Singapore's GIC reports stable returns amid uncertainty over inflation

The logo of the Government of Singapore Investment Corp. (GIC)

Munshi Ahmed | Bloomberg | Getty Images

Singapore's sovereign wealth fund GIC reported stable returns for the year but warned of "profound uncertainties" as investors face worries about inflation, pandemic risks and geopolitical challenges.

The fund's portfolio recorded an annualized dollar nominal rate of return of 7% over a 20-year period ending March 31, 2022, GIC said in its annual report published on Wednesday.

It also achieved an annualized rolling 20-year real rate of return of 4.2 % for the period ending March 31, after stripping away inflation. GIC doesn't publish annual results.

Still GIC, which is among the world's largest investors, painted a rather bleak picture of the global environment.  

"Years of concerns over deflation have turned into worries of elevated inflation, forcing economic policymakers to reverse stimulus policies," said Chief Executive Lim Chow Kiat in the report.

"At the same time, the clock for the climate crisis is ticking, pandemic risk lingers on, and geopolitical conflicts and domestic political schisms are growing. There are no easy choices for policymakers and business leaders, and in turn, for investors."

Rising inflation


Source https://www.globalcourant.com/singapores-gic-reports-stable-returns-amid-uncertainty-over-inflation/?feed_id=2711&_unique_id=62e0dd176394b

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