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GIC trains sight on healthcare, commodities sectors

SINGAPORE — Amid tough times ahead, Singapore’s sovereign wealth fund GIC said it would look for opportunities in the healthcare sector, as well as the beaten-down commodity space.

SINGAPORE — Amid tough times ahead, Singapore’s sovereign wealth fund GIC said it would look for opportunities in the healthcare sector, as well as the beaten-down commodity space.   

“Even as we expect the real returns for the GIC Portfolio to be lower going forward, we are confident we can continue to find attractive bottom-up investment opportunities by taking advantage of our long-term horizon, skills and global reach,” said Mr Lim Chow Kiat, deputy group president and group chief investment officer at GIC.

“We typically find two types of situation which give us a good starting point. First, those markets that have experienced a big sell-off offer interesting opportunities. For instance, we see natural resources and commodities offering for active management opportunities. So are some assets in the financial sector. 

“Second, the sectors that are fundamentally doing well. Healthcare, for example, is growing strongly. Those are the areas we would like to emphasise on,” Mr Lim told reporters at a media briefing to unveil GIC’s annual report.

Private equity (PE), Mr Lim added, is also an important area for GIC. “Like other classes, it faces the challenges of higher valuations — entry valuations are trending up. The advantage, however, is that PE partners have other ways to add value. They add value operationally. We can still see an upside there as we continue to emphasise on PE. We have room to do more,” Mr Lim added.

Emerging markets, too, will continue to be a focus for GIC. “We continue to see (emerging markets) offering good returns … Developed markets, we feel, are rich and stretched in terms of valuations, but that does not mean there are no upsides. There are many good companies you can find in the US and Europe.”

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