SINGAPORE - Singapore sovereign wealth fund GIC saw a dip in real returns in its latest annual review, as it warned that global economic and geopolitical uncertainty, high valuations and low economic growth rates may weigh on future returns.
It announced on Monday (July 10) a 20-year annualised real rate of return of 3.7 per cent above global inflation on its portfolio for the period ended March 31, 2017, from 4 per cent a year ago.
GIC manages a mix of government surpluses and inflows from the Central Provident Fund.
While it does not disclose the size of its assets under management, the London-based Sovereign Wealth Center puts its total holdings at US$354 billion (S$489 billion), making it the world's fifth-biggest state fund.
GIC also disclosed its holdings in its main asset classes were almost unchanged from last year, with 35 per cent in nominal bonds and cash, up from 34 per cent. That is higher than the long-term target allocation in the fund's model portfolio and reflects GIC's current cautious investment stance.
GIC had 34 per cent of its holdings in the US, 19 per cent in Asia excluding Japan, 12 per cent in the euro area, 12 per cent in Japan, and 6 per cent in Britain.
Among GIC's largest investments for the year in review was its purchase of a US$500-million stake in Alibaba Group Holding from SoftBank Group, alongside Temasek Holdings, which made a similar-sized acquisition. GIC has been a long-time investor in Alibaba since before the e-commerce giant's initial public offering in 2014.
List of GIC's key investments over last two years
Investments it sourced and brought in partners:
- GIC and The Scion Group to Acquire University House Communities Group and brought in CPPIB
- GIC to acquire D-Cube Retail Mall in Seoul and brought in CPPIB
Investments it executed on its own and with partners:
- Purchase of a US$500-million stake in Alibaba Group Holding from SoftBank Group
- Increased stake in Kelda Holdings, parent company of Yorkshire Water, which is the 5th largest water and sewerage company in Britain
- Mergermarket, a global financial intelligence company
- Two blocks of student housing in Sydney's Central Park precinct, with Iglu
- GIC, PSP and North Island invest in Virtu Financial, a leading electronic trading firm and market-maker
- GIC and PT Intiland Development Tbk invested in South Quarter, an integrated mixed-use complex in Jakarta
- GIC/CPPIB/Scion acquire three US Student Housing Portfolios for US$1.6 Billion
- CanFin Homes, one of India’s leading housing finance companies
- GIC and Unite Students acquired Aston Student Village in Birmingham
- ALT Group, manufacturer of electric vehicle systems in China
- NextEV, electric carmaker based in Shanghai
- Watermark, a leisure and dining development in Southampton, Britain
- GIC and Tencent to invest in HERE, to develop location services for the China market
- GIC entered into strategic partnership with PT Nusantara Sejahtera Raya (NSR), Indonesia’s largest cinema operator
- 100% of P3, a leading owner, developer and manager of logistics properties in Europe for €2.4 bn
- G-Square City retail complex in Seoul
- YES! Communities (“YES!”) in US
- GIC and GSA to invest in British and German student accommodation markets
- GIC and Fortis to invest in ITC Holdings Corp, US
- 100% in Hyundai Logistics Distribution Center in Icheon, South Korea
- GIC and Brigade Group acquire landmark property at Perungudi, Chennai
- Shakey’s Pizza restaurant chain in the Philippines, with Century Pacific Group
- GIC and PT Trans Retail to invest in Indonesia’s retail market
- GIC and PT Mega Manunggal Property (MMP) to develop logistic properties in Indonesia
- GIC and Shinsegae to build a prime retail mall in Songdo, Korea
- Bloomage Biotech in China
- 100% of Greenko Group PLC's majority interest in Greenko Mauritius, a leading owner and operator of clean energy projects in India
- GIC & Macerich to invest in five US retail assets
- GIC & DLF to develop two projects in Central Delhi
- Via Parque Shopping, a mall in Rio de Janeiro
- Rede D’Or, Brazilian hospital chain
Investments we co-invested with a fund manager
- Visma, a leading European Software company, with HgCapital
- Pharmaceutical Product Development (PPD), leading global contract research organization, with Hellman & Friedman and the Carlyle Group
- Allfunds Bank, a leading global financial technology business, with Hellman & Friedman
- Neustar, a trusted, neutral provider of real-time information services, with Golden Gate Capital
- Washington D.C. office portfolio with Beacon Capital Partners
- 60 Wall Street office building in New York with Paramount Group
- Leslie’s Holdings, retailer and online marketer of swimming pool and spa supplies and services, with L Catterton
- CeGeREAL, best in class French office REIT, with Northwood Investors
- Ancestry, leading provider of online family history data and personal DNA testing, with Silverlake
- WaveRock Project in Hyderabad, India, with Tishman Speyer
- Veritas, an information management systems provider, with Carlyle Group
- RAC, second-largest roadside assistance provider across the UK, with first Carlyle and now CVC