Foreign Affairs Secretary Delia Albert described the 30-day extension granted by CalPERS as an "initial victory" for the Philippines.
Last Feb. 17, the investment committee of CalPERS agreed to give the Philippines a 30-day period in which to prove its case after the consultancy firm Wilshire Associates gave the Philippines a failing grade as an investment destination.
Wilshire Associates, the consultancy firm of CalPERS, gave the Philippine market a score of 1.86, which is below the score of 2.0 in order to qualify as an investment site for the biggest pension fund in the US.
The failing grade meant the delisting of the Philippines from the Permissible Equity Markets list of CalPERS.
CalPERS have an estimated $67 million invested in Philippine stocks.
The Philippine government contested the report of Wilshire Associates, saying that it had a consistent bias towards erroneous assessments made on the Philippines.
After representations were made by the Philippine government led by Ambassador to the US Albert Del Rosario, the pension fund agreed to give the Philippines 30 days to presents its side and dispute the report of Wilshire Associates.
As the 30-day period lapsed last Tuesday, the 13-member investment committee of CalPERS agreed to extend the period for another 30 days upon the request of the Philippine team.
Albert commended the efforts of Del Rosario and the rest of the team which consisted of representatives from the Department of Finance, ACCRA Law and the Philippine Consulate General in Los Angeles, California.
The team was able to present several reform measures implemented by the Philippine government, including securities regulation, creditors’ and shareholders’ rights, special protection against child abuse, Exploitation and Discrimination Act and the Optical Media Act.
It also underscored the country’s wide implementation of the IOSCO Principles for Effective Securities Regulation since 2001 as confirmed by the World Bank and International Monetary Fund in their joint report.
Albert said that the second 30-day extension was an initial victory for the Philippines and that she is optimistic that CalPERS will come out with a positive final decision on the Philippines during its next meeting on April 19.