Pension fund GSIS to invest more in PHL stocks

Government Service Insurance System (GSIS) on Friday revealed it will invest more funds in shares traded on the Philippine Stock Exchange, banking on the current bull run that is lifting prices to record levels.

 

In a briefing,  GSIS president and general manager Robert Vergara said the pension fund for government employees is funneling more money into Philippine equities and raising its total exposure to as much as 19 percent investible funds for 2013 year from 15 percent in 2012. 

 

Citing how GSIS chalked up P104 billion in revenues from the stock market last year, Vergara said the pension fund wants to seize the opportunities presented by a bull market already gained by 8.7 percent in the year-to-date. 

 

“I think the 6,500 level will be exceeded,” said Vergara, referring to the PSEi0. “I will not be surprised if the market runs up to the 7,000 level this year,” he added.

 

The pension fund stands to gain an additional P12 billion once the PSEi hits 6,500 mark, P16 billion at 6,800, and P20 billion at 7,000, the GSIS chief noted. 

 

Given the strong capital inflows and investor confidence high on the inevitability of an investment grade credit rating this year, Vergara is quite optimistic about the stocks market's sustained upward trend.

 

GSIS is keen on investing in shares of banks, property and gaming companies, and unloading stocks pending resolution of government’s revenue sharing scheme with mining companies under Executive Order 79 or the new Philippine mining policy, according to the GSIS official.

 

The PSEi spiked past the 6,300 mark on Friday, gaining 75.87 points or 1.21 percent at 6,318.61, its 13th all-time high for the year. http://www.gmanetwork.com/news/story/292984/economy/finance/philippine-stocks-hit-13th-all-time-high-on-gdp-report

 

As one of the largest institutional investors in the stock market, GSIS registered P685 billion worth of investible funds as of end-December 2012. 

 

Its portfolio investments consists of 45 percent in fixed-income placements, 30 percent in loans to members, 15 percent in equities and 5 percent in properties. — SOA/VS, GMA News