GSIS keeps private investment deal with Macquarie
Huge returns make this set-up justifiable.
The Government Service Insurance System (GSIS) will keep investing in a private fund managed by a global firm in order to generate more revenues to support pension payments.
In a statement, the GSIS vouched for Macquarie Infrastructure and Real Assets and its management of the Philippine Investment Alliance for Infrastructure, a private equity fund supporting local projects.
“This private fund vehicle works for us since we are able to successfully tap the expertise of experienced investors, which ensures a good risk-return profile for our investments,” President and General Manager Jesus Clint Aranas said in a statement.
Who can say no to this when return on investments reached at least 13 percent in 2017?
“The greater returns that this fund is generating helps GSIS to lengthen its actuarial life (currently at 35 years or until 2051 using 2016 yearend data) that will enable us to fulfill our current and future obligations to our members and pensioners,” Aranas said.