Philippine Fund Seeks to Increase Stock Holdings Amid Market Selloff

Philippines' Pension Fund Eyes Equities Opportunity Amid Market Volatility

The Government Service Insurance System (GSIS), the Philippines' top pension fund, is considering expanding its equities portfolio as the global market selloff fueled by the Middle East conflict presents a buying opportunity. As the fund's president, Wick Veloso, stated, the current market conditions offer a chance to identify undervalued assets.

GSIS, which manages 2 trillion pesos ($34.4 billion) in assets, with 21% allocated to equities, may increase its stock holdings by another 1% if opportunities arise. Veloso, a seasoned financial expert with over two decades of experience at HSBC Holdings Plc, believes that times of market volatility are ideal for discerning investors to identify good, bad, and ugly assets.

The Philippine Stock Market's benchmark index, PSEi, closed at 6,426.83 points on Monday, down 2.8%, its sharpest slide since last April. Veloso expects support for the index at around 6,100 points.

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GSIS, the pension fund for nearly 3 million workers in the public sector, is focusing on sectors such as telecoms, infrastructure, and consumer companies, which are expected to perform well during times of volatility. The fund is also exploring investments in preferred shares of top local firms, given their predictable dividend streams.

GSIS has allocated 72% of its assets to risk-free investments, with 40% invested in government securities. The company reported a 344.5 billion pesos profit last year, a 6.4% increase from the previous year, with assets rising 8.2% to 1.96 trillion pesos.