GIC (Singaporean sovereign wealth fund) - Wikipedia

Established by the Government of Singapore in 1981 as the Government of Singapore Investment Corporation, its mission is to preserve and enhance the ... GIC(Singaporeansovereignwealthfund) FromWikipedia,thefreeencyclopedia Jumptonavigation Jumptosearch Singaporeansovereignwealthfund GICPrivateLimitedHeadquartersatCapitalTowerTypeSovereignwealthfundIndustryFundmanagementFounded22 May1981;40yearsago (1981-05-22)FounderGovernmentofSingaporeHeadquartersSingaporeKeypeopleLeeHsienLoong(Chairman)LimChowKiat(CEO)[1]AUMUS$744billion(August2021)[2]Numberofemployees1,500[3]Websitewww.gic.com.sg GICPrivateLimitedisasovereignwealthfundtomanageSingapore'sforeignreserves.EstablishedbytheGovernmentofSingaporein1981astheGovernmentofSingaporeInvestmentCorporation,itsmissionistopreserveandenhancetheinternationalpurchasingpowerofthereserves,withtheaimtoachievegoodlong-termreturnsaboveglobalinflationovertheinvestmenttimehorizonof20years.Withanetworkof10officesinkeyfinancialcapitalsaroundtheworld,GICinvestsinternationallyindevelopedmarketequities,emergingmarketequities,nominalbondsandcash,inflation-linkedbonds,privateequityandrealestate.[4] TheSovereignWealthFundInstitute(SWFI)hadestimatedthefund'sassetsatUS$744 billion.[5] InadditiontoGIC,theGovernmentofSingaporeownsanothersovereignwealthfund,TemasekHoldings,whichmanagesaboutSGD$405 billionofassets.[6] Contents 1History 2Investments 3Performance 4Governanceandriskmanagement 5Newinvestmentframework 6References 7Externallinks History[edit] In1981,GohKengSwee,thenfirstDeputyPrimeMinisterandChairmanoftheMonetaryAuthorityofSingapore(MAS),sawthetrendofSingapore'srapidlygrowingforeignreservesanddecidedtoinvestSingapore'sreservesforthefutureofthenationandthewelfareofitspeople.HewasadvisedbytheBritishmerchantbank,NMRothschild&Sons,andestablishedtheGIC.[7] Thegovernmentthenembarkedonachangeininvestmentpolicybyinvestingthebulkofitsforeignreservesinlonger-term,high-yieldingassetsratherthaninliquidbutlow-yieldingassets.[8] AnundisclosednumberofthosewholefttheMASin1981wenttoworkforthenewGIC.Inthelate1990s,fourofitsmostseniorpositionswereheldbyformerMonetaryAuthorityofSingaporeofficers. Investments[edit] GIChastheabilitytoinvestacrossafullspectrumoffinancialassets,fromsovereigndebttoinfrastructure,andmanagesapproximately80percentofitsportfolioin-house.[9] Traditionally,GIChaskeptalowprofileinitsinvestments.[10]Duringthesubprimemortgagecrisisof2007–2010,however,anumberofitsinvestmentsattractedcontroversy.In2013,accordingtotheSovereignWealthFundInstitute,theGICwasoneofthemostactiveSWFinvestorsfortheyear.[11] In2006,attheheightoftheUSrealestatebubble,itmadeaUS$200 millioninvestmentintheequityofStuyvesantTown—PeterCooperVillage,thelargestapartmentcomplexinManhattan(aswellasUS$575 millioninsecondaryloans).Themanagementofthecomplex,TishmanSpeyerPropertiesandBlackRockRealty,defaultedontheirloanin2010,effectivelywipingouttheinvestment.[12][13] Inlate2007,duringthefirstphaseofthecrisis,GICinvested$11 billionSwissfrancsfora7.9%stakeintheSwissbankUBS.Theloanswereconvertedintoequityin2010,withanestimated70%lossofvalue,thoughpartiallyoffsetbya9%fixedcoupon.[14][15]GIChadacknowledgedthatthetimingfortheinvestmentcouldhavebeenbetter.ItalsostatedthatotherinvestmentsmadeatthattimehavehadpositivereturnswhichoffsetthelossesonUBS.GIC'stotalportfoliohasfullyrecoveredtoitsvaluepriortotheglobalfinancialcrisis.