November 27, 2022

Bicol Express News

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GSIS invested 2.2 billion funds in the Energy Transition Mechanism

Photo via Metro News Central

The 2.2 billion pesos investment of GSIS in the ACEN Energy Transition Mechanism was in line with the government’s call to support infrastructure programs and initiatives to promote clean energy according to the corporate news release of the government-owned and controlled corporation.

This represents parts of the 20% investible liquid assets of the state pension fund disclosed by PGM Wick Veloso during his visit to Sorsogon lately.

The investment is in line with their corporate social responsibility to invest in areas that prioritized optimal environmental, social and governance factors or outcome that is expected to yield high dividends for the more than two million fund members and pensioners upon its maturity leading to an opening and opportunity to further diversified investible funds.

Veloso added that the actuarial life of GSIS will be strengthened with its partnership with ACEN. Not disclosed was the estimated yield of the latest investment.

In 2007 the state pension fund invested in a highly politicized environment over which it has no control and was looking for a fund manager to oversee an overseas investment of as much as 400 million USD aside from its current investment fund at that time managed by ING Investment Management (ING.AS)and Credit Agricole Asset Management (Singapore) Ltd. CAGR.PA.

The lack of transparency of GSIS disclosing its Global Investment Program to its members and pensioners if it is gaining or losing money and the extent to which it is gaining or incurring losses was observed by then-Senator Ernesto Herrera since the global stock market was turbulent then.

The observation of Marie dela Rama of the Centre for Corporate Governance, of the University of Technology Sydney, that GSIS at that time is that of “a heavily politicized organization in which investment and funding decisions are not carried out in an impartial way and supra-organizational issued must be considered.”

The state pension fund’s latest investment was a bridge financing that will lend a hand for ACEN’s transition to reach Net Zero gas emissions in 2050.

ACEN is the energy platform of the Ayala Group of Companies recognized as the most outstanding company in the energy sector listed on the Philippine Stock Exchange.