Xmen says: August 10, 2014 at 1:01 am Yes, it is obvious that GIC’s return is subpar compared to S&P 500 index in USD. 5 YEAR – GIC 2.6%, S&P 500 17.94% 10 YEAR – GIC 8.80%, S&P 500 7.40% 20 YEAR – GIC 6.5%, S&P 500 9.22% As seen above, GIC is materially underperforming S&P 500 20 year annualized return by 2.72%. I believe part of it can be explained by the disposal of fixed assets to Temasek at below market value (e.g. Changi Airport.) Incidentally, it boosted Temasek’s return to beat Warren Buffett handily. In the last 5 years, however, GIC is underperforming S&P 500 by a whopping 15.34% annualized! This certainly raises a big red flag for a pension-like fund. The citizen must demand full accounting from the government on the EPIC FAIL! * S&P 500 total annualized return data is from year 2013 (source: Wikipedia) Reply Xmen says: August 10, 2014 at 1:05 am PS. I find it difficult to accept the massive underperformance in the last 5 year. Could it be that they were “managing” the return (through accounting) to lower the expectation from people demanding the (higher) return of CPF? Reply phillip ang says: August 10, 2014 at 1:47 am Nobody, not even MPs, knows what is really happening inside GIC. I think there are huge realised losses and this is the reason for the massive injection of CPF and government reserves into GIC. The injection of more than $100 billion in 5 years boosts public and foreign investors’ confidence. GIC may not be the long term investor it claims and may have taken big hits. Hard to lower people’s expectation of higher returns because PAP always claims they are the best and oversold themselves. news360/digestarticle/oD6DBbsH6kuHO5eMqmEl2w#
Posted on: Sun, 10 Aug 2014 14:35:22 +0000
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