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GIC Posts Worst Five-Year Return Since 2016 as Global Economy Slows​

• CEO Lim Chow Kiat warns markets “not out of the woods yet”
• Sovereign wealth fund is among world’s biggest investors

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Singapore Sovereign Wealth Fund GIC Posts Worst 5-Year Return Since 2016
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WATCH: Singapore’s GIC Pte reported its worst five-year returns since 2016. David Ramli reports.Source: Bloomberg
By David Ramli and Low De Wei
July 25, 2023 at 5:00 PM EDT
Singapore sovereign wealth fund GIC Pte reported its worst five-year returns since 2016, citing the slowing global economy as it warned the consequences of rising interest rates are yet to fully play out.

The firm, which the Sovereign Wealth Fund Institute has estimated runs $690 billion, posted annualized nominal returns of 3.7% for the five years ending March 31, the lowest in seven years. Its 20-year real return hit an eight-year high of 4.6% after moving past 2003, a fiscal year when markets slumped. The fund doesn’t publish one-year results or its assets under management.
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[k1976]

https://www.ft.com/content/99e74b43-2e5a-457e-b68a-2a837ea821d8

Singapore’s GIC warns of the end of an era for private equity Sovereign fund says high valuations, lower leverage costs and low interest rates are ‘not coming back any time soon’

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MENU Financial Times Sign In Make sense of it all. Become an FT subscriber. Pay annually and save 20% Subscribe now Sovereign wealth fundsAdd to myFT Singapore’s GIC warns of the end of an era for private equity Sovereign fund says high valuations, lower leverage costs and low interest rates are ‘not coming back any time soon’ GIC, the Singapore government’s investment corporation, has assets of more the $700bn © FT montage/NurPhoto via Getty Images Singapore’s GIC warns of the end of an era for private equity on twitter (opens in a new window) Singapore’s GIC warns of the end of an era for private equity on facebook (opens in a new window)


Singapore’s GIC warns of the end of an era for private equity on linkedin (opens in a new window) Singapore’s GIC warns of the end of an era for private equity on whatsapp (opens in a new window) Save Mercedes Ruehl in London 14 HOURS AGO 36 Print this page


Singapore’s GIC, one of the world’s largest institutional investors, has warned that the golden age for private equity firms has “come to an end”.

The sovereign wealth fund, which has estimated assets of more than $700bn and is one of the largest backers of buyout funds, said a new era of higher interest rates and volatility had created challenges.

“Many of the things that were tailwinds for the private equity industry have come to an end . . . and I don’t think they are coming back any time soon,” said chief investment officer Jeffrey Jaensubhakij, citing the lucrative mix of high valuations, lower leverage costs and low interest rates of the past few years.

“Today, unfortunately, there’s both a supply and demand problem,” he added, referring to the number of assets available at a reasonable price and the number of investors wanting to put money into the asset class.

Speaking ahead of its annual results on Wednesday, GIC told the Financial Times that opportunities were available in the private market and it was allocating money towards logistics, infrastructure and other inflation-insulated assets.

 

[k1976]

GIC said the fundraising drought in private markets was an area of opportunity.

Many global private equity firms are facing pressure from their investors — who cannot allocate to new funds until they get some cash back — to sell parts of their portfolio “at reasonable prices”, Jaensubhakij said. Some investors have also “overcommitted” to private markets and are trying to offload stakes with up to 20 per cent discounts, he added.

“We’ve had a couple of transactions recently of a reasonably large size.” GIC said the overall outlook over the next 12 months continued to be challenging, with global interest rates remaining elevated, the chances of a recession relatively high, and “chronic geopolitical risks”.

 

[k1976]

https://www.reuters.com/business/fi...after-scoring-8-year-high-returns-2023-07-25/

Tiongkok give GIC best of best return De woh

 

[k1976]

SINGAPORE, July 26 (Reuters) - Singapore sovereign wealth fund GIC (GIC.UL), one of the world's biggest investors, plans to continue investing in China despite geo-political tensions after chalking up its best showing in eight years in the financial year ended March.

Its group chief investment officer Jeffrey Jaensubhakij told Reuters GIC was keen to invest in Chinese companies that do business within China and do not export to the United States.

 

[batman1]

The GIC management need to be rewarded with high salary increments and bonuses.

 

[k1976]

BIG ON INFRASTRUCTURE, PRIVATE CREDIT​

GIC invests $10 billion to $20 billion a year in infrastructure assets, a portfolio that has grown five-fold since 2016, as the investment provides diversification and steady, inflation-protected returns, said Ang Eng Seng, GIC's Chief Investment Officer for Infrastructure.

