MACTAN, Cebu – The Government Service Insurance System (GSIS) registered a 10 percent growth in net income for the first four months of the year to P18.5 billion, boosted by extra-ordinary gains from the sale of some of its major stock investments.

In an interview, GSIS President and General Manager Winston Garcia said one-time gains were mainly due to the sale of the fund’s 5.9 percent stake in Philex Mining Corporation to a subsidiary of First Pacific Company for P6.02 billion.

He added that there were also gains made from the sale of its stake in Philippine National Oil Company and other equity investments.

Garcia noted that major investments in shares of stocks have resulted in huge profits for the GSIS amounting to about P35 billion to P40 billion in the last three years. He said the Fund’s strategic investment in Manila Electric Company alone yielded a profit of P19.5 billion after it was sold to San Miguel Corporation.

However, Garcia said the sale of major equity investments has resulted in a reduction in the GSIS investment in local stocks to just P10 billion from P48 billion although it has also resulted in a huge cash position.

Aside from the sale of its stake in Philex and Meralco, Garcia said that the sale of the Fund’s stake in Equitable PCI Bank and SMC has made the GSIS cash rich.

He noted that the GSIS has been able to rebuild its fund. Starting from P18 billion nine years ago in 2000, Garcia said he has been able to more than triple this to almost P572.4 billion as of the end of 2009.

Garcia said the growth in assets reflect the success of reforms that have strengthened the overall viability of the System.

Of the amount, about P280 billion is invested in fixed income securities while the rest is in other investments such as real estate and P10 billion in local stocks as well as $600 million in offshore placements.