GSIS eyes fixed income investments as volatility grips stock markets

MANILA, Philippines - Government Service Insurance System (GSIS) is positioning its investible funds in fixed income investments amid the global financial meltdown hitting equities markets. "We have readjusted our strategy. We are favoring a fund manager who is good in fixed income," GSIS President Winston Garcia said. GSIS still has $400 million earmarked for offshore investments as part of its $1 billion Global Investments Program. It earlier tapped Credit Agricole Asset Management and ING Investment to each manage $300 million worth of investments outside the Philippines. Garcia said GSIS will look disclose its chosen fund managers early next year. "It is better to start off at the start of a fiscal year as there is not a lot of activities towards the end of the year since companies are closing their books," Garcia added. GSIS is eyeing consistent positive returns for its global investments over a three-year period. It seeks returns in dollar terms of at least an average of eight percent annually, with an average volatility of not more than seven percent. The state-run fund manager is scouting for a company which handles at least $100 billion in investments and whose portfolio managers and analysts have at least a minimum of 20 years cumulative professional experience in handling an absolute-return portfolio. - GMANews.TV