GSIS to increase equity investments in 2012 | Inquirer Business

GSIS to increase equity investments in 2012

Gov’t fund brimming with optimism
/ 10:53 PM November 27, 2011

MANILA, Philippines—The Government Service Insurance System (GSIS) wants to raise its equity investments in 2012, believing that the country’s economic climate will improve.

According to GSIS president and general manager Robert Vergara, the government pension fund may allocate up to 15 percent of its investable funds in stocks next year.

At present, 10.5 percent of GSIS funds is tied up in equities.

Article continues after this advertisement

“The outlook for the Philippine economy is pretty good, given continuing [foreign exchange] inflows from the BPO [business process outsourcing] and OFW [overseas Filipino workers] sectors, and the onset of PPP [Public-Private Partnership] program,” Vergara said.

FEATURED STORIES

The expected rise in BPO investments will bolster economists’ outlook that the domestic economy will grow at a slightly faster pace next year.

For this year, the government said, economic growth could fall between 4.5 and 5.5 percent.

Article continues after this advertisement

Remittances from OFWs are seen to remain strong and will continue to aid consumption of households.

Article continues after this advertisement

Also, the government expects to see the results of the PPP program as early as next year when infrastructure projects will have started.

Article continues after this advertisement

Most of the PPP projects are now in the feasibility study or bidding preparation stages.

Vergara said that although GSIS would want to take advantage of the favorable economic outlook for 2012, the government fund’s investments in stocks would be “moderately agressive.”

Article continues after this advertisement

Over the past years, GSIS earned an average of 10 percent from its equities investments, he said.

GSIS has investments in various publicly listed stocks, such as those of telecommunications and mining firms.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

Vergara said the central bank in 2012 could keep interest rates at current levels to favor equities investors.

TAGS: economy, equity investments, GSIS, Philippines

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.