One of Singapore's sovereign wealth funds, GIC Pvt Ltd, announced its preparations for the possible volatility of markets and economies in the second part of this year. One of the areas the fund is hedging against is the threatened slowdown of the Chinese economy. The fund, however, intends to use the opportunity of volatile markets to boost its exposure in the stock markets.
GIC said that it was now more bullish on the US economy. The fund added that they see the US market as a significant destination for its investments. According to chief investment officer of GIC Lim Chow Kiat, "U.S. is the most furthest along in terms of it no longer needing policy support. The U.S., in particular the private sector, time and again has shown that they are able to deal with crisis and challenges. It continues to produce many companies which are profitable and competitive."
As of March 31 of this year, 44% of the fund's portfolio is currently invested in the U.S. The statistic is an increase from the 42% recorded last year. Its portfolio in Asia and Europe, however, fell by 1% each to 28% and 25%, respectively.
According to the same report, the fund's exposure in private equity, real estate and infrastructure is now at 26% as of March 31 down 1% from the 27% last year. GIC's portfolio to bonds and other fixed income products went up 4% to 21% from last year's 17%. Investments in public equities was at 46%. A year ago, investments in public equities was recorded at 45%.
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