Private equity fund investments boost Philippine pension fund
As of 30 December 2024, the GSIS received a substantial payout of $272 million (approximately P15.8 billion), from the Macquarie Asia Infrastructure Fund 2 (MAIF2), following the successful sale of the fund’s stake in AirTrunk, a leading data center operator in the region
Government Service Insurance System president and general manager Wick Veloso says the GSIS sees strong returns from its investments in infrastructure in the Philippines and around the Asian region, benefiting its more than two million members. The pension fund has invested in Macquarie Asset Management’s regional infrastructure funds in 2017 and 2021, to further diversify its portfolio and generate returns.
photgraph courtesy of GSIS
Funds invested by the Government Service Insurance System (GSIS) in infrastructure investments have boosted its income, helping the pension system extend its fund life.
As of 30 December 2024, the GSIS received a substantial payout of $272 million (approximately P15.8 billion), from the Macquarie Asia Infrastructure Fund 2 (MAIF2), following the successful sale of the fund's stake in AirTrunk, a leading data center operator in the region.
With this latest cashflow into the GSIS, along with previous payouts from MAIF2, the pension fund has now recouped more than its initial investment in the fund managed by the Macquarie Asset Management (MAM).
Good news
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.
MAM is a global asset manager offering investment solutions across public and private markets. Approximately AUD916.8 billion as of September 2024 were managed by MAM in assets globally, with a team of over 2,400 professionals in 25 markets.
The GSIS partnered with MAM in 2012, investing in the Philippine Investment Alliance for Infrastructure (PINAI) to support local infrastructure development.
MAM regional infrastructure funds
Later, the pension fund invested in MAM's regional infrastructure funds in 2017 and 2021, to further diversify its portfolio and generate returns.
The GSIS maintains a prudent balance in its portfolio, with 70 percent allocated to low-risk assets for stability and a strategic portion in higher-yielding infrastructure investments to drive returns and support pension fund growth.
GSIS president and general manager Wick Veloso said the GSIS sees strong returns from its investments in infrastructure in the Philippines and around the Asian region, benefiting its more than two million members.
Prudent investments
"We have a duty to invest prudently on behalf of our millions of hardworking government employees," Veloso said. "Our infrastructure investments through MAM's funds have delivered excellent results, enhancing retirement security while supporting critical infrastructure."
The GSIS is confident that its diversified strategy focused on long-term stability will continue to deliver sustainable returns, securing members' financial well-being.