StockTalk(7.26): Singapore's GIC reports strongest annualised real return in 8 years - What does this mean for the investment landscape?
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Singapore's sovereign wealth fund, GIC, reported an annualized rolling 20-year real rate of return of 4.6% for its latest period ended Mar 31. This is up 40 basis points from the previous year and is also the highest in eight years.
Despite the uncertain investment environment since last year, GIC has focused on increasing the portfolio's resilience and finding investment opportunities with stable long-term returns. The portfolio's share of real estate investments grew to 13% from 10% in the previous year, while nominal bonds and cash fell to 34% of the portfolio. GIC also looks at new investments to deliver an excellent risk-adjusted reward as it prepares for different scenarios, including sticky inflation.
GIC's chief economist expects the investment outlook to remain challenging, but the economy's resilience has been remarkable.
With GIC's focus on inflation-resilient assets, do you think other investors will follow suit and adjust their portfolios accordingly?
Based on GIC's strong 20-year real rate of return, do you think this signals a positive economic outlook for the foreseeable future?
Based on GIC's strong 20-year real rate of return, do you think this signals a positive economic outlook for the foreseeable future?
Join us and share your thoughts on today's topic. Please leave a comment below to share your opinion with us. Your feedback is valuable, and we appreciate your participation.
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Elmo123 : Be careful to sail the Perpetual Ship...
Moomoo SGOP :
Based on GIC's strong 20-year real rate of return, do you think this signals a positive economic outlook for the foreseeable future?
Join us and share your thoughts on today's topic. Please leave a comment below to share your opinion with us. Your feedback is valuable, and we appreciate your participation.
Gong Xi Fuck Cai ❤ : Despite challenging investment environment, GIC still going strong haven't die yet, good. Overall investment landscape very beautiful, got flower got coconut trees. In future, can plant more flowers can grow more coconut trees.
ZnWC : I can't help but to compare Singapore's GIC strong annualysed real return with Temasek Holding (TH) posted a $7.3 billion net loss for the 2023FY. Despite the 2 investment companies are set up to invest the Singapore's reserves, they are different in term of corporate governance, investment goals and size. Based on the size of sovereign fund, GIC ranked 5th and TH ranked 13th. Minister made up the board in GIC while TH can make decisions independent on the government.
Yes many investors will follow suit and used GIC portfolio as a guideline to protect their assets. But the strong rate of return may not signal a positive economic outlook is in the near future. On the positive side, it showed that GIC investment strategy is on the right track.
毛遮洞 Elmo123: Be careful with boats for ten thousand years
Kopikarp : GIC's robust performance underscores their adept navigation of a challenging investment landscape. The increase in real estate allocations, coupled with a decrease in nominal bonds and cash, shows an assertive, calculated strategy that other investors could indeed emulate. Although their strong 20-year return could suggest a positive long-term economic outlook, the chief economist's cautious sentiments remind us of the persisting uncertainties. However, the strategic diversification towards inflation-resilient assets, such as real estate, signals a proactive approach to mitigate inflationary risks and thus, holds valuable lessons for investors worldwide.
zoharrr : wow~~