"Inflation itself is already a problem because we want to generate a return higher than inflation," Lim Chow Kiat, GIC's chief executive, told Reuters in an interview at the fund's 37th-floor office overlooking the financial district.(Singapore's iconic Merlion with the financial district in the background)Telegram搜索用户(www.tel8.vip)是一个Telegram群组分享平台,Telegram搜索用户包括Telegram搜索用户、Telegram群组索引、Telegram群组导航、新加坡Telegram群组、Telegram中文群组、Telegram群组(其他)、Telegram 美国 群组、Telegram群组爬虫、电报群 科学上网、小飞机 怎么 加 群、tg群等内容。Telegram搜索用户为广大电报用户提供各种电报群组/电报频道/电报机器人导航服务。
SINGAPORE: Singapore sovereign wealth fund GIC, one of the world's biggest investors, is bracing for muted investment returns and expects little respite from runaway inflation that has forced central banks around the world to tighten policy.
"Inflation itself is already a problem because we want to generate a return higher than inflation," Lim Chow Kiat, GIC's chief executive, told Reuters in an interview at the fund's 37th-floor office overlooking the financial district.
"Certainly we have to assume that the macro environment remains challenging for the foreseeable future," he said, highlighting rising interest rates and its impact on economies and financial assets, and the knock-on volatility in markets.
GIC is ranked as the world's sixth-biggest sovereign investor with $799 billion in assets, according to research firm Global SWF.
Bigger peers such as Norway's sovereign wealth fund and Japan's Government Pension Investment Fund have also flagged difficult market conditions, citing inflation and geopolitical events.
GIC said it reported an annualised 20-year real rate of return of 4.2% for the year to March versus 4.3% over the same period a year ago. The United States was its biggest market, making up 37% of its portfolio, up from 34% a year ago.
Lim said central banks are likely to further tighten policy, at least in the short term, to fight inflation.
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Concerns about runaway inflation have trumped central banks' worries about growth. The U.S. Federal Reserve is likely to hit a key milestone on Wednesday with a rate hike that effectively ends pandemic-era support for the economy.
"The challenge is that we see inflation not just as a near term phenomenon but actually something that will likely be part of the investment environment for the medium term," said Prakash Kannan, GIC's chief economist.
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GIC has been expanding its portfolio with real estate assets focused on office, retail and industrial, as well as other sectors such as data centres and infrastructure.
"Many of the real estate and infrastructure type investments actually have either automatic CPI (consumer price index) riders or an ability to raise rents once the lease ends," said Jeffrey Jaensubhakij, GIC's group chief investment officer.
The fund said it has raised its headcount in its real estate and infrastructure groups by about 35% over the past three years.
Last month, GIC agreed to buy a major stake in Europe-based The Student Hotel, with Dutch pension fund APG in a deal that valued the student accommodation and hotel group at $2.2 billion.
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