GSIS profit hits P57B; eyes investments in renewable energy
The Government Service Insurance System (GSIS) profit rose by over a fifth to P57 billion last year as revenues rose on improved market conditions.
But the state-run pension fund will not rest on its laurels as it eyes more investments in infrastructure, especially renewable power projects, to sustain its fund life.
GSIS officer-in-charge Nora Malubay-Saludares told the Inquirer last week that the 2016 profit improved from P47 billion in 2015 as the losses from investments in bonds and stocks had been trimmed. Revenues reached P152 billion, higher than 2015’s P140 billion.
Saludares said the financial markets were down in 2015 and 2016, such that the average return on investment (ROI) from bonds and stocks averaged only 5 percent. This brought the ROI in the last five years to 7-8 percent, still enough to allow the agency to generate more revenues and sustain the fund life up to 2049.
In order to further extend the fund life, the GSIS board was looking into ramping up its infrastructure investment, especially in renewable energy projects, wind farms, cold storage as well as transport projects, including railways, Saludares said.
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