Government of Singapore Investment Fund Opens up a bit

Government of Singapore Investment Fund has more than US $ 100 billion, generating 5.8% average return for past two decades finally opens up a bit. The fund was set-up by Lee Kuan Yew since 1981 has been keeping a very tight lip but shed some lights to address some of the uneasiness of SWFs.

One of the very powerful trend to note is this :-

"(WSJ)Looking ahead, we see a more challenging investment environment than what we have seen since GIC's formation in 1981," Chief Investment Officer Ng Kok Song said. "The powerful trend of disinflation that propelled the global capital markets over 25 years seems to have ended."

The disclosures offered new details on what is considered one of the world's largest investors. GIC's first public annual report shows it has shifted away from fixed-income assets in recent years to focus on equity investments and alternative classes such as private equity and real estate. Fixed-income assets now make up about one-quarter of its portfolio, GIC said, compared with three-quarters 25 years ago.

Going forward, Mr. Ng said, the investment landscape will be burdened by financial firms as they deleverage, as well as rising costs of food and energy. However, domestic demand may be resilient in large developing economies.



Keyword: The end of disinflation. Translation: beginning of an inflation era.

Traditionally, companies with pricing power, properties, gold, (hard assets) will do well in the era of inflation era. So, there is no need to be so hardworking to follow on the proposed US $ 700 billion bailout as that is immaterial, the trend for inflation will be on uptrend though it can runs on up-and-down-path.

Will post more on this topic next week after I get my materials organized.