Singapore's Wealth Fund Warns Markets Face Future of Low Returns
- Annualized real return is 3.4% for 20 years through March 31
- Rate is equal to the lowest since the global financial crisis
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Singapore’s sovereign wealth fund GIC Pte expects the U.S.-China trade war, Brexit and over-hyped valuations in developed markets to weigh on returns in coming years.
GIC, which released its annual report Wednesday, generated an annualized real rate of return of 3.4% for the 20 years ending March 31. That’s the same as last year and the lowest level since the global financial crisis roiled markets in 2008. GIC will only say its assets under management are above $100 billion but it’s estimated to oversee about $390 billion, making it one of the world’s largest such funds.