MANILA, Philippines – The Government Service Insurance System (GSIS) has put on hold its plan to invest the $400 million remaining under its $1-billion Global Investment Program (GIP) in the wake of the global financial turmoil.
“Definitely not this year,” GSIS senior vice president for asset management group Cecil Feleo said yesterday.
The agency had planned to put the $400 million in fixed income securities but because of the global financial crisis, GSIS had to shelve the project, she added.
Other officials said the agency will wait for better market conditions before it pushes through with the $400-million investment program.
In 2007, GSIS launched its GIP, a program aimed at increasing the agency’s earnings. It is consistent with the good investment practices of public pension funds like the California Public Employees’ Retirement System or CalPERS and the California State Teachers’ Retirement System or CalSTRS, as well as the direction being taken by Asian neighbors such as the National Social Security Fund of China, the Government Pension Fund of Thailand and the Employees’ Provident Fund of Malaysia.
It has a requirement of an annual eight-percent floor on return on investments (net of fees) and a ceiling of seven percent on the portfolio volatility.
For the $600 million, GSIS had obtained the services of fund managers ING Investment Management and Credit Agricole Asset Management (Singapore) Ltd. The two will manage funds starting at $300 million each.
The fund managers were given the flexibility to determine their investment strategy, both in the asset allocation and the instrument selection.
The $1-billion budget for the GIP is equivalent to approximately 12 percent of the total loans and investment portfolio of GSIS.
The GSIS said it decided to invest abroad so that it can meet the future claims and benefits of its members.
As of end-2008, GSIS has increased its total assets to P480 billion from P441 billion the previous year despite the challenging environment.
Earnings from investments and hefty gains from the sale of its stake in Manila Electric Co. (Meralco) in October last year allowed the state pension fund to increase its assets. –Iris C. Gonzales, Philippine Star
July 2025
Nutrition Month
“Give us much more than P50 increase
for proper nutrition!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the 2021 ILO Commission of Inquiry recommendations
against serious violations of
Forced Labour and Freedom of Association protocols.
Accept National Unity Government (NUG)
of Myanmar. Reject Military!
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July
3 July – International Day of Cooperatives
3 July – International Plastic Bag Free Day
5 July – World Youth Skills Day
7 July – Global Forgiveness Day
11 July – World Population Day
17 July – World Day for International Justice
28 July – World Nature Conservation Day
30 July – World Day against Trafficking in Persons
Monthly Observances:
Schools Safety Month
Nutrition Month
National Disaster Consciousness Month
Weekly Observances:
Week 2: Cultural Communities Week
Micro, Small, and Medium Enterprise
Development Week
Week 3: National Science and
Technology Week
National Disability Prevention and
Rehabilitation Week
July 1-7:
National Culture Consciousness Week
July 13-19:
Philippines Business Week
Week ending last Saturday of July:
Arbor Week
Daily Observances:
First Saturday of July:
International Cooperative Day
in the Philippines
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