GIC took correct view of developed market equities

Lawrence Wong takes question on GIC missing out on "the surge in DM equities within last 5 years"

Nisha Ramchandani

Published Tue, Nov 7, 2017 · 09:50 PM

Singapore

AS a long-term player, GIC was correct to take a conservative view and reduce its exposure to developed market equities in recent years, said Second Minister for Finance Lawrence Wong in Parliament.

He was responding to questions from Non-Constituency MP Leon Perera who questioned GIC's decision to cut its allocation to developed market (DM) equities "in such a big way" over 2010-2012, and then gradually until 2016. As a result, GIC missed "the surge in DM equities within the last five-year period" when it could have undertaken a strategy to generate short-term returns before taking profit, Mr Perera pointed out.