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GIC cautious in light of challenging investment outlook; returns for 20-year period at 3.4%

Jeffrey Tan
Jeffrey Tan7/5/2019 08:00 AM GMT+08  • 5 min read
GIC cautious in light of challenging investment outlook; returns for 20-year period at 3.4%
SINGAPORE (July 8): Singapore’s sovereign wealth fund GIC is treading carefully as the investment outlook turns more challenging. This comes as high valuations, slowing global growth and significant uncertainties could potentially lead to lower returns
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SINGAPORE (July 8): Singapore’s sovereign wealth fund GIC is treading carefully as the investment outlook turns more challenging. This comes as high valuations, slowing global growth and significant uncertainties could potentially lead to lower returns for both the GIC Portfolio and the Reference Portfolio, the SWF says in its 2018/19 annual report released on July 2.

Certainly, the pressure is on GIC to generate attractive and sustainable returns after it received an injection of funds totalling $45 billion from the Monetary Authority of Singapore in May. The funds are derived from MAS’ official foreign reserves, which the central bank had deemed as excess OFR that could be put to better use under GIC.

Among the main reasons for GIC’s cautious stance is the unresolved trade conflict between the US and China. While both sides have recently avoided an escalation of the conflict, a trade deal remains to be signed.

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