Government of Singapore Investment Corporation

Government of Singapore Investment Corporation

Republic of Singapore US$ 247.5 Billion
Established: 1981
Transparency Rating: 6
View Sovereign Fund Transaction Data
View Asset Allocation		 Origin: Non-Commodity
Firm Investment Style: Mixed
Entity Structure: Corporate
Population Est.: 5.3 million – 2012
Wealth Per Capita Est.: $46,589
Summary
The Government of Singapore Investment Corporation (GIC) does not own the funds it manages but manages them on behalf of their clients: the Government of Singapore and the Monetary Authority of Singapore. GIC is wholly owned by the Government of Singapore and has three major sovereign wealth enterprises (SWE): GIC Asset Management Pte Ltd, GIC Real Estate Pte Ltd, and GIC Special Investments Pte Ltd.

Background
In the 1970s, Singapore had a high national savings rate, thus reserves grew rapidly.  The Government of Singapore decided that its reserves would be better invested in longer term and high-yielding assets. These assets would be managed by a new institution, the Government of Singapore Investment Corporation. The sovereign wealth fund was established in May 22, 1981 as a private company.

Singapore’s GIC receives an annual government contribution. The contribution is not fixed and is subject to the government of Singapore.

 Strategy & Objectives
The fund was established after a decision by Deputy Prime Minister and Monetary Authority of Singapore Chairman Dr. Goh Keng Swee to invest Singapore’s growing reserves worldwide for higher returns. Furthermore, the Government Investment Corporation of Singapore is to facilitate government savings necessary to meet power strikes, budget deficits, tax hikes, rising oil prices, currency volatility, global disinflation and to support Singapore’s wealth over the long term.

Governance
The Ministry of Finance of Singapore represents the dominant authority of the GIC. The Government of Singapore and Monetary Authority of Singapore set the risk tolerance parameters and expected returns for the long term of the GIC. Three board committees are responsible for ensuring that the GIC operates in an ethically and fiscally positive manner. These committees include: Investment Committee, Risk Committee, and Remuneration Committee.

Sovereign Wealth Enterprises

GIC Asset Management Pte Ltd

GIC Asset Management Group is composed of several departments, including a department that is responsible for the management of GIC’s external managers. Objectives of the GIC Asset Management Group involve outperforming the Morgan Stanley Capital International (MSCI) Indices and Lehman Aggregate Bond Index. Some of the asset classes invested by the departments include the following: Equities, Fixed Income, Foreign Exchange (which includes commodities and money markets), and Alternative Investments.

GIC Real Estate Pte Ltd (GIC RE)

GIC RE was started in 1982 as a real estate investment department within GIC. In April 1999, the real estate department was incorporated as GIC RE. GIC Real Estate Group is among one of the top 10 global real estate investment firms in the world. With over 200 investments across more than 30 countries, investing a multi-billion US$ portfolio. Direct property investments include: offices, retail stores, residential, hotels, senior and student housing, and sports and medical facilities. Indirect property investments include: funds, public and private corporate entities, real estate investment trusts (REITs), and real estate debt.

Notable investments include:

Seoul Finance Centre, Seoul, South Korea

Azia Centre, Shanghai, China

Shiodome City Centre, Tokyo, Japan

Queen Victoria Building, Sydney, Australia

Uptown Munich Tower, Munich, Germany

Westin Paris, Paris, France

Bluewater Shopping Centre, Kent, UK

30 Gresham Street, London, UK

Franklin Centre, Chicago, US

Subsidiaries of GIC RE include:

1. Reco Pearl Pte Ltd – Chinese Subsidiary

2. Reco Shine Pte Ltd – Chinese Subsidiary

3. Reco Shahzan (M) Sdn Bhd (RECO) – Malaysian Subsidiary

4. Recosia Pte Ltd – incorporated in Singapore – which is an asset holding company managed by GIC Real Estate Pte Ltd

5. Jasmine Hotels Pte Ltd

Subsidiaries of Recosia pte Ltd include:

  • Reco Bay NSW – A company incorporated in Singapore as an investment vehicle and registered as a foreign company in Australia.
  • Ipoh Pty Ltd – Owned by Reco Bay NSW, it is a specialist CBD retail property, investment and management company.

GIC Special Investments Private Limited

GIC Special Investment Group (GIC SI) was started one year after the inception of the Government Investment Corporation of Singapore. It is the direct equity investment arm of GIC. Managing a multi-billion US$ portfolio, GIC SI is one of the world’s largest private equity firms. Investments of GIC SI include: leveraged buyouts, venture capital, growth capital, mezzanine financing, distressed situations, infrastructure and other special situation investments. GIC SI is composed of seven groups which include: The Corporate Services Unit, The North America Private Equity Group, Europe Private Equity Group, Global Technology Group, Asia Private Equity Group, Global Infrastructure Group, and the Global Strategy and Investment Group.

Geyser Investment Pte Ltd is part of GIC Special Investments.
Seletar Investments Pte. Ltd is part of GIC Special Investments.
Tetrad Ventures Pte Ltd. is a corporation organized under the laws of Singapore and a 100% owned subsidiary of The Government of Singapore Investment Corporation (Ventures) Pte Ltd.
Indivest Pte Ltd invests in Indian companies

Major Direct Foreign Investments (Public)
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