GSIS to invest $1B in foreign currency instruments

The Philippines’ Government Services Insurance System on Friday announced that it is planning to invest up to $1 billion in foreign currency-denominated instruments “in line with its portfolio diversification plan." In a request for proposal posted on its website, GSIS said it will select fund managers from among those interested, each of whom will be given a mandate starting at $300 million each. GSIS also said it may increase the amount of the investment eventually should it perform well. The firm said it expects the fund, in US dollar terms, to have a return of at least 8 percent, and an average volatility of not more than 7 percent. “There should [also] be adequate provisions for an exit mechanism in case GSIS wants to liquidate the investment," GSIS said. - GMANews.TV