GIC reports 4.5% real return on investments
Posted: 23 September 2008 1403 hrs
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Dr Tony Tan
SINGAPORE: The Government of Singapore Investment Corp (GIC) revealed Tuesday that it achieved real return of 4.5% above global inflation from investments made over the past 20 years till 31 March 2008.
This was contained in GIC's first report published on how it is managed and governed, and how it invests Singapore’s foreign reserves.
In the 48-page document, the GIC also revealed that it had achieved a nominal annual rate of return from investments that was 5.8% in Singapore dollar terms, or 7.8% in US dollar terms.
Dr Tony Tan, deputy chairman and executive director of GIC told a news conference that the report was put together as both the Singapore public and international investment community will benefit from the clarity and disclosure on GIC's purpose, processes, governance, goals and its values.
This is especially with the growing interest in sovereign wealth funds (SWF) and how GIC, as a 27-year-old SWF, invests and operates.
"GIC has and will always invest for only one purpose – to achieve sustainable financial returns for the Government of Singapore’s assets" said Dr Tan at the news conference.
He also pledged that the GIC would continue to fulfil its mission of building up Singapore’s foreign reserves despite the challenging economic times.
Dr Tan told the media that the GIC has held steadfast over the years to its sole mission, which is to preserve and enhance Singapore’s foreign reserves.
"GIC's investment objective is to achieve a reasonable rate of return above global inflation with due regard to risks," he told reporters.
"GIC has met the investment objective by achieving an annualised real return of 4.5% over the same period, that is the 20-year period ended 31 March '08 despite global shocks like the dotcom bubble burst, the Asian financial crisis and the ongoing credit turmoil in the international financial markets."
Dr Tan said one key strategy of the GIC has been to diversify its assets while always focusing on long-term financial gains.
Being a professional fund management company responsible for investing
Singapore’s reserves, Dr Tan said the GIC has moved into assets like real estate, private equity and other alternative instruments while keeping a bulk of investments in public equities.
According to the report which is available at the GIC website, the GIC managed well over US$100 billion in investments - a figure it has released previously.
As of March 31, the biggest component of GIC's portfolio was in the Americas, with the United States alone accounting for 34%. The report also revealed that Europe accounted for 35%, Asia 23% and Australasia two per cent.
Since late last year, GIC made multi-billion dollar investments in global financial institutions suffering massive losses from US subprime, or higher-risk, mortgage investments.
The subprime crisis has wreaked havoc in financial markets and led to a credit squeeze and fears for the global economy.
GIC announced in December that it would inject US$10.2 billion into Swiss bank UBS, and in January said it would pump US$6.88 billion into US banking giant Citigroup, another subprime victim.
- AFP/CNA/ybsf
Posted: 23 September 2008 1403 hrs
Photos 1 of 1
Dr Tony Tan
SINGAPORE: The Government of Singapore Investment Corp (GIC) revealed Tuesday that it achieved real return of 4.5% above global inflation from investments made over the past 20 years till 31 March 2008.
This was contained in GIC's first report published on how it is managed and governed, and how it invests Singapore’s foreign reserves.
In the 48-page document, the GIC also revealed that it had achieved a nominal annual rate of return from investments that was 5.8% in Singapore dollar terms, or 7.8% in US dollar terms.
Dr Tony Tan, deputy chairman and executive director of GIC told a news conference that the report was put together as both the Singapore public and international investment community will benefit from the clarity and disclosure on GIC's purpose, processes, governance, goals and its values.
This is especially with the growing interest in sovereign wealth funds (SWF) and how GIC, as a 27-year-old SWF, invests and operates.
"GIC has and will always invest for only one purpose – to achieve sustainable financial returns for the Government of Singapore’s assets" said Dr Tan at the news conference.
He also pledged that the GIC would continue to fulfil its mission of building up Singapore’s foreign reserves despite the challenging economic times.
Dr Tan told the media that the GIC has held steadfast over the years to its sole mission, which is to preserve and enhance Singapore’s foreign reserves.
"GIC's investment objective is to achieve a reasonable rate of return above global inflation with due regard to risks," he told reporters.
"GIC has met the investment objective by achieving an annualised real return of 4.5% over the same period, that is the 20-year period ended 31 March '08 despite global shocks like the dotcom bubble burst, the Asian financial crisis and the ongoing credit turmoil in the international financial markets."
Dr Tan said one key strategy of the GIC has been to diversify its assets while always focusing on long-term financial gains.
Being a professional fund management company responsible for investing
Singapore’s reserves, Dr Tan said the GIC has moved into assets like real estate, private equity and other alternative instruments while keeping a bulk of investments in public equities.
According to the report which is available at the GIC website, the GIC managed well over US$100 billion in investments - a figure it has released previously.
As of March 31, the biggest component of GIC's portfolio was in the Americas, with the United States alone accounting for 34%. The report also revealed that Europe accounted for 35%, Asia 23% and Australasia two per cent.
Since late last year, GIC made multi-billion dollar investments in global financial institutions suffering massive losses from US subprime, or higher-risk, mortgage investments.
The subprime crisis has wreaked havoc in financial markets and led to a credit squeeze and fears for the global economy.
GIC announced in December that it would inject US$10.2 billion into Swiss bank UBS, and in January said it would pump US$6.88 billion into US banking giant Citigroup, another subprime victim.
- AFP/CNA/ybsf
