CalPERS invests P2.1B in Phl firms

MANILA, Philippines - The California Public Employees’ Retirement System (CalPERS), manager of the largest public pension fund in America, has invested some $51 million in 27 Philippine companies, Cebu Rep. Eduardo Gullas said yesterday.

He said the US pension fund’s investment, worth some P2.1 billion at the current exchange rate, demonstrates the rising foreign investor confidence in the Philippines and the national leadership.

“We welcome the investment, which also shows investor confidence in some of our best-managed companies,” he said.

He said more than half of CalPERS’ portfolio was invested in Philippine Long Distance Telephone Co. and Metrobank.

The other beneficiaries of the US pension fund’s investment were Bando de Oro, Bank of the Philippine Islands, Ayala Land, Meralco, SM Investments, Globe Telecom, Ayala Corp., Metro Pacific Investments Corp., DMCI Holdings, SM Prime, Jolibee, Cebu Air, Energy Development Corp., First Gen Corp., San Miguel Corp., Manila Water, First Philippine Holdings, Philex, Vista Land, Robinsons Land, Megaworld, Universal Robina, Filinvest Land, Alliance Global, and Aboitiz Power Corp.

CalPERS administers the $240-billion fund for the pension and health benefits of more than 1.6 million California public employees, retirees and their families.

Meanwhile, Gullas credited the strong local stock market for enabling some of the biggest Philippine firms to raise fresh capital either through the private placement of newly issued shares to selected investors, or the sale of additional shares to existing stockholders in a rights offering.

“This ability to raise virtually free capital in turn has encouraged listed companies to expand their enterprises and increase hiring of staff, thus helping to drive economic as well as employment growth,” he said.

According to the Philippine Stock Exchange, listed companies raised a record-high P175 billion in fresh capital from the stock market in the first nine months of 2012.

Gullas said the lively bourse has also helped to enrich pensioners and members of the Social Security System and the Government Service Insurance System.

The two state-run pension funds are among the largest institutional investors in the stock market.