 24:
United Nations Week
Last Week:
Nurses’ Week
Consumers’ Protection Week
Week of the 4th Sunday:
Barrio Farmers’ Week
Daily Observances:
First Monday (Oct 4): Universal Children’s Day i
n the Philippines
Oct 5: National Teachers’ Day
Oct 10: Local Government Day
Third Thursday (Oct 14): Conflict Resolution Day
Oct 21: Tenants’ Emancipation day
Oct 24: United Nations Day
Oct 29: National Indigenous People’s Thanksgiving Day
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