GIC flags lower long-term returns in tough investment climate

SINGAPORE (July 13): Singapore sovereign wealth fund GIC has trimmed its exposure to developed market equities such as US stocks over the past year on high valuations, and cautioned it expects lower long-term returns in an uncertain investment climate.

GIC - ranked as the world's No.8 sovereign investor with US$390 billion ($532 billion) worth of assets according to Sovereign Wealth Fund Institute - flagged its preference for "reasonably priced" emerging market stocks while highlighting broader global risks of monetary policy tightening and trade frictions.

"This time around we in fact have reduced some equities and we have raised some cash to make sure that we can get through this environment well and have the ability to take advantage of any dislocations, which we expect to happen down the road," CEO Lim Chow Kiat told Reuters in an interview on Thursday.

---

Related Stories

• Where investment chiefs are putting their cash in unstable 2024
• Temasek disposes of 74.3 mil Keppel REIT units at 91.38 cents (update)
• Temasek and KKR join Silver Lake’s TEG loan deal

---