Government of Singapore Investment Corporation
From Taighde
| Government of Singapore Investment Corporation | |
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| Country: | Singapore
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| Chairman: | Lee Kuan Yew
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| CEO: | Tony Tan Keng Yam
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| Based in: | Singapore
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| Inception: | 22 May 1981
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| Assets: | $300 billion
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| Website: | http://www.gic.com.sg
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| Reports | Sovereign Wealth Funds Contact and Information Report |
The Government of Singapore Investment Corporation (GIC) is the 3rd largest Sovereign Wealth Fund with assets of over $300 billion . It has over 1,000 employees in nine offices across the world. According to the GIC, it has invested in over 40 different markets. GIC is wholly owned by the Government of Singapore, which also manages investments through a second company, Temasek Holdings. It was formed on 22 May 1981. The fund invests Singapore's official foreign reserves and also some of the Central Provident Fund, the compulsory state social security fund.
It is incorporated under the Companies Act. It has been designated, under the Constitution of Singapore, as a "Fifth Schedule" company and must submit financial statements and budgets to the President of Singapore. It is also regularly audited by the Auditor-General.
Contents |
Board of Directors and Senior Management
For a complete list of the GIC Board of Directors and Senior Management, please see the main GIC Leadership page.
Chairman: Lee Kuan Yew, Minister Mentor
Deputy Chairman: Lee Hsien Loong, Prime Minister & Minister for Finance
Deputy Chairman & Executive Director: Tony Tan Keng Yam, Former Deputy Prime Minister & Coordinating Minister for Security & Defence
Units
The GIC has three units, each concentrating on a separate area of investment. They are:
- GIC Asset Management Pte Ltd (GAM) to handle public markets
- GIC Real Estate Pte Ltd (GIC RE)
- GIC Special Investments Pte Ltd (GIC SI) to handle private equity investments
IPO of logistics units
According to press accounts, the GIC is expected to place several of their real estate and logistics units in China and Japan up for an IPO in October 2010. The GIC is believed to have added additional assets to the IPO in August. The IPO was originally expected to raise over $700 million but with the additional assets added, the value is expected to increase to between $2 billion and $3 billion. UBS, China International Capital Corp, and DBS are acting as bookrunners.[1]
Investments
Size of Fund
The GIC has admitted that they have just over $100 million invested; however, our estimate, along with other analysis, have put that number over $300 billion. The reason for this large discrepancy is GIC accounting rules. The GIC counts only direct investments, rather than indirect investments. They will also not count joint investments made by GIC units with other companies.
Investments sold by GIC
Four Penn Center · Hemliner · Menara Standard Chartered · Olympus
Actual asset class distribution --- March 31, 2010
| Asset class | % | 2009 | 2008 | |
|---|---|---|---|---|
| Public Equities | Developed Markets | 41 | 28 | 34 |
| Emerging Markets | 10 | 10 | 10 | |
| Fixed Income | Nominal Bonds | 17 | 19 | 20 |
| Inflation-Linked Bonds | 3 | 5 | 6 | |
| Alternatives | Real Estate | 9 | 12 | 10 |
| Private Equity, Venture Capital & Infrastructure | 10 | 11 | 8 | |
| Absolute Return Strategies | 3 | 3 | 3 | |
| Natural Resources | 3 | 4 | 2 | |
| Cash & Others | 4 | 8 | 7 | |
| Total | 100 | 100 | 100 | |
Country specific breakdown
As of March 31, 2010
| Region | Country | % 2010 | % 2009 | % 2008 |
|---|---|---|---|---|
| Americas | Total | 43 | 45 | 40 |
| United States | 36 | 38 | 34 | |
| Others | 7 | 7 | 6 | |
| Europe | Total | 30 | 29 | 35 |
| United Kingdom | 8 | 6 | 8 | |
| France | 5 | 5 | 5 | |
| Germany 4 | 4 | 3 | ||
| Italy | 2 | 3 | 3 | |
| Others | 11 | 11 | 10 | |
| Asia | Total | 24 | 24 | 23 |
| Japan | 11 | 11 | 11 | |
| North Asia | 10 | |||
| Others | 3 | 3 | 4 | |
| Australasia | 3 | 2 | 2 | |
| Total | 100 | 100 | 100 | |
2009 Economic Stimulus
The government of Singapore has announced a stimulus package worth USD 13.7 billion consisting of job preservation efforts, bank lending, infrastructure development, and enhancing business cash-flow and competitiveness. To meet the financial demands of the stimulus, the government will tap reserves held by the Government of Singapore Investment Corporation and the Monetary Authority of Singapore (the central bank).[2]
Investment Strategy
Fixed income investments have been reduced significantly from over three-quarters of the portfolio 25 years ago, to about one-quarter.
About one-third of GIC assets are managed by external fund managers, while the rest are managed by internal departments.
Mission
"To achieve good long-term returns on state assets placed under our charge by investing internationally, with due regard to risk and the nature of associated liabilities."[3]
Objectives
"To preserve and enhance the international purchasing power of Singapore’s reserves, by achieving a real rate of return over and above the G3 inflation rate over a long-term horizon.
"For medium-term performance monitoring, to outperform an appropriate composite of recognised market indices, through optimal allocation among and within asset classes.
"To build a cohesive organisation of excellence that will attract, develop, motivate and retain quality employees."[4]
Offices
See the full list of offices
The GIC will open an office in Mumbai, India in the last quarter of 2010.
Annual Report
GIC's most recent annual report
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