Singapore’s Sovereign Wealth Centers on Asia

trees_sovereign_wealthSingapore’s GIC Private Limited’s investment portfolio is currently 28% allocated to Asia, but recent investments committed by the sovereign fund, as well as announcements made by QFII, a quota program in mainland China, could skew that number higher.

In conjunction with Philippine-based Ayala Corp., the Singaporean sovereign wealth fund purchased DBS Group Holdings’ 9.9% stake in the Bank of the Philippine Islands (BPI), according to a release issued by the institutional investor. According to the report, the total transaction value was ₱29.6 billion (US$ 680.1 million), and the GIC and Ayala took 5.6% and 4.3% stakes, respectively.

Earlier in the day, reports were issued that a GIC backed company Greenko Group Plc. just finished a 51-megawatt wind project. The GIC invested £100 million (US$ 150 million) in the Hyderabad-based owner/operator of clean energy projects in May of this year. Greenko’s goal is to build about 2,000 megawatts of hydropower and wind energy by 2018.

Lastly, reports from Chinese news agencies have stated that the investment quota under the QFII program will rise from 1.5% of mainland China’s total market capitalization to 10%. The GIC already enjoys one of the highest quotas at US$ 1 billion. According to the Sovereign Wealth Fund Transaction Database, among countless investments in China, their investments include US$ 30 million in sports equipment manufacturer and retailer Li Ning.

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