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Philippine Pension Fund Sees Buying Opportunity in Market Volatility
3 Mar
Summary
- Pension fund may increase equity holdings by 1% amid market downturn.
- Telcos, infrastructure, and consumer stocks are seen as good bets.
- Fund maintains 72% of assets in risk-free investments, mostly government securities.
The Government Service Insurance System (GSIS), the Philippines' largest pension fund, is considering expanding its equity portfolio amidst market turmoil. President Wick Veloso believes that the current stock market downturn, exacerbated by Middle East conflict, presents a chance to acquire assets at lower prices.
The fund, which manages approximately 2 trillion pesos, currently allocates 21% of its assets to equities. Veloso indicated a potential increase of up to 1% in this allocation, emphasizing a strategy of buying when markets are not at their best. He identified telecoms, infrastructure, and consumer companies as promising sectors within the Philippine equity market during periods of volatility.
Despite opportunities in equities, GSIS maintains a conservative approach, with about 72% of its assets invested in risk-free options, primarily government securities. The fund reported a profit of 344.5 billion pesos last year, with assets growing to 1.96 trillion pesos.
