The Government Service Insurance System (GSIS), the Philippines' top pension fund, is considering expanding its equity portfolio amid current market volatility. According to reports from Bloomberg, the fund, which manages approximately ₹16,400 crore ($34.4 billion) in assets, currently holds 21% of its portfolio in equities and may increase this allocation by another 1% if suitable opportunities arise. President Wick Veloso emphasized the fund's strategy of buying when markets are not at their best, stating there are opportunities to find 'diamonds in the rough' during periods of market stress.
The Philippine stock market experienced significant volatility, with the benchmark index closing at 6,426.83 points on Monday, down 2.8% - marking its sharpest decline since April 2025. As reported by Bloomberg, Veloso identified support for the Philippine stock market at around 6,100 points. The selloff was primarily driven by global tensions, including Iran's retaliation against US-Israeli strikes that killed the Islamic Republic's supreme leader, with President Trump indicating the bombing campaign could continue for weeks.
According to Bloomberg reports, GSIS is targeting specific sectors during volatile periods, including telecommunications, infrastructure, and consumer companies. The fund is also exploring investments in preferred shares of top local firms, which provide predictable dividend income. Veloso noted the fund's preference for 'predictable sources of revenue instead of quantifiable' returns, reflecting a conservative approach to equity investments during uncertain times.
As reported by Bloomberg, GSIS maintains a conservative asset allocation with 72% of its assets in risk-free investments, including 40% in government securities. The fund serves nearly 3 million workers in the Philippines' public sector and posted ₹2,900 crore in profit last year, representing a 6.4% increase from 2024. Total assets under management grew 8.2% to ₹16,400 crore, demonstrating the fund's continued growth trajectory despite market challenges.