20150212 If our CPF has not been lost, why was market value of GIC’s listed securities only US$47 billion?

(This post contains data provided by a financial data vendor, information which GIC has refused to disclose to CPF members for decades. Those who have an interest in how GIC invests with our CPF could scrutinise individual investments and share their findings with netizens. Ultimately, what all CPF members want is a fair deal and transparency from GIC.)

The PAP government has refused to disclose relevant information on investments using our CPF, citing a threat to our national security. It is strange because information such as GIC’s listed portfolio in September 2012, May 2013, etc is already available online. Financial data vendors have already compiled such data for decades. Edited version of 2012 and 2013.

In September 2012, GIC’s listed securities portfolio had a market value of US$41.4 billion which increased by US$5.6 billion to US$47 billion in May 2013.

However, its 2 ‘heaviest weight’ investment, Citigroup and UBS, contributed US$3.3 billion or 59% to the increase of US$5.6 billion. Considering GIC had about 280 investments in its portfolio, the other 278 investments contributed to only US$2.3 billion increase which was of course totally disproportionate to its holding.

Top ten investment in GIC listed securities portfolio in Sep 2012 (market value in US$ (million)

. SECURITY TICKER SHARES MKT VAL
1 CITIGROUP INC C US 112,095,403 3800
2 UBS AG-REG UBSN VX 245,895,789 3180
3 ROYAL DUTCH SHELL PLC-A SHS RDSA LN 37,399,804 1360
4 VODAFONE GROUP PLC VOD LN 358,104,603 1020
5 BP PLC BP/ LN 141,819,944 1010
6 TAIWAN SEMICONDUCTOR MANUFA 2330 TT 340,835,129 999
7 CHINA PACIFIC INSURANCE GR-H 2601 HK 294,575,000 872
8 GLENCORE FINANCE EUROPE GLENLN 5 12/ 600,000 746
9 GPT GROUP GPT AU 205,875,282 740
10 CHINA PETROLEUM & CHEMICAL-H 386 HK 803,053,154 738

Top ten investment in GIC listed securities portfolio in May 2013

. SECURITY TICKER SHARES MKT VAL
1 CITIGROUP INC C US 112,095,403 5750
2 UBS AG-REG UBSN VX 245,633,960 4510
3 ROYAL DUTCH SHELL PLC-A SHS RDSA LN 39,669,849 1350
4 TAIWAN SEMICONDUCTOR MANUFA 2330 TT 340,835,129 1310
5 BP PLC BP/ LN 150,058,919 1070
6 CHINA PACIFIC INSURANCE GR-H 2601 HK 293,830,400 1060
7 JAPAN TOBACCO INC 2914 JP 24,508,000 915
8 HSBC HOLDINGS PLC HSBA LN 77,587,842 896
9 CHINA PETROLEUM & CHEMICAL-H 386 HK 794,152,154 880
10 BG GROUP PLC BG/ LN 45,954,406 860

According to GIC, 45% of its portfolio was invested in public equities in 2012 and this was almost unchanged at 46% in 2013. The balance of 55% was invested in bonds, private equity, real estate or held in cash.

The Sovereign Wealth Fund estimated GIC’s portfolio to be US$247.5 billion at the end of 2012. According to Reuters, “most analysts estimate the fund’s assets are around $300 billion” a year earlier in 2011. (I will use the figure of 45% for public equities)

Assuming Reuters’ figure of “around US$300 billion”, the market value of GIC’s listed portfolio should be US$135 billion (45% X US$300 billion). Using SWF’s figure of US$247.5 billion, we have a lower figure of about US$111 billion.

I hope GIC could clarify the following:

1 There was a difference of between US$64 billion (US$111 billion – US$47 billion) and US$84 billion (US$131 billion – US$47 billion). Was there an error?
2 If indeed there was an error, could GIC publish the correct list of all its public equities?
2 If there was no error, where did GIC invest the difference of more than US$64 billion?

Public perception of our CPF being lost in risky investments by GIC has been increasing. If our CPF has not been lost, why was the market value of GIC’s listed securities only a fraction of what it should have been?

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