GSIS says it’s still active in the local capital market

State-run pension fund manager Government Service Insurance System remains an active player in the local capital market despite allotting $1 billion for global investments.

“When the GSIS launched its global investment program, it does not mean that it has abandoned the Philippine capital market. In fact, we remain to be an active player in the local bourse, specifically in a number of blue chip stocks,” said lawyer Estrella Elamparo in a statement.

She said GSIS had tapped the services of Metropolitan Bank and Trust Co., Bank of the Philippine Islands and Banco De Oro Universal Bank in 2007 to manage P6 billion in net investible funds for a period of three years.

The three banks, she said, were GSIS’ local fund managers with a mandate of P2 billion each.

The pension fund manager has launched GIP at the start of last year and appointed ING Investment Management and Credit Agricole Asset Management (Singapore) Ltd. as global fund managers for $600 million worth of funds. It named Citibank NA as global custodian.

The GIP aims to diversify the loans and investments portfolio of GSIS and improve its overall risk profile by tapping investment opportunities abroad in the form of financial securities through the hiring of global fund managers and a global custodian.

“Right now, the GSIS portfolio is already fairly diversified per asset class. But these assets are all domestic and highly correlated with the performance of the local capital market,” she added.

Five months into the program, the program has posted a five percent growth in the total value of investments to P1.245 billion.

“Through the GIP, the GSIS hopes to expand its investment horizon and capitalize on the opportunities offered by other capital markets,” Elamparo said. –Lawrence Agcaoili, Manila Standard Today