GSIS receives USD272M payout from MAIF2, boosting pension fund stability

The Government Service Insurance System (GSIS) received a USD272 million payout from the Macquarie Asia Infrastructure Fund 2 (MAIF2) as of December 30, 2024.

This payment follows MAIF2's successful sale of its stake in AirTrunk, a leading data center operator, which has now fully recouped GSIS' initial investment and enhanced the pension fund's financial stability.

GSIS President and General Manager Jose Arnulfo A. Veloso noted that these funds are crucial for earning solid returns to support future pension payments for retired civil servants.

Since 2012, GSIS has partnered with Macquarie Asset Management (MAM), initially investing in the Philippine Investment Alliance for Infrastructure (PINAI) before expanding into other regional infrastructure funds in subsequent years.

The latest payout, along with previous cashflows from MAIF2, boosted GSIS' income and extended its fund life to 2058 by the first quarter of 2024, while net income rose by 21% year on year to P37 billion.

GSIS maintains a balanced investment strategy, allocating 70 percent of its portfolio to low-risk assets and diversifying the remainder into higher-yielding infrastructure investments to drive returns and support pension fund growth.