Singapore’s sovereign fund GIC posts weakest investment gains in four years, cites China woes and geopolitical tensions as challenges
The fund manages $770 billion assets according to estimates from the Sovereign Wealth Fund Institute, and is one of the three entities that manage Singapore’s reserves. “Moreover, medium-term return prospects remain low, and risk-reward less favourable, given elevated valuations across many risk assets, particularly in developed markets,” the firm said.
The U.K and Eurozone rose to 5 per cent and 10 per cent from 4 per cent and 9 per cent respectively, while exposure to Japan alone and to Asia, excluding Japan, dropped to 4 per cent and 22 per cent from 6 per cent and 23 per cent respectively, its report showed. It does not disclose China’s share. Temasek said earlier this month that its net portfolio value had returned to growth with a 1.8 per cent gain, adding that profits from investments in the U.S. and India helped compensate for underperformance in China.