THE GOVERNMENT Service Insurance System (GSIS) has received a $272-million (about P15.8-billion) payout from a private equity fund following the sale of its stake in a data center operator.
“As of Dec. 30, 2024, the GSIS received a substantial payout of $272 million 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,” the state-run pension fund said in a statement on Tuesday.
“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).”
The GSIS said the windfall boosted its income and, in turn, its fund life, which will benefit its members. As of the first quarter of 2024, the GSIS’ fund life was up to 2058, while its net income in the same period rose by 21% year on year to P37 billion.
“We have a duty to invest prudently on behalf of our millions of hardworking government employees. Our infrastructure investments through MAM’s funds have delivered excellent results, enhancing retirement security while supporting critical infrastructure,” GSIS President and General Manager Jose Arnulfo A. Veloso said.
The GSIS partnered with MAM in 2012 through an investment in the Philippine Investment Alliance for Infrastructure. It invested in MAM’s regional infrastructure funds in 2017 and 2021 to diversify its portfolio.
Mr. Veloso said the state-run pension fund for government employees has seen “strong” returns from its infrastructure investments in the Philippines and in Asia.
“The GSIS maintains a prudent balance in its portfolio, with 70% allocated to low-risk assets for stability and a strategic portion in higher-yielding infrastructure investments to drive returns and support pension fund growth,” the fund added. “The GSIS remains confident its diversified strategy focused on long-term stability will continue to deliver sustainable returns, securing members’ financial well-being.” — A.M.C. Sy
