SINGAPORE: In trying to lower risks, Singapore\u2019s sovereign wealth fund GIC ended up missing out on some investment returns in recent years, Senior Minister of State for Finance Jeffrey Siow said in parliament on Monday (Jan 12).<\/p>\n
But he said the decision to de-risk was a \u201cmatter of judgment\u201d, and that the fund has met the government\u2019s expectations.<\/p>\n
Addressing several parliamentary and supplementary questions on GIC\u2019s investment performance, Mr Siow said the fund expected increased market volatility and saw that valuations were heightened, so it took pre-emptive measures to moderate its risk exposure.<\/p>\n
The measures, which were taken in recent years, were intended to keep the portfolio risks within acceptable limits, and to guard against the possibility of \u201csignificant asset impairment\u201d if markets fell sharply.<\/p>\n
\u201cBut as equity markets have continued to remain elevated, these prudent de-risking measures resulted in some foregone returns,\u201d said Mr Siow.<\/p>\n
GIC\u2019s annual return has lagged behind its reference portfolio by 0.5 and 1.3 percentage points over 20 and 10 years, respectively, the Financial Times reported in December.<\/p>\n
The fund\u2019s reference portfolio comprises 65 per cent global equities and 35 per cent global bonds.<\/p>\n
Over five years, FT said the GIC portfolio lags its reference by 3.1 percentage points.<\/p>\n","protected":false},"excerpt":{"rendered":"SINGAPORE: In trying to lower risks, Singapore\u2019s sovereign wealth fund GIC ended up missing out on some investment…\n","protected":false},"author":2,"featured_media":409550,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164,81245,216876,9801,216875],"class_list":{"0":"post-409549","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-economy","12":"tag-gic","13":"tag-jeffrey-siow","14":"tag-parliament","15":"tag-temasek-holdings"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/409549","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=409549"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/409549\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/409550"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=409549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=409549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=409549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}