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Writer's pictureRoyce Advisory

What can long-term investors learn from Singapore's sovereign wealth fund?

One of Singapore's two sovereign wealth fund's (GIC) recent annual report contains a treasure trove of insights (link below).


Working with long term investors and protecting client capital we are drawn to some of the key insights within the report including;


-> Maintain a disciplined, long-term focus GIC's 20-year annualised real return of 3.9% demonstrates the power of patient capital. They emphasise preserving and enhancing long-term purchasing power over short-term gains.


-> Diversify across asset classes and geographies GIC's portfolio spans public and private markets globally, providing resilience against market volatility and capturing diverse opportunities.


-> Adapt to changing landscapes While anchored in core principles, GIC continuously evolves its strategies. They're actively preparing for higher inflation, geopolitical risks, and technological disruptions like AI.


-> Invest in talent and culture GIC prioritises building a diverse, skilled workforce and fostering a culture of excellence, prudence, and continuous learning.


-> Consider sustainability Environmental, social, and governance factors are increasingly integrated into GIC's investment process, recognising their long-term impact on returns.


See the full report here - https://report.gic.com.sg/




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