By Muskan Arora
Singapore’s $936B sovereign wealth fund, GIC, has inked a strategic partnership with MasOrange and Vodafone Spain to establish a cutting-edge fiber optic company, FibreCo, in Spain.
Under the deal, MasOrange will hold a 58% stake in FibreCo, Vodafone Spain will hold 17%, and GIC 25%.
“Spain is among the most advanced European countries in fiber-to-the-home (FTTH) rollout,” said Boon Chin Hau, chief investment officer for infrastructure at GIC. “Yet, significant growth potential remains in fixed broadband penetration. FibreCo is designed to deliver best-in-class service quality to customers while providing investors with a robust core infrastructure asset.”
The new venture aims to accelerate Spain’s digital connectivity by building a leading FTTH network, driving operational efficiencies and laying the groundwork for future network and service enhancements, according to a GIC press release.
As part of the transaction, MasOrange will acquire Conexus Networks — the wholesale FTTH access provider in northern Spain — and contribute it to FibreCo. The network will leverage energy-efficient FTTH technology, significantly reducing energy consumption.
Growth, AI, and shifting strategies
GIC’s annual report, released Friday, highlighted how Europe’s infrastructure policies are evolving amid rising geopolitical tensions and global economic shifts.
“Policymakers are responding to the increasing threat from U.S. policies,” the report said, citing Germany’s new fiscal infrastructure plans as a catalyst for growth and improved medium-term outlooks.
In response to the booming AI sector, GIC has rebalanced its portfolio — boosting investments in the Americas while trimming exposure in Asia-Pacific. North and South America now account for 49% of the portfolio, up from 44% last year, while Asia-Pacific exposure fell to 24% from 28%. Exposure to the Middle East and Africa remains steady.
This shift reflects GIC’s cautious stance on a potential economic slowdown in the latter half of the year amid rising inflation and geopolitical uncertainties.
Over the past year, GIC has rolled out a three-pillar AI strategy: integrating AI into operations for greater efficiency, fostering agile innovation within teams, and developing AI-powered decision-support bots.
Lim Chow Kait, GIC’s, chief executive officer, explained in his letter accompanying the annual report that the fund is leveraging AI in internal audits to detect anomalies across vast datasets — both structured and unstructured — automating risk analysis and prioritization.
Moreover, AI is increasingly embedded in GIC’s investment processes. The fund is developing prototypes like a virtual investment committee member that draws on GIC’s institutional knowledge to challenge assumptions, pose probing questions, and surface contrarian insights in real time.
The annual report also noted GIC’s increased allocation to U.S. equities, which remains the fund’s largest market by capital deployment.
“The forces of change have only intensified and are much harder to prepare for,” Chow Kait said. “2025 may be a turning point — in markets and in history.”
GIC disclosed an annualized real return of 3.8% for the 20-year period ending March 31, slightly down from 3.9% the previous year. The nominal return over the same period stood at 5.7%.
