Wednesday, January 13, 2021-10:23 AM
SINGAPORE’S GIC maintained its position as the most active state-owned investor (SOI) in 2020 for the second consecutive year, based on reports from Global SWF, a data platform for tracking sovereign wealth funds and public pension funds. ..
Against the backdrop of last year’s Covid-19 pandemic, GIC has deployed US $ 17.7 billion in 65 transactions. Slightly less than the US $ 24 billion deployed in 2019.
The second closest is the Canadian Public Pension Fund CPP, which earned US $ 15 billion in 33 investments, followed by the Canadian fund CDPQ and UAE investment firm Mubadala. Temasek Holdings is the fifth most active SOI, with 52 investments of US $ 11.3 billion.
Overall, SOI was worth S $ 162.3 billion in a total of 503 transactions last year, down from S $ 199.4 billion in 2019 with 499 transactions.
The report investigated 438 SOI. These included the Sovereign Wealth Fund (SWF) and the Public Pension Fund (PPF), which jointly manage assets in excess of US $ 27 trillion. The report states that the capital invested by SOI was “significantly reduced” in 2020.
“At the peak of the pandemic, there were very few deals due to logistics issues. Investment executives were unable to get the Commission to approve the proposed acquisition without a physical meeting. Later this year. Needed special attention, in a SWF that could face a capital request to make up for the budget deficit. “
Both GIC and Temasek are among the top 25 SOIs. GIC is ranked 10th in assets under management (AUM) worth US $ 488 billion. Temasek ranks 24th and holds AUM worth US $ 215 billion.
Separately, the report highlights the technology sector as the “industry of the year” in 2020, with one-fifth of its investment in technology, media and telecommunications (TMT) last year.
“SOI seeks to gain exposure to potentially high returns resulting from technological change. During 2020, Covid-19 will accelerate this rapid transition and provide private equity opportunities for technology and innovation. We’ve boosted it, “the report said.
However, he pointed out that there was a rapid shift from fintech to information technology, and then to life sciences and biotechnology.
Temasek has emerged as a top technology investor, investing approximately US $ 2.3 billion, especially in the e-commerce and life sciences technology sector. With US $ 2.2 billion, GIC is the second largest direct investor and a leader in SOI investment in data centers and the cloud.
The Global SWF also highlighted four key trends driving change in technology investment.
* Infrastructure in the digital age.
* Artificial intelligence and educational technology;
* Allocations to life sciences and biotechnology companies caused by health and climate crises.And
* It’s a fast-growing emerging market in the e-commerce space, but be careful when investing in FinTech.
In the next decade, the fund will continue its trend over the last 12 years in terms of investment activity, “for the next 10 years, we will continue to allocate more capital to alternatives,” private equity funds and debt said. SOI is the most popular option as it can be a direct lender. “
However, the Global SWF said, “Regardless of the success of the ongoing global vaccine campaign, Covid-19 expects to cast a long shadow. SOI will continue to fund the domestic economy through withdrawal or investment. I’m forced to do it. “