SWFs TURN CAUTIOUS: WHAT NEXT
GIC (SINGAPORE)
Government of Singapore Investment Corp which manages assets of over $100 billion globally, in a sign of extreme caution has boosted its cash levels to those exceeding the 2008 global financial crisis as it scales down its holdings of equities and bonds particulary Europe. Cash allocation almost quadrupled to 11 percent of its portfolio in the year ended March from 3 percent a year earlier. Stock holding fell to 45 percent from 49 percent as it pared equities in developed markets, while bonds dropped to 17 percent from 22 percent.
CUTTING EXPOSURE TO EUROPE
GIC is reducing its investments as the MSCI World Index (MXWO) posted its biggest slump since the 2008 global financial crisis and market volatility reached the highest level in more than two years.
GIC’s holdings in Europe fell to 26 percent from 28 percent, with those in the U.K. unchanged at 9. Within Europe, GIC’s assets in Portugal, Ireland, Italy, Greece and Spain made up 1.4 percent of its portfolio, mainly held in real estate and stocks in Italy and Spain. Assets in the Americas remain unchanged at 42 percent, with 33 percent of the total portfolio in the U.S., it said. GIC also raised its allocation to Asia to 29 percent from 27 percent. Holdings in so-called alternative assets increased to 27 percent from 26 percent, it said, with a gain in private equity and infrastructure investments.
CIC (CHINA)
China Investment Corp., which posted a 4.3% loss on its global portfolio last year, has significantly reduced its holdings of public securities and trimmed its investment philosophy thereby pushing into longer-term investments as the $482 billion sovereign-wealth fund seeks to shield itself from market volatility. CIC said in its 2011 annual report released last week that public equities made up 25% of its global portfolio at the end of last year, down from 48% at the end of 2010. Long-term assets—which include direct investments in nonpublic companies and private equity—and hedge funds together accounted for 43% of its portfolio. Though it disclosed few details of its moves, it said it made direct investments in oil and gas, mining and infrastructure to shift toward "lower-risk assets." Among other assets, CIC said Wednesday that 21% of its overseas holdings were in fixed-income securities, with 11% in cash.
Source: WSJ and Bloomberg
GIC (SINGAPORE)
Government of Singapore Investment Corp which manages assets of over $100 billion globally, in a sign of extreme caution has boosted its cash levels to those exceeding the 2008 global financial crisis as it scales down its holdings of equities and bonds particulary Europe. Cash allocation almost quadrupled to 11 percent of its portfolio in the year ended March from 3 percent a year earlier. Stock holding fell to 45 percent from 49 percent as it pared equities in developed markets, while bonds dropped to 17 percent from 22 percent.
CUTTING EXPOSURE TO EUROPE
GIC is reducing its investments as the MSCI World Index (MXWO) posted its biggest slump since the 2008 global financial crisis and market volatility reached the highest level in more than two years.
GIC’s holdings in Europe fell to 26 percent from 28 percent, with those in the U.K. unchanged at 9. Within Europe, GIC’s assets in Portugal, Ireland, Italy, Greece and Spain made up 1.4 percent of its portfolio, mainly held in real estate and stocks in Italy and Spain. Assets in the Americas remain unchanged at 42 percent, with 33 percent of the total portfolio in the U.S., it said. GIC also raised its allocation to Asia to 29 percent from 27 percent. Holdings in so-called alternative assets increased to 27 percent from 26 percent, it said, with a gain in private equity and infrastructure investments.
CIC (CHINA)
China Investment Corp., which posted a 4.3% loss on its global portfolio last year, has significantly reduced its holdings of public securities and trimmed its investment philosophy thereby pushing into longer-term investments as the $482 billion sovereign-wealth fund seeks to shield itself from market volatility. CIC said in its 2011 annual report released last week that public equities made up 25% of its global portfolio at the end of last year, down from 48% at the end of 2010. Long-term assets—which include direct investments in nonpublic companies and private equity—and hedge funds together accounted for 43% of its portfolio. Though it disclosed few details of its moves, it said it made direct investments in oil and gas, mining and infrastructure to shift toward "lower-risk assets." Among other assets, CIC said Wednesday that 21% of its overseas holdings were in fixed-income securities, with 11% in cash.
Source: WSJ and Bloomberg
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