[16] In2008,GICinvestedUS$6.88 billionfora9%stakeinCitigroup.[17]In2009,itpareditsstaketolessthan5%,realisinga$1.6 billionprofit,withanother$1.6 billionpaperprofitonitsremainingholding.[18] On30July2013,Singapore'sGICwaspartofaconsortiumtoacquireTransportetInfrastructuresGazFrance(TIGF)whichisTotal'sgastransportationandstoragebusinessforanenterprisevalueof€2.4 billion(US$3.25 billion).TheconsortiumincludesSnam(45%)anItaliangasstorageandtransportoperator,Singapore'sGIC(35%)andEDF(20%).[19] Asof2017,GICholdsaround34%ofitsportfoliointheUS;3%inLatinAmerica;6%intherestofAmericas;6%intheUnitedKingdom;12%intheEurozone;6%intheMiddleEast,AfricaandtherestofEurope;19%inAsiaexcludingJapan;12%inJapanand2%inAustralasia.[20] In2017itwasreportedthatGICwouldpurchasea10%stakeinBritishspecialistbankOakNorthfor90millionpounds.[21] In2021theytookpartinainvestmentroundinDapperLabs.[22] Performance[edit] In2008,GICpublishedforthefirsttimeareportcontaininginformationonits20-yearreturnsandmoreinformationonhowitismanagedandgoverned,andhowitinvestsSingapore'sforeignreserves. GICdoesnotdisclosetheamountoffundsitmanagesanditsannualprofitandloss.RevealingtheexactamountwouldexposethefullsizeofSingapore'sfinancialreservesandmakeiteasierforspeculatorstoattacktheSingaporedollarduringperiodsofvulnerability.[23] Since2011,GIChadalsopublishedthe5-yearand10-yearnominalratesofreturntoprovideasenseoftheongoingmedium-terminvestmentperformance,evenwhileGICmaintainsitssightsonthelongterm.Itincludedtwocompositeportfoliosandvolatilitystatisticstoreflectthelevelofportfolioriskandtoofferperspectiveinreadingthe5-yearand10-yearfigures. Fortheyearended31March2017,itsannualised20-yearrealrateofreturnwas3.7%.InUSDnominalterms,GICachievedanannualisedreturnof5.1%,4.3%and5.7%forthe5-year,10-yearand20-yeartimeperiodsrespectively.[20] InAugust2021,theirestimatesalsoputthetotalfigureofAUMatUS$744billion–orjustoverS$1trillion,forthefirsttimeinGIC’shistoryaftera37.5percentsinreturn. Governanceandriskmanagement[edit] ThefundsmanagedbyGICareownedbytheSingaporeGovernment.Itsinvestmentreturnssupplementthecountry'sannualbudgetinareassuchaseducation,R&D,healthcareandphysicalenvironment.[24] AsaFifthSchedulecompanyundertheSingaporeConstitution,GICisaccountableinvariouskeyareastothePresidentofSingaporewhoisempoweredundertheconstitutiontoobtaininformationtoenablehertosafeguardthecountry'sreserves.TheAuditor-General,whoisappointedbythePresidentofSingapore,submitsanannualreporttothePresidentandParliamentonhisauditoftheGovernmentandotherbodiesmanagingpublicfunds.[25] GICmanagesriskbyinvestinginawell-diversifiedportfolio,withabalanceddistributionofassetclassesandtheirunderlyingbusinesssectorsandgeographies.This,too,iswhyGIC'sperformancehastobemeasuredonthebasisofitsoverallportfolioratherthanbyhowmuchitmakesorlosesonindividualinvestments.[26]Itsapproachto"riskmanagement"hasthreedistinctcomponents:portfoliorisk;processriskandpeoplerisk.[27] AsaboardmemberoftheInternationalForumofSovereignWealthFunds,[28][29]thesuccessoroftheInternationalWorkingGroupofSWFsthatdevelopedtheSantiagoPrinciplesinOctober2008,GICpublisheshowitadoptsandimplementsthevoluntarysetofprinciplesandpractices.[30] Newinvestmentframework[edit] GICimplementedanewinvestmentframeworkin2013togiveitmoreflexibilitytofocuson"investmentsthatmayberiskierintheshorttermbutwouldgeneratereturnsinthelong-term."