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STATE-RUN Government Service Insurance System (GSIS)
said it is looking at a double-digit growth this year on revenues
from investments in the domestic and foreign markets.
Winston F. Garcia, GSIS president
and general manager, said despite the low interest rates, the state
pension fund is eyeing 10 percent growth to P46.2 billion in profits
this year, from P42 billion a year ago, adding that it will increase
investments abroad.
“It will be a very tough year
that’s why we have to go out to generate more than 4 percent of
return of investment,” Garcia told reporters.
He said the on going US housing
woes and the strong peso affected the pension fund’s revenues last
year, adding these downside risks will continue this year.
“Tough because of the US
market. Secondly, the strengthening of the peso, it has an effect
[on] our domestic economy. It’s already unhealthy,” Garcia said.
The GSIS executive said interest
rates would also continue their downtrend.
“When the interest rates are
lower, less income also for us,” he added.
At end-September last year, GSIS
posted a 20-percent growth in net operating revenues to P35 billion
mainly fueled by its local investments.
The pension fund realized
revenues of P153.4 million earned from domestic investments managed
by local fund managers.
GSIS earlier tapped Metropolitan
Bank and Trust Co., Bank of the Philippine Islands and Banco de Oro
Universal Bank to manage P6 billion in net investible funds for a
period of three years starting in 2007.
The three banks were assigned to
be the local fund managers of the GSIS with a mandate of P2 billion
each.
Garcia said GSIS pensioners
continue to get the highest retirement benefits in the country as
the state pension fund further increased the amount it provides.
Since 2000, GSIS has increased
its monthly pension benefit by as much as 84 percent.
--Chino S. Leyco
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