Philippines’ top pension fund is poised to expand its equity holdings by up to 1%, capitalizing on a global selloff triggered by Middle East tensions. President Wick Veloso of the Government Service Insurance System (GSIS) emphasized seizing “diamond-in-the-rough” opportunities during volatile times. The fund, managing 2 trillion pesos ($34.4 billion) in assets, currently allocates 21% to equities, with plans to boost this if favorable valuations emerge.

Veloso, a former HSBC Philippines CEO, highlighted telecoms, infrastructure, and consumer sectors as resilient bets, alongside preferred shares for stable dividends. Market analysts note the fund’s risk-averse strategy, with 72% in risk-free assets and 40% in government securities, underscores its cautious approach. The Philippine benchmark index, currently at 6,426.83 points, faces support at 6,100 points amid broader regional selloffs. Veloso’s strategy reflects confidence in long-term gains despite short-term fears, prioritizing “predictable revenue” over speculative bets.

The fund’s 6.4% profit growth last year signals its financial strength amid asset expansion.