The Government of Singapore Investment Corporation (GIC) is eyeing growth prospects in Asia and emerging markets, with a cautious view of bonds, local media reported on Tuesday.
This is the strategy adopted by the GIC as it copes with changes in the post-crisis financial landscape, local newspaper the Straits Times reported.
GIC's presence in emerging markets is likely to grow, owing to brighter economic growth prospects in these economies relative to developed economies. A total of 10 percent of GIC's portfolio is made up of equities in emerging markets.
Asia could also feature more prominently in the long term. The region now accounts for 24 percent of GIC's overall portfolio as of March 31, up from 23 percent a year earlier.
The state-owned investment firm also takes a cautious view of bonds. GIC chief investment officer Ng Kok Song noted that bonds were the best asset class on a risk-adjusted basis in the 1980s and 1990s, but the outlook could change as yields have declined and governments are issuing massive amounts of debts.
Bonds formed about 24 percent of GIC's portfolio as of March 31.
Source:Xinhua
|
Comment
Tell A Friend
Print Format
Save Article