GSIS reaps $272 million from strategic infrastructure investments

- Advertisement -

In a significant boost for the Government Service Insurance System (GSIS), the Philippine pension fund has received a remarkable payout of $272 million (approximately PHP 15.8 billion) from Macquarie Asset Management. This payout follows the successful sale of the Macquarie Asia Infrastructure Fund 2’s (MAIF2) stake in AirTrunk, a leading data center operator in the region, marking a pivotal moment for GSIS and its members.

As of December 30, 2024, this latest cash influx has allowed GSIS to recoup more than its initial investment in the fund managed by Macquarie Asset Management (MAM). The financial windfall not only enhances GSIS’s income but also extends its fund life, ensuring that it can meet future pension obligations for its members.

“This is good news for GSIS members as the funds are invested to earn solid returns, helping to boost the financial strength of the GSIS and its capacity to cover pension payments of retired civil servants in the future,” said Wick Veloso, President and General Manager of GSIS. With over two million members relying on its financial stability, GSIS is committed to making prudent investments that yield solid returns.

- Advertisement -

The partnership between GSIS and MAM began in 2012 with an investment in the Philippine Investment Alliance for Infrastructure (PINAI), aimed at bolstering local infrastructure development. In subsequent years, GSIS diversified its portfolio further by investing in MAM’s regional infrastructure funds in 2017 and 2021.

GSIS maintains a balanced investment strategy, allocating 70% of its portfolio to low-risk assets for stability while strategically investing in higher-yielding infrastructure projects. This approach is designed to drive returns and support the growth of the pension fund.

Veloso emphasized the importance of these investments: “We have a duty to invest prudently on behalf of our millions of hardworking government employees. Our infrastructure investments through MAM’s funds have delivered excellent results, enhancing retirement security while supporting critical infrastructure.”

Looking ahead, GSIS remains confident that its diversified strategy will continue to deliver sustainable returns, securing the financial well-being of its members for years to come.

Author

- Advertisement -

Share post: