When word first got out that Lehman Brothers and American International Group (AIG) collapsed in the US, critics of the Government Service Insurance System (GSIS) said that was the end of GSIS. They thought that with GSIS having $1-billion in its Global Investment Program (GIP) and with New York-based Citibank NA as fund custodian, GSIS must have been hit by the US economic meltdown.
Not so, not so, GSIS chief Winston Garcia said. “GSIS has absolutely no investment in either Lehman or AIG.”
In fact, Garcia said, the $600 million in GIP funds managed by ING Management and Credit Agricole had, in the few months of their being invested, already earned P1.250 billion for GSIS. That’s P1.250 billion more that would redound to the good of GSIS, said Garcia. That’s P1.250 billion that GSIS would never earn in as short a time in the local market. Sen. Edgardo Angara confirmed this, saying that the local market simply cannot absorb the investment capability of the state pension fund.
Offshore investments of the GSIS are doing much better than local investments, thus GSIS thought it wise to invest $400 million more under the GIP. The P1.250 billion it earned is five percent of its invested fund. And this, despite the adverse international market conditions.
Garcia said that the GIP model was able to withstand the full impact of the American meltdown, showing its soundness. Under the GIP, only fund managers with at least $100 billion in assets under management (AUM) were allowed to bid. Roughly, Garcia said, “the GSIS investment parameter called for returns of at least eight percent, and a ceiling of seven percent for market volatility.”
GSIS pensioners need not worry about Citibank being the GIP fund custodian and being a US firm. Garcia said “That’s a non-issue, because as a custodian, Citibank does not invest GIP funds, but handles income collection, transactions settlement, fund valuation, accounting, compliance monitoring, transition management and securities lending. In short, Citibank NA does not invest a single cent of the GSIS GIP. It acts as a bank, that’s all.”
So why invest abroad at all, and not just keep the pensioners’ money in the local banks? The GSIS, said Garcia, pays more in benefits and claims than what it receives as premium contributions. “When more money flows out than comes in, then it’s just a matter of time before even the biggest stash of buffer funds run dry.”
At present, the actuarial life of GIS - the number of years it can meet members’ claims and benefits - stands at 35 years. That’s 25 years longer than that of other local pension funds.
If GSIS is to increase those 35 years, it must “tip the cash flow” in its favor, meaning more money should come in to replenish what’s going out to pay members.
Garcia announced that while the GIP had shown good performance, that will not stop the GSIS “from continuously improving its program by, for example, including provisions for proper disclosure, especially on asset-backed or mortgaged backed investments.”
Critics can rest in peace about the wisdom of GSIS foreign investments.
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The list of supporters of the Reproductive Health Bill is getting longer and longer — an indication that more people who read the provisions of the bill are convinced that it is not for abortion and that couples have the right to plan and space the number of their children.
Church groups have expressed support for the bill, and the latest word we have is that majority of overseas Filipino workers are for it. There are 11 million OFWs as of latest count - a sector that should be given access to information on reproductive health, especially on methods to protect them from contracting and spreading HIV/AIDS and other sexually transmitted diseases.
In the other day’s papers, Cristita Triunfante, executive director of the Mayon International Development Alternatives and Services, Inc. (Midas), an NGO partnering with the Global Fund AIDS project in preventing the spread of HIV/AIDS and other STDs, emphasized the need to educate people who are highly vulnerable to sexually-related diseases, like people in prostitution, male having sex with male persons, and migrant workers on reproductive health issues.
OFWs, including if not especially seamen, are reported to be vulnerable to contracting STDs in international port stops. Let’s not be moralistic by telling them they should refrain from having sex with the “local lasses.” Of course, as bishops would say, abstain, abstain, abstain! The saints and really spiritual will heed that call, but for legions of lonely workers, they throw such call to the winds. In many cases, they become infected, and carry back home their infection to their waiting spouses.
Ms. Triunfante was quoted as saying that once the RH bill is passed and signed into law, there will be more comprehensive reproductive health services for these workers, including the proper management of STI cases and their prevention.
Like other bill supporters, Ms. Triunfante is urging RH bill proponents to hold dialogues in as many places possible to inform people of the advantages of having access to RH services, and correct the lies and malicious information spread by bill oppositors.
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Common Ground, a popular band in California famous for its rhythm and blues, will be presented in Dumaguete city through a concert sponsored by the Silliman University College of Nursing tonight, Oct. 11, at the Lamberto Macias Sports Complex. Dumaguetenos will be proud that the band’s lead vocalist, is Leo “Mercedes” Villamil of Valencia, Negros Oriental.
Proceeds of the concert will support the SU College of Nursing Scholarship fund and its community outreach program. The concert will also provide an avenue for young local musicians to showcase their talents with the active participation and support of the Christian Cooperative Ministries. For details, contact the SUCNAA president, Fely Gonzales, through CP 0917-3777535.
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Graduates of the Aurora A. Quezon Elementary School at Cordillera St. in Galas District, Quezon City, will hold a grand alumni homecoming on February 7, 2009. Class 1959 will host the event, which has for its theme, “Balik Tanaw sa Nakaraan Tungo sa Isang Maunlad na Kinabukasan.”
Alumni may register with Marina Razon Samaniego at tel. no. 8539401 and cel 0920-9345971 and Roberto Robledo at 7253996 and cel 0918-9340776.
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My e-mail: dominimt2000@yahoo.com