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21 Mar 2023  (832 Views) 
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Singapore


Expense ratios of sovereign wealth funds
I obtained these figures from ChatGPT. The ratio of management expense is about 0.06% of investment funds for Norway and Saudi Arabia.

The ratios are much higher for GIC and Temasek, being 0.17% for GIC and 1.9% for Temasek.

I do not know if these ratios are strictly comparable, but they appear to be high for GIC and excessively high for Temasek.

Singapore GIC:
According to its latest annual report for the financial year ended 31 March 2021, GIC had total assets under management of SGD 551 billion (approximately USD 410 billion) and total expenses of SGD 882 million (approximately USD 654 million), including management fees and other operating expenses. The ratio of GIC's management expenses to its total assets under management is approximately 0.17%.

Singapore Temasek:
According to its latest annual report for the financial year ended 31 March 2021, Temasek had a net portfolio value of SGD 381 billion (approximately USD 284 billion) and operating expenses of SGD 7.3 billion (approximately USD 5.4 billion), including management fees and other expenses. The ratio of Temasek's operating expenses to its net portfolio value is approximately 1.9%.

Norway:
As of 31 December 2020, the Government Pension Fund Global (GPFG) managed by Norges Bank Investment Management (NBIM) had assets under management of NOK 11,079 billion (approximately USD 1.3 trillion). According to NBIM's annual report, the total management costs of GPFG for 2020 were NOK 4.2 billion (approximately USD 495 million), equivalent to 0.04% of the fund's assets under management.

Saudi Arabia:
The Public Investment Fund (PIF) of Saudi Arabia had total assets under management of SAR 1.97 trillion (approximately USD 525 billion) as of 31 December 2020, according to its latest available annual report. PIF's management expenses for 2020 were SAR 1.1 billion (approximately USD 293 million), equivalent to 0.06% of its assets under management.

Tan Kin Lian


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