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
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For widespread, practical equality!”
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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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