The Government of Singapore Investment Corporation (GIC) has adjusted its strategy to focus more on emerging markets, particularly in Asia. Of particular interest are commodity-rich countries with large and young populations at early stages of industrialization. In its 2010 Portfolio Management Report (PDF link), Chief Investment Officer Ng Kok Song wrote that GIC sees a potentially prolonged economic slowdown in the developed world thanks to debt deleveraging and austerity programs, while emerging markets should enjoy better credit ratings (with increased inflation risk).

Investment in emerging economies has been a significant part of GIC’s strategy since 2003, when it defined emerging market equities as a separate asset class. Since then it has built its expertise in asset management and trading in emerging market public and private equities, fixed income and real estate. The report also said GIC’s portfolio was in ‘good shape’ overall, and it had recouped most of its losses from the global financial crisis.

part-article: Straits Times