GSIS to invest $300 million in global infrastructure fund

MANILA, Philippines — State-run pension fund Government Service Insurance System (GSIS) is investing $300 million (P16.6 billion) in a global infrastructure fund as it moves to boost its asset portfolio.

GSIS president and general manager Wick Veloso recently inked an agreement with New York-based Global Infrastructure Partners (GIP).

Under the agreement, GSIS will invest $300 million for global infrastructure projects covering transport, energy and digitalization.

In particular, GSIS will put resources into GIP’s Emerging Markets Fund, which is a specialized equity under its global equity fund.

“This is in line with our continued effort to further diversify our assets and generate higher returns for the benefit of our more than two million members and pensioners,” Veloso said.

GIP’s investing history in emerging markets started in 2007. Its Emerging Markets Fund seeks to provide investors with a differentiated investment opportunity to access Asia and Latin America.

It is primarily focused on energy, transport, digital, water and waste, among others.

Overall, GIP is one of the world’s largest infrastructure investors and currently manages $87 billion in assets on behalf of its global investor base.

GIP’s current top officials are a former president of the World Bank and a chief executive officer of the International Finance Corp.

It seeks to invest in power and utilities, natural resources infrastructure, air transport infrastructure, seaports, freight railroad, water distribution and treatment, and waste management.

Since the start of the new administration last year, Veloso said the pension fund would pour more resources into infrastructure projects in a bid to widen its investment portfolio.

It is estimated that GSIS has P104 billion in its existing investment pool that can be tapped.

Just last week, GSIS invested in listed mining firm Nickel Asia Corp. through the purchase of some 233.558 million common shares worth P1.46 billion.