GSIS eyes 10% income growth

The Government Service Insurance System (GSIS) expects to grow its net income by about a tenth to between P60 billion and P70 billion this year as it focuses on domestic investments and selling some real estate.

In 2011, the GSIS posted a net income of some P57.5 billion (unaudited) after earning P120 billion and spending some P62.5 billion. This meant a profit growth of 25 percent from P46 billion in 2010.

Robert G. Vergara, GSIS president and general manager, said in a briefing that the state agency intends to put more of its investable funds in the equities market and tourism-related projects.

Vergara said that at the same time, the pension fund plans to sell three parcels of land within the first semester “and possibly more in the second semester.”

He said the GSIS may deploy an additional P20 billion in equities this year on top of the P67 billion already invested in stock shares, mainly in power and telecommunications concerns.

He added that after pulling out from its global investment program last year, the agency has no plans of putting money abroad.

“We want to stay local (because) our economy has a lot of defensive characteristics, including the high level of liquidity and the room that the central bank has to lower its policy rates and prop up the currency,” Vergara said.

Further, the GSIS chief said the pension fund will sell within the first half its 18,000-square-meter property at the Ortigas business district, which is currently being used as an impounding yard by the Metro Manila Development Authority.

Also slated on the auction block are the former Jai-Alai property along Taft Avenue in Manila and the GSIS office along Legaspi Street in Makati City.

“Prices are very attractive right now and these properties may be put to better use,” Vergara said.