GSIS investment portfolio expands to 891 billion pesos in 2021

MANILA, Philippines — The state-run Government Services Assurance System (GSIS) has bolstered its investment portfolio to 891 billion pesos by increasing its share in foreign-currency equity and infrastructure markets.

GSIS President and CEO Rolando Macasaet said the provident fund’s investment portfolio had expanded by more than 5% to 890.59 billion pesos last year from 846.4 billion. pesos in 2020.

Macasaet said GSIS increased its investment portfolio last year due to its new investments in equity and foreign currency infrastructure resources.

The 40% jump in foreign currency assets to 257.26 billion pesos by the pension fund manager erased the 4% drop in peso-denominated investments to 633.31 billion pesos.

Similarly, its equity investments more than quadrupled to P69.58 billion, while infrastructure assets more than halved to P26.34 billion.

It also tripled its short-term foreign currency deposits to 22.17 billion pesos from 6.6 billion pesos. This despite the 4% drop in fixed income assets alone to 139.17 billion pesos, which represented the bulk of foreign currency investments.

On peso-denominated investments, Macasaet said fixed income assets fell 13% to 341.66 billion pesos from 394.34 billion pesos.

On the other hand, equity investments recorded a growth of 9% to 212.18 billion pesos, while cash jumped 26% to 74.81 billion pesos.

According to Macasaet, investments in GSIS infrastructure fell by 68% to 4.66 billion pesos due to the completion of some projects which brought 5.11 billion pesos in earnings to GSIS.

Finance Secretary Carlos Dominguez said GSIS members would benefit from expanding his portfolio of GSIS investments…

Dominguez pointed out that the strengthening of the civil servants’ provident fund would allow him, among other things, to set up new programs.

For example, GSIS launched the multi-purpose loan last year by waiving fees on all borrowers’ defaulted debt.

It has also launched a 30,000 peso loan program for the purchase of a computer that members can use for remote work during the pandemic.

GSIS has also opened a financial aid program that offers relatives of members the opportunity to study now and pay later.

Likewise, he introduced the lease-to-own program to prevent families with foreclosed accounts from being evicted from their homes, by offering them monthly rent charges that are less than the monthly installment amortization.

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