Singapore - GIC, Temasek, MAS, MoF & CPF 04 (Mar 20-Dec 24)

[winston]

Singapore’s GIC accelerates US deals as China cools

Sovereign wealth fund with estimated $700bn under management is targeting venture capital and technology companies

Singapore’s sovereign wealth fund GIC has estimated assets exceeding $700bn

by Mercedes Ruehl

Source: Financial Times

https://www.ft.com/content/0835eac9-ea2 ... 707a2f3b35

[winston]

GIC is seeking to increase its exposure to US-focused funds via venture capital funds and technology companies

GIC's funding in venture capital groups also comes despite a drop in venture capital funding.

GIC’s interest in the US comes in contrast to its investments in China, which have been slowing down.

GIC signed 63 deals that involved US-based private companies in 2022 and 2021, 61.5% higher than the 39 deals that were signed in 2019 and 2018 while making two direct investments in Chinese companies in 2022, down from the 16 deals in 2021.

Source: Phillips

[behappyalways]

MAS proposes to increase deposit insurance coverage to $100,000
https://www.theedgesingapore.com/news/b ... age-100000

[behappyalways]

MAS posts net loss of $30.8 bil for FY2022/FY2023 amid depressed market environment
https://www.theedgesingapore.com/news/r ... nvironment

[behappyalways]

Temasek’s net portfolio value down by 5.2% y-o-y to $382 bil; reports $7.3 bil loss
https://www.theedgesingapore.com/capita ... 3-bil-loss

[winston]

Singapore state investor Temasek posts worst returns since 2016

by Clement Tan

KEY POINTS

Temasek posted a 5.07% decline in its one-year total shareholder return in Singapore dollars.

Net portfolio value came in at S$382 billion in 2023, compared to $403 billion in 2022.
'
Confluence of multiple global events, not seen in decades, raised cost of capital and weighed on capital flows.

Source: CNBC

https://www.cnbc.com/2023/07/11/singapo ... eport.html

[winston]

GIC Posts Worst Five-Year Return Since 2016 as Global Economy Slows

by David Ramli and Low De Wei

Runs $690 billion, posted annualized nominal returns of 3.7% for the five years ending March 31, the lowest in seven years.

The consequences of the policy tightening are still being felt in the economy and markets.

Looking ahead, banking stress and tighter lending conditions are among factors that have increased the risk of recession in core advanced economies, the firm warned, while China’s recovery is driven by services and consumption rather than investment as in the past.

GIC has 17% of its portfolio invested in private equity but with the cost of borrowing going up, the business of lending money to companies - as a big opportunity.

Its real estate allocation rose to 13% as of March 2023 compared to 7% three years ago.

We thought it would be best to be able to put assets into areas such as infrastructure or real estate where you do get some rental increases if you’re in the right segments.

Investments in Asia excluding Japan - a metric that includes its assets in China - dipped slightly to 23% of the total portfolio as of March 2023 compared to a year earlier, while US investments rose to 38%.

Source: Bloomberg

https://finance.yahoo.com/news/gic-post ... 00844.html

[winston]

GIC sees buy opportunities, long-term returns despite inflation risks

US Treasuries and bonds are now yielding more after several rounds of interest rate hikes by the US Federal Reserve in efforts to cool inflation, and “that is a positive thing for investors”.

There are also opportunities to invest in projects related to energy transition.

We need US$4.3 trillion a year to fund the energy transition. Last year, only US$1.8 trillion was deployed.

GIC is a big investor in infrastructure, including for renewable energy, injecting around US$20bil a year in the sector.

Despite some US$160bil in capital outflows from China over the last six consecutive quarters, GIC is also exploring opportunities to invest in China.

GIC maintains a diversified portfolio spanning six core asset classes, each with a different risk and return profile.

These include developed and emerging market equities, nominal bonds and cash, inflation-linked bonds, real estate and private equity.

Source: Straits Times

https://www.thestar.com.my/business/bus ... tion-risks

[behappyalways]

At that time, the deal valued Eu Yan Sang at US$196 million


Hillhouse, Mitsui among bidders for Eu Yan Sang in US$700 million deal: Reuters
https://www.theedgesingapore.com/news/m ... al-reuters

[behappyalways]

Temasek's partial divestment in India's Medanta generates IRR of 26%
https://www.theedgesingapore.com/news/g ... tes-irr-26