GIC is also looking to allocate more capital to private credit, a nascent asset class which has delivered strong returns in a higher interest rate environment with tighter liquidity from banks, Jaensubhakij said.

 

[k1976]

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Singapore's GIC bets on China after scoring 8-year-high returns​

By Yantoultra Ngui and Xinghui Kok
July 26, 20235:02 AM GMT+8Updated 14 hours ago

A signage of Singapore's sovereign wealth fund GIC is pictured at their office in Singapore July 13, 2023. REUTERS/Edgar Su/File Photo

• Summary
• Companies

• GIC chalks up best investment showing in eight years
• Wealth fund remains committed to investing in China
• GIC to increase allocation to private credit

SINGAPORE, July 26 (Reuters) - Singapore sovereign wealth fund GIC (GIC.UL), one of the world's biggest investors, plans to continue investing in China despite geo-political tensions after chalking up its best showing in eight years in the financial year ended March.
Its group chief investment officer Jeffrey Jaensubhakij told Reuters GIC was keen to invest in Chinese companies that do business within China and do not export to the United States.

"There are some 'China for China' type of investments that still make sense," he said.
GIC's annualised 20-year real rate of return - its main performance gauge - for the year ended March 2023 stood at 4.6%, the highest since 2015, according to its annual report released on Wednesday. This compares with 4.2% over the same period a year ago.
The group, which counts e-commerce giant Alibaba (9988.HK) and fintech affiliate Ant Group among its Chinese investments, said its diversified portfolio and cautious investment stance helped cushion its portfolio's performance from the market correction in 2022.
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GIC said exposure to China was important for a diversified portfolio.
"It is a place that we believe that global investors which hope to build a diversified portfolio must have exposure or presence," GIC's Chief Executive Officer Lim Chow Kiat said.
GIC's continued commitment to China comes as Beijing scrambles to re-energise a flagging post-pandemic recovery.
Chinese shares rose this week after its leaders pledged to step up support for the economy.
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Financial regulators told major global investors in a rare meeting last Friday that China was prioritising economic growth and would stay open to foreign capital, sources familiar with the matter said.
GIC said China now has more regulatory clarity and business confidence is returning.
Its views follow that of smaller investment firm Temasek which earlier this month offered a positive outlook on China's tech sector.
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BIG ON INFRASTRUCTURE, PRIVATE CREDIT​

GIC invests $10 billion to $20 billion a year in infrastructure assets, a portfolio that has grown five-fold since 2016, as the investment provides diversification and steady, inflation-protected returns, said Ang Eng Seng, GIC's Chief Investment Officer for Infrastructure.
GIC is also looking to allocate more capital to private credit, a nascent asset class which has delivered strong returns in a higher interest rate environment with tighter liquidity from banks, Jaensubhakij said.
Advertisement · Scroll to continue

GIC is the world's seventh-biggest sovereign investor with $690 billion in total assets, according to research firm Sovereign Wealth Fund Institute.

The U.S is GIC's biggest market, making up 38% of its portfolio, while Asia excluding Japan contributed 23%.

The share of emerging market equities in GIC's portfolio rose to 17% by end of March from 16% a year earlier.
Real estate rose to 13% from 10%, while nominal bonds and cash dropped to 34% from 37%.

GIC's Lim warned of continued inflation pressure that has caused bond markets to plunge over the past year.

"The underlying inflation driver has not completely gone away," he said. "There is still pressure for inflation rates to be at elevated levels above whatever the central banks desire."

Reporting by Yantoultra Ngui and Xinghui Kok in Singapore; additional reporting by Xie Yu and Julie Zhu; editing by Kane Wu and Christina Fincher

 

[k1976]

https://www.straitstimes.com/singap...-on-his-firm-his-motivations-and-the-reserves

Cik Ng is best knowledge on financial investment world... No worries and rest assured

 

[laksaboy]

Ownself check ownself and betting on the wrong horse all the time.

 

[millim6868]

Lol, it's like gamble with other ppl money, if these so call elites use their own money to invest ,all already bankrupt, 60% really kum lan ,

 

[bobby]

That’s why we need Cock Song to be prez….

 

[Loofydralb]

Say bye bye to your CPF.
Either your contribution rates go up or you can only withdraw later, in lesser amounts.

Thank you to Madame BUY HI SELL LOW.

 

[k1976]

Say bye bye to your CPF.
Either your contribution rates go up or you can only withdraw later, in lesser amounts.

Thank you to Madame BUY HI SELL LOW.

No lah... You son or grand son will use it on your behalf... No worries.