[31] ThenewframeworkdefinesmoreclearlyGIC'sriskandreturndrivers,itslong-terminvestmentobjectivesandtheresponsibilitiesoftheGICboardandmanagement.[32] Thenewapproachseesitsportfoliostructuredunderthreedrivers. Firstly,a'ReferencePortfoliois65%madeupofglobalequitiesand35%ofglobalbondsrepresentingglobalmarkets.ItcharacterisestheriskthattheGovernmentispreparedforGICtotakeinitslong-terminvestmentstrategies.Next,thePolicyPortfolioismadeupofsixcoreassetclassesandaimstoachievesuperiorreturnsoverthelonghorizonandisthemaindriveroflong-termreturns.LastistheActivePortfolio,whichseekstooutperformthePolicyPortfolio,isofskill-basedstrategies,adoptedbyGIC'smanagementwithinrisklimits.Theskill-basedstrategiesincludeschoosinginvestmentopportunitieswithineachassetclassandinvestinginassetclassesnotcontainedinthesimplifiedPolicyPortfolioandcross-assetclassstrategies.[33] References[edit] ^"LimChowKiatnamedGICCEOfromJan2017".ChannelNewsAsia.Archivedfromtheoriginalon16January2017.Retrieved15January2017. ^"GICretainspositionasmostactivestate-ownedinvestor:report". ^https://www.owler.com/company/gic ^"FY16/17ReportontheManagementoftheGovernment'sPortfolio"(PDF).Archivedfromtheoriginal(PDF)on15March2018.Retrieved15March2018.Retrieved21March2018. ^"GICretainspositionasmostactivestate-ownedinvestor:report". ^"PortfolioPerformance".Retrieved21March2018. ^Hamilton-Hart,Natasha(2003).Asianstates,Asianbankers :CentralbankinginSoutheastAsia.Singapore:SingaporeUniversityPress.p. 89.ISBN 9971-69-270-8. ^"HistorySG".GovernmentofSingaporeInvestmentCorporationisFormed.NationalLibraryBoardSingapore.Retrieved30May2015. ^"SovereignWealthFundsLookforInsideEdgebyManagingMoneyIn-House."InstitutionalInvestor.24September2013.Retrieved27September2013. ^Transcript:TonyTanofSingapore’sGovernmentInvestmentCorporateFinancialTimes ^"TheMostActiveSovereignWealthFundInvestorsof2013".SovereignWealthFundInstitute.25March2014. ^Lim,Kevin(11January2010)."GICsaysbookedlossfrom$675mlnStuyvesantinvestment".Reuters. ^Bagli,CharlesV.;Haughney,Christine(25January2010)."WideFalloutinFailedDealforStuyvesantTown".NYTimes.Retrieved4May2010. ^"GICinvests$14 billioninSwissbankUBS".AsiaOne.11December2007. ^"UBSstakemaybeworth70pctlessasGICconverts".Reuters.11February2010. ^Huang,Ryan(19September2011)."GICdefendsUBSinvestment".ChannelNewsAsia. ^"Citigroup".GIChomepage.2009.Archivedfromtheoriginalon22April2009.Retrieved13May2010. ^"GICParesCitigroupStake".Bloomberg.22September2009. ^"GICPrivateLimitedPartofConsortiumthatAcquiresTotal’sGasTransportandStorageUnit."SovereignWealthFundInstitute.16August2013.Retrieved21August2013. ^ab"FY16/17ReportontheManagementoftheGovernment'sPortfolio"(PDF).Archivedfromtheoriginal(PDF)on15March2018.Retrieved15March2018. ^ReutersEditorial."Singapore'sGICtakes$120millionstakeinBritain'sOakNorthbank".U.S.Retrieved30July2018. ^"NBATopShotcreatorDapperLabsraisesanother$250million". ^"GICManagesitsinvestmentportfolioforthelongterm".Today.23September2011.Archivedfromtheoriginalon15April2012.Retrieved29December2011. ^"AskMOF".SingaporeMinistryofFinance.2011.Retrieved22October2016. ^"InstitutionalFrameworkandGovernanceStructure"(PDF).2011.Archivedfromtheoriginal(PDF)on27October2011.Retrieved29December2011. ^"GICManagesitsinvestmentportfolioforthelongterm".23September2011.Archivedfromtheoriginalon15April2012.Retrieved29December2011. ^"GICinariskyworld".OxfordSWFProject.27July2011.Archivedfromtheoriginalon26April2012.Retrieved29December2011. ^"SantiagoPrinciples".Gic.com.sg.Retrieved22October2016. ^"GICPrivateLimited".InternationalForumofSovereignWealthFund.Retrieved22October2016. ^"Singapore'sGIC:AssessThyself!".OxfordSWFProject.9August2011.Archivedfromtheoriginalon30December2011.Retrieved29December2011. ^"GICchangesinvestmentframeworkforgreaterflexibility".Today.2August2013. ^"GICposts4%realreturnsrate".ChannelNewsAsia.2August2013. ^"FeatureArticle:GIC'sNewInvestmentFramework".GIC.2August2013.Archivedfromtheoriginalon16September2013.Retrieved8October2013. Externallinks[edit] "OfficialWebsiteofGovernmentofSingaporeInvestmentCorporation" "GovernmentofSingaporeInvestmentCorporation|SovereignWealthFundInstitute" vteAuthenticBrandsGroupSubsidiaries Aéropostale Arrow BrooksBrothers EddieBauer Forever21 Frederick'sofHollywood Frye HartSchaffnerMarx HervéLeger HickeyFreeman Izod JuicyCouture LuckyBrandJeans Nautica Prince Reebok SportsIllustrated SportsIllustratedKids SwimsuitIssue Spyder Tapout VisionStreetWear Volcom BrandsCompanies Barneys NineWest Thomasville Persons AdrienneVittadini ElvisPresley GregNorman JudithLeiber JuliusErving MarilynMonroe MuhammadAli ShaquilleO'Neal Thalía VinceCamuto Majorshareholders BlackRock GeneralAtlantic GIC JamieSalter LeonardGreen&Partners LionCapital KeyPeople JamieSalter(Founder&CEO) Category Commons vteGovernmentofSingaporePoliticsofSingapore•PresidentofSingapore•CabinetofSingaporeMinistriesCurrent PrimeMinister'sOffice MinistryofCommunicationsandInformation MinistryofCulture,CommunityandYouth MinistryofDefence MinistryofEducation MinistryofFinance MinistryofForeignAffairs MinistryofHealth MinistryofHomeAffairs MinistryofLaw MinistryofManpower MinistryofNationalDevelopment MinistryofSocialandFamilyDevelopment MinistryofSustainabilityandtheEnvironment MinistryofTradeandIndustry MinistryofTransport Former MinistryofCommunityDevelopment,YouthandSports MinistryofInteriorandDefence Centralbank MonetaryAuthorityofSingapore Sovereignwealthfund GIC TemasekHoldings Seealso:Template:StatutoryboardsofSingapore Authoritycontrol VIAF 1 WorldCat Retrievedfrom"https://en.wikipedia.org/w/index.php?title=GIC_(Singaporean_sovereign_wealth_fund)&oldid=1075874568" Categories:Government-ownedcompaniesofSingaporeFinancialservicescompaniesestablishedin1981Sovereignwealthfunds1981establishmentsinSingaporeInvestmentcompaniesofSingaporeHiddencategories:ArticleswithshortdescriptionShortdescriptionisdifferentfromWikidataEngvarBfromFebruary2017UsedmydatesfromFebruary2017ArticleswithVIAFidentifiersArticleswithWORLDCATIDidentifiers Navigationmenu Personaltools NotloggedinTalkContributionsCreateaccountLogin Namespaces ArticleTalk English expanded collapsed Views ReadEditViewhistory More expanded collapsed Search Navigation MainpageContentsCurrenteventsRandomarticleAboutWikipediaContactusDonate Contribute HelpLearntoeditCommunityportalRecentchangesUploadfile Tools WhatlinkshereRelatedchangesUploadfileSpecialpagesPermanentlinkPageinformationCitethispageWikidataitem Print/export DownloadasPDFPrintableversion Languages العربيةDeutschEspañolفارسیFrançaisBahasaIndonesiaItalianoMagyarBahasaMelayu日本語Português中文 Editlinks