GSIS eyes investing $300-M in PPP fund

Expecting return on investments of 9 to 15 percent a year, the Government Service Insurance System (GSIS) Thursday said it plans to invest $300 million in a public-private partnership fund with multilateral institutions.   The fund it is setting up with Asian Development Bank (ADB) and International Finance Corporation (IFC) could raise $500 million to $750 million for the Aquino administration’s PPP infrastructure projects, GSIS president and general manager Roberto Vergara said in a media briefing.   IFC is the private sector investment arm of the World Bank, while ADB is Asia’s multilateral development lender and technical grants source for both private and public programs.   The GSIS head said the choice of fund manager could be made as early as  February.   He also revealed that the GSIS might double its portfolio equity exposure following its decision to wind down its activity in the international market, which is beset with difficulties stemming from the financial woes of Europe and the United States.   The GSIS invested $670 million in foreign financial markets last. Its  unaudited net income of P57.5 billion for 2011 is 24 percent more than the P46.3 billion in 2010.   Net income for the pension fund of government workers is expected at P60 billion to P65 billion, Vergara noted. — ELR/VS, GMA News