SINGAPORE, July 26 Singapore's biggest sovereign wealth fund GIC [GIC.UL] cut its exposure to developed countries and raised its holdings of emerging market equities during its financial year ended March 2011. [ID:nN1E76O1YY]
GOVERNMENT OF SINGAPORE INVESTMENT CORP:
Singapore's government set up GIC in 1981 to manage the country's foreign exchange reserves.
GIC has three operating units:
- GIC Asset Management, which is responsible for investments in equities, fixed income, foreign currencies, natural resources and absolute returns strategies;
- GIC Real Estate, which handles property; and
- GIC Special Investments, which takes care of private equity and infrastructure investments.
GIC does not disclose its asset size or key investments, unlike smaller sister fund Temasek [TEM.UL] and the Monetary Authority of Singapore (MAS), which is the country's central bank.
GIC says on its website that it manages "well over" $100 billion, but most analysts estimate the fund's assets are around $300 billion. GIC's key investments include stakes in UBS UBSN.VX and Citigroup (C.N), which it helped rescue in the aftermath of the financial crisis.
As of 31 March 2011, the official foreign reserves managed by MAS was S$295 billion ($244.4 billion) and the size of Temasek's portfolio was S$193 billion.
PORTFOLIO BY GEOGRAPHY
(year ago percentage in parenthesis)
Americas 42 pct (43)
- United States 33 pct (36)
- Latin America 4 (2)
- Others 5 pct (5)
Europe 28 pct (30)
- UK 9 pct (8)
- Eurozone 12 pct (16)
- Others 7 pct (6)
Asia 27 pct (24)
- Japan 11 pct (11)
- North Asia 12 pct (10)
- Others 4 pct (3)
Australasia 3 pct (3)
PORTFOLIO BY ASSET CLASSES
Equities 49 pct (51)
- developed markets 34 pct (41)
- emerging markets 15 pct (10)
Fixed Income 22 pct (20)
- nominal bonds 20 pct (17)
- inflation-linked bonds 2 pct (3)
Alternative Investments 26 pct (25)
- real estate 10 pct (9)
- pvt equity & infrastructure 10 pct (10) - absolute return strategies 3 pct (3)
- natural resources 3 pct (3)
Cash and others 3 pct (4)
GIC said its nominal annualised rate of return in U.S. dollar terms was 6.3 percent in the five years to March 31.
The annual return was 7.4 percent over 10 years and 7.2 percent over 20 years.
GIC's real rate of return in excess of global inflation over the past 20 years -- its main benchmark -- was 3.9 percent as at end-March 2011, up from 3.8 percent at end-March 2010.
- Singapore-listed Global Logistic Properties (GLP), whose biggest shareholder is GIC, said in July it has submitted a bid to acquire a portfolio of over 20 industrial assets in Japan from LaSalle Investment Management, confirming media reports. GLP would have to pay up to 140 billion yen for the assets. [ID:nL3E7I4025]
- GIC in June named Singapore Trade and Industry Minister Lim Hng Kiang as acting chairman of GIC Real Estate and Ang Kong Hua will be acting chairman of GIC Special Investments. They replace GIC Deputy Chairman and Executive Director Tony Tan, who has resigned to contest Singapore's presidency. [ID:nL3E7HS04P]
- GIC invested $400 million in commodity giant Glencore's (GLEN.L) initial public offering, making it the firm's second largest cornerstone investor. [ID:nL3E7G41B7] ($1 = 1.207 Singapore Dollars) (Reporting by Kevin Lim; editing by Andre Grenon)