The Government Service Insurance System (GSIS) continues to boost its asset portfolio as it eyes various investments locally and abroad with maximized returns.
In an interview with ANC’s Market Edge on Wednesday, GSIS President and General Manager Wick Veloso said they try to invest the State pension fund’s money in fixed income, loans, equities, properties and global infrastructure, among others.
Veloso recently signed an agreement with its New York-based global infrastructure partners worth USD300 million or over PHP16 billion in infrastructure projects.
“We constantly engage ourselves. There is this fund that we are able to review and during the review, these were manned by ex-World Bank president and ex-IMF (International Monetary Fund) president. We are familiar with investment in infrastructure in various countries globally even in the United States,” he said.
Veloso added that “it is our duty to be able to find these kind of investments because we cannot just continue to focus locally.”
He said the state-pension fund continues to look for local opportunities like infrastructure projects that will produce good returns.
Citing its investment in listed mining firm Nickel Asia through a share purchase, Veloso said GSIS expects the country to eventually acquire the technology in making electronic vehicles (e-vehicles).
“These are very important minerals and eventually, provide an opportunity for jobs to create a lithium battery business operation and eventually evolve into an electric vehicle business,” he said.
The GSIS chief reassured the public that with the research team they have, investment opportunities are being reviewed thoroughly before making corresponding recommendations.
“That is to make sure that we maximize the returns so we can improve the benefits of our members and extend the Fund’s life,” he said.
GSIS’s actuarial life is currently at 32 years and Veloso explained that for this to improve, the agency needs to extend the amount of contribution that its members have. He said the agency also needs to ensure very good investment returns.
“As far as we are concerned, we are making very good returns,” he added.
Under the recently signed agreement between GSIS and Global Infrastructure Partners (GIP), the former’s investment in global infrastructure projects will cover transport, energy and digitalization.
GIP, founded in 2006 and based in New York City, is a leading global independent infrastructure fund manager that administers USD87 billion in assets on behalf of its investor base.
It seeks to invest in power and utilities, natural resources infrastructure, air transport infrastructure, seaports, freight railroad, water distribution and treatment, and waste management.
The firm works in partnership with public sector co-investors and stakeholders to deliver improvements in infrastructure. As the largest owner of private airports, GIP has particularly cemented its position as the leading British airport operator transforming London’s City and Gatwick airports and Scotland’s Edinburg airport into highly profitable and comfortable terminals. (PNA)
