37 fund managers submit proposals for GSIS global foray

MANILA, Philippines — A total of 37 external fund managers have already submitted their proposal for the Government Service Insurance System’s (GSIS) $800 million global investment program, the state fund said yesterday.

In a press briefing, GSIS president and general manager Jesus Clint Aranas said 37 firms have already applied to qualify as external fund managers to handle the GSIS’ overseas investments under its Multi-Asset Strategy Program.

Aranas said the GSIS is still open to more submissions as it has extended the deadline for the proposals until April 13.

“(We extended the deadline) because we want more fund managers to choose from. We want to be very transparent. We want more because we want to get the best of the best,” Aranas said.

Out of all the applicants, the GSIS chief said only two fund managers would be chosen.

While it has not yet set the deadline for when it will determine the two final fund managers, Aranas said the GSIS wants to award the contract within the year.

Under the Multi-Asset Strategy Program, the GSIS will deploy $800 million of its total investible assets into foreign currency denominated instruments.

Aranas said the program aims to diversify its investments, and ultimately, help the GSIS grow its income from investments.

The original deadline for the proposal from fund managers was set for Feb. 16, but was first moved to March 16. Last Friday, the pension fund announced another extension up to April 13.

The evaluation period of technical proposals has likewise been moved to April 16 up to June 1.

To qualify as a fund manager, the GSIS said the proponents must be duly authorized by regulatory agencies in the country and must already be managing a multi-asset fund of at least $20 billion.

They should also have professionals with a minimum of 40 years cumulative professional experience in managing multi-asset portfolio, and have an office located in the Asia-Pacific region within the Philippine time zone, or willing to set up an office in the Philippines within the next six months.

They should also be compliant with Global Investment Performance Standards. Interested applicants are invited to submit proposals to the GSIS.

As of end-November 2017, the GSIS’ net income jumped 52.52 percent to P84.15 billion from P55.17 billion the same period in 2016.

Total assets, meanwhile, rose eight percent to P1.09 trillion. About 62 percent of this are invested in financial assets, 24 percent in loans to GSIS members, six percent in investment properties, four percent in cash, and four percent in property, equipment and other assets.