GSIS to boost alternative investments as revenue soars in 2023

By Wilnard Bacelonia

February 19, 2024, 6:22 pm

<p><em>(File photo)</em></p>

(File photo)

MANILA – The Government Service Insurance System (GSIS) is committed to further increase its revenue by investing on private equity (PE) and real estate.

This, after the state pension fund announced to have generated a 33 percent increase in revenues last year to PHP311.3 billion from PHP234.9 billion in 2022.

This translated to a 70-percent surge in net income from PHP66.4 billion to PHP113.3 billion, and a staggering 3,903 percent rise in total comprehensive income from PHP3.6 billion to PHP143.4 billion compared to the previous year.

“GSIS remains to be strong as we continue to search for yield to boost its generation of revenue. To this end, we have increased focus on alternative investment, including PE and real estate," GSIS President and General Manager Wick Veloso said in a statement.

Despite the challenges markets faced last year, Veloso said strategic and proactive management of both its stocks and bonds portfolio resulted in a "favorable rate of return for the Fund".

“We continue to push and do our best to boost long-term profitability of the GSIS and support the overall economy. We strive to establish a diversified portfolio by securing new investment opportunities. Our risk profile has remained balanced with our fixed income having extended its average tenor to 7.8 years while maintaining average yield at 7.3 percent in a climate of declining rates,” he assured.

Meanwhile, the total assets of GSIS also increased by 11 percent, or from PHP1.5 trillion to PHP1.7 trillion. (PNA)