|
STATE-OWNED Government Service Insurance System (GSIS),
which still has to deploy $400 million of its $1-billion
investment portfolio in overseas markets, has decided to
proceed with the selection of its fund managers, but
this time under more rigorous terms.
In a
statement sent through e-mail, GSIS president and
general manager Winston Garcia said selecting the fund
managers this November will proceed as planned.
“We are
proceeding, although, as a matter of prudence, we have
required all our potential bidders to disclose their
exposure in the US market,” he said.
Garcia
previously mandated the Singaporean unit of the
French-owned Credit Agricole and the Dutch
financial-services giant ING Bank to manage $600 million
worth of GSIS funds for a three-year period.
Citibank
NA was named global custodian in that transaction.
“Because
of this economic turmoil, that will be a part of our
consideration. We have to require them to make the
proper disclosure, especially their asset-backed or
mortgage-backed investments,” Garcia said of the next
set of money managers who will handle the balance of
Garcia’s global investment program, or GIP.
He
claimed the funds entrusted to Credit Agricole and ING
Bank were placed in several baskets of assets and
invested not just in the United States but in a diverse
number of markets.
“That’s
the beauty of the GIP. We have ensured the investments
are diversified not only geographically but also in
terms of asset class. Our fund managers were given the
flexibility to determine their investment strategy, both
in the asset allocation and the instrument selection,
and where they want to put the investments. The GIP is
not limited to US stocks,” Garcia said.
He also
expressed optimism the ongoing financial turmoil would
not last very long.
“We have
taken a three-year view for the GIP. The market may be
down now, but over the next couple of years it could
bounce back. We also must remember that in every crisis
there is an opportunity. The freefall of the US stocks
means stocks have become cheap. Over time, it’ll be a
good time to buy,” he said.
He noted
the original GIP attracted 36 global fund managers whose
proposals were evaluated on the basis of competence and
track record.
The
ground rules also specified only asset managers with at
least $100 million in assets under management may
qualify under the GIP.
“This
ensured that the GSIS will deal only with fund managers
that have proven their credibility as shown by the
amount of assets that they are already managing,” Garcia
said. |
