Singapore’s GIC Annual Report Released

Singapore’s GIC released their latest annual report. As the investment manager for Singapore’s foreign reserves, the sovereign fund targets long-term investments. They believe in harvesting long-term risk premiums, sometimes even being a contrarian investor.

The annualized rolling 20 year real rate of return on March 31, 2012 was 3.9%. Singapore’s GIC reiterated their mandate was to “achieve a good, sustainable real rate of return over a 20-year time horizon.”

In January 2012, Singapore’s GIC created two new board committees to tackle investment strategies, risk and greater internal controls for compliance. The investment review committee is utilized to oversee large investments. With regards to asset allocation, exposure to public equities decreased, and cash holding increased.

At times, up to 20% of the portfolio was managed by external managers.

According to the annual report with regards to the GIC’s externally-managed assets, 58% of external managers are based out of the United States, followed by 22% in Europe. 54% of the total count of external managers fit into the marketable alternatives category.

Annualized Nominal Rates of Return in USD, Period Ending March 31, 2012

5-Year 10-Year 20-Year
Government Portfolio Performance 3.40% 7.60% 6.80%

Source: Annual Report – GIC

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