Private Equity Fund investments boost Philippine pension fund Macquarie Asset Management pays out $272 Million or PHp 15.8B to GSIS

Funds invested by the Government Service Insurance System (GSIS) in infrastructure investments have boosted its income, helping the pension system extend its fund life. As of December 30, 2024, the GSIS received a substantial payout of $272 million (approximately Php15.8 billion), 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.

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).

This is good news for GSIS members as the funds are invested to earn solid returns, helping to boost the financial strength of the GSIS and its capacity to cover pension payments of retired civil servants in the future.

The GSIS partnered with MAM in 2012, investing in the Philippine Investment Alliance for Infrastructure (PINAI) to support local infrastructure development. The pension fund later invested in MAM’s regional infrastructure funds in 2017 and 2021, to further diversify its portfolio and generate returns.

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.

GSIS President and General Manager Wick Veloso said the GSIS sees strong returns from its investments in infrastructure in the Philippines and around the Asian region, benefiting its more than two million members.

“We have a duty to invest prudently on behalf of our millions of hardworking government employees,”  Veloso said. “Our infrastructure investments through MAM’s funds have delivered excellent results, enhancing retirement security while supporting critical infrastructure.”

The GSIS remains confident its diversified strategy focused on long-term stability will continue to deliver sustainable returns, securing members’ financial well-being.