PHILIPPINES- The Government Service Insurance System (GSIS) said it would name the fund managers and global custodian for its US$1bn venture into foreign capital by the second week of October.
It comes after nine fund managers presented their respective investment proposals to the GSIS after it decided to embark on a global investment programme (GIP) to further broaden its asset base.
The fund managers included: BNP Paribas; Credit Agricole Asset Management; and Northern Trust Global Investment.
The $1bn budget for the GIP is equivalent to approximately 12% of the total assets of the GSIS.
With the implementation of the GIP, the GSIS said the remaining 88% of its assets would remain invested domestically.
Under the request for proposal, the GSIS has given the global fund managers a requirement to meet an 80% floor limit on return of investments as well as a ceiling of 7% on volatility, diversification and liquidity.
Those vying to be the custodian of the P245.9bn ($5.3bn) fund, include State Street Bank and Trust Co, and Citigroup.
Winston Garcia, GSIS president and general manager of the GSIS, said: “This strategy aims to diversify risks on our investments, maintain consistently high investment yields and put into practice good corporate governance over our investments.”
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