GIC

2022 - 7 - 27

GIC increases investments in inflation-resilient assets as 20-year ... (CNA)

Singapore sovereign wealth fund GIC says its diversified portfolio and cautious investment stance have helped to cushion its performance from the market ...

For example, the latter will continue to disrupt jobs and businesses, but it can also be a source of economic growth and investment opportunities. “The classic example is that you can tokenise an asset and allow it to be transacted without using any intermediaries. It is the Government’s fund manager. In the near term, the world will have to contend with further monetary policy tightening by central banks to combat persistently high inflation, alongside supply disruptions and fading fiscal stimulus. The latter has since led to rises in global interest rates as central banks tighten monetary policies. For instance, the figure for FY2021/22 represented the average annual return of GIC’s portfolio between April 2002 and March 2022, with global inflation taken into account.

GIC posts stable return above inflation (The Straits Times)

But investors face challenging environment, market returns ahead likely to be low, it says. Read more at straitstimes.com.

Correction note: An earlier version of this story said GIC is one of the three entities charged with managing Singapore's reserves. It is seeking to move away from nominal bonds, whose yields are under pressure. This has been corrected to say that GIC is one of the three entities that contributes to Singapore's reserves. This means that every $100 invested with GIC in 2003 would have grown to $228 today, after taking inflation into account. Mr Lim said the fund's focus is to make sure that it continues to do as well as it can to generate a return so that the Government has resources for its Budget. GIC, which is one of the three entities that contributes to Singapore's reserves, recorded an annualised rolling 20-year real rate of return of 4.2 per cent for the period ending March 31, after stripping away inflation.

Singapore's GIC: downturn in tech, crypto funding 'a good thing' (Nikkei Asia)

SINGAPORE -- The global slowdown in startup funding will allow investors to find more promising companies with stronger business models, accordin.

Singapore's GIC Says 60/40 Portfolio Starting to See Value (Bloomberg)

The strategy of mixing 60% stocks with 40% bonds, a mainstay at global pension funds for decades, has come under fire in recent months after debt prices plunged ...

Singapore's GIC flags market risks; inflation here to stay (Reuters)

Singapore sovereign wealth fund GIC, one of the world's biggest investors, is bracing for muted investment returns and expects little respite from runaway ...

It means that we have probably raised some dry powder to be available." Register now for FREE unlimited access to Reuters.com "In terms of pace and intensity, it shouldn't get any worse. The United States was its biggest market, making up 37% of its portfolio, up from 34% a year ago. Register now for FREE unlimited access to Reuters.com Register now for FREE unlimited access to Reuters.com

GIC's 20-year annualised return at 4.2%; rebalances portfolio to ... (The Business Times)

GIC reported a 4.2 per cent annualised rolling 20-year real rate of return for the latest period ended Mar 31, and is rebalancing its portfolio — by shoring ...

GIC's real annualised returns over 20-year period fall marginally to ... (TODAY)

SINGAPORE — Sovereign wealth fund GIC has reported an average annual real return on its investment portfolio of 4.2 per cent, over and above the global ...

“We have said for a number of years that the prospective returns going forward were likely to be low,” said Mr Lim. “We have said for a number of years that the prospective returns going forward were likely to be low.GIC chief executive officer Lim Chow Kiat” He said that as real assets can be linked to the consumer price index (CPI) — which measures the average change in prices paid by consumers over a period of time for a basket of goods and services — it could mean “automatically” getting a rental increase when inflation goes up, in the case of a CPI-linked contract for example. In spite of these challenges, Mr Lim said GIC was “able to deliver good, stable returns over and above global inflation”. GIC regards the 20-year time-frame as the key measure of its performance, as this irons out bumps along the way and is in line with its mandate to preserve and enhance the international purchasing power of the reserves under its management. - In spite of these challenges, Mr Lim said GIC was “able to deliver good, stable returns over and above global inflation”

Singapore's sovereign wealth fund warns of 'profound uncertainties ... (CNBC)

Singapore's sovereign wealth fund GIC reported stable returns for the year but warned of uncertainties amid inflation worries, pandemic risks and ...

"At the same time, the clock for the climate crisis is ticking, pandemic risk lingers on, and geopolitical conflicts and domestic political schisms are growing. - The fund's portfolio recorded an annualized dollar nominal rate of return of 7% over a 20-year period ending March 31, 2022, the fund said in its annual report published on Wednesday. - "Years of concerns over deflation have turned into worries of elevated inflation, forcing economic policymakers to reverse stimulus policies," said Chief Executive Lim Chow Kiat in the report.

For Singapore's GIC, Net-Zero Targets Aren't Helpful in Climate ... (Bloomberg)

Lim said his fund prefers to tackle climate change by engaging with portfolio companies as they transition to more sustainable practices, recognizing that the ...

Singapore's GIC braces itself for inflation and warns of hard year ... (Financial Times)

The warning from GIC, whose assets are estimated by analysts to exceed $700bn, reflects the potential impact rising prices could have on institutional investors ...

GIC sets up office to better roll out sustainability push (The Straits Times)

Office will drive sustainability integration across GIC's investments and corporate processes. Read more at straitstimes.com.

She joined GIC in 2005. "We will be bringing together existing resources who are working on sustainability, and also to recruit more dedicated sustainability professionals. "We divest as a last resort," GIC said in its annual report, adding that it ultimately seeks to speed up decarbonisation of the real economy.

Singapore's GIC Ups Real Estate Allocation to 10% - Mingtiandi (Mingtiandi)

Singapore's GIC increased its allocation to real estate assets to 10 percent during its most recent fiscal year.

“Today, with continued low interest rates, the same hypothetical portfolio is likely to earn just enough to beat inflation.” The subsequent 40-year run saw inflation and interest rates in secular decline. “The investment landscape is shifting rapidly,” Lim said. For strategic reasons, GIC does not disclose its fund size; the Sovereign Wealth Fund Institute estimates the fund’s assets under management at $690 billion. Next on the list was private equity with 17 percent, up from 15 percent. Singapore’s GIC increased its allocation to real estate assets to 10 percent during its most recent fiscal year, from 8 percent a year earlier, as the sovereign wealth fund frets over inflation and growing uncertainty.

GIC's Real Annualised 20-Year Return Is 4.2% Per Year. Here's ... (DollarsAndSense.sg)

GIC is one of the 3 avenues Singapore invests for the future. Here's what investors can learn from GIC's investment portfolio.

The long-term nature of GIC investments also pairs well with sustainable investing as the sustainable solutions may take a long time (and scale) before reaching their full potential. Investing in the long term also means looking beyond current market performance to invest in the future. According to GIC, “even though the rolling 20-year real rate of return is intended to measure returns over the long term, it can still reflect a significant cyclical element. Despite the recession fears, this is still a healthy return compared to the two low points of 2.7% in 2020 and 2.6% in 2009. Performance across regions, countries and sectors has also differed due to the different pace and magnitude of recovery and correction. While the intent of central banks’ monetary tightening is to bring down inflation while avoiding recession, this may not come to fruition in the current macro environment.

GIC

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