GIC: Level of disclosure rising over the years

The Straits Times, 28 Oct 2011

THE Government of Singapore Investment Corporation (GIC) has been disclosing more of its investments in recent years.

However, divulging everything is not in the interests of Singapore, said GIC chief investment officer Ng Kok Song.

Mr Ng told Bloomberg yesterday that there has been more disclosure with each report put out over the past four years.

'We want to share as much as we can, subject to our competitive position as an investor not being jeopardised.'

He was responding to Prime Minister Lee Hsien Loong's remarks last week about more openness and communication from the Government on policy decisions. Mr Lee said then that the Government will also share more information, noting that it is publishing more information about investments by GIC.

Since 2008, GIC has been issuing regular annual reports in which it reveals how its investments have been doing on a long-term basis as well as the broad areas in which the firm is invested.

The latest annual report shows that the 20-year annual real rate of return, after taking into account global inflation, rose from 3.8 per cent to 3.9 per cent for the year ended March 31.

It also said GIC, which manages more than US$100 billion (S$126 billion) of Singapore's reserves, invested 51 per cent of its portfolio in public equities and 20 per cent in fixed income such as bonds.

Another 25 per cent is invested in real estate, private equity, absolute return strategies and natural resources. The last 4 per cent of its portfolio is in cash.

But GIC does not disclose the exact size of its portfolio nor does it fully detail which companies it has stakes in.

Mr Ng said: 'The people of Singapore expect us to manage their money in a way which protects their interests. Sometimes protection of interest may mean that we cannot divulge everything.

'We understand the desire of the public to know. So I think it's a question of finding the appropriate amount of disclosure. Every successive report that we've put out has given more information than previously.'