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Big worry: GIC’s returns fall for 3rd year in running

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Old 13-07-2018, 05:33 PM   #1
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Big worry: GIC’s returns fall for 3rd year in running

https://www.todayonline.com/singapor...ng-tech-sector

The real annualised return was at 3.7 %, less than special account interest. Remember my biggest worry since the start of the year? How they going to sustain that cpf 4 % interest rate?
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Old 13-07-2018, 06:00 PM   #2
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https://www.todayonline.com/singapor...ng-tech-sector

The real annualised return was at 3.7 %, less than special account interest. Remember my biggest worry since the start of the year? How they going to sustain that cpf 4 % interest rate?
You do realize that 3.7% is the real rate of return, and the nominal rate would be higher than that?
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Old 13-07-2018, 06:01 PM   #3
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Singapore inflation rate isn’t that high, mind you.
Some years even negative inflation.
You do realize that 3.7% is the real rate of return, and the nominal rate would be higher than that?
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Old 13-07-2018, 06:02 PM   #4
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Old 13-07-2018, 06:03 PM   #5
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Highly paid scholars with make more than my tech returns of 50% ♥
One year 50%

The scholars made more millions than my fund returns
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Old 13-07-2018, 06:04 PM   #6
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I think what's troubling is the downtrend. The exceptional returns they enjoyed in the 80s which helped them mask lower returns in the later years are slowly being removed from the 20 year average. If returns don't increase significantly in the next few years, we're going to see the extent of losses made during gfc, afc, etc show up in very bad light.
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Old 13-07-2018, 06:05 PM   #7
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Singapore inflation rate isn’t that high, mind you.
Some years even negative inflation.
They use some global inflation rate, so Singapore's inflation rate is not representative
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Old 13-07-2018, 06:07 PM   #8
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Sure boh? Got link?

They use some global inflation rate, so Singapore's inflation rate is not representative
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Old 13-07-2018, 06:08 PM   #9
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Yes you are right!
The worrying trend is the annualised return keep dropping, means the actual last year return was even worse.

I think what's troubling is the downtrend. The exceptional returns they enjoyed in the 80s which helped them mask lower returns in the later years are slowly being removed from the 20 year average. If returns don't increase significantly in the next few years, we're going to see the extent of losses made during gfc, afc, etc show up in very bad light.
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Old 13-07-2018, 06:11 PM   #10
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Sure boh? Got link?
Saw it in the report. Paiseh, not at pc to dig now
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Old 13-07-2018, 06:18 PM   #11
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Okay, I saw it too, but last year, the market so good, the nominal return wAs only 5.1 %.
This year.... how?

Saw it in the report. Paiseh, not at pc to dig now
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Old 13-07-2018, 06:38 PM   #12
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I think what's troubling is the downtrend. The exceptional returns they enjoyed in the 80s which helped them mask lower returns in the later years are slowly being removed from the 20 year average. If returns don't increase significantly in the next few years, we're going to see the extent of losses made during gfc, afc, etc show up in very bad light.
thatís my point as well. the gains frm the past is being average out soon. but they would say that the low returns they are getting is the norm now
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Old 13-07-2018, 06:48 PM   #13
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that’s my point as well. the gains frm the past is being average out soon. but they would say that the low returns they are getting is the norm now
They're already saying that. Frankly, benchmarking against inflation may be misleading. They should be benchmarking against a global passive index? I mean, even matching a passive return with less risk is an achievement.
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Old 13-07-2018, 07:10 PM   #14
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https://www.todayonline.com/singapor...ng-tech-sector

The real annualised return was at 3.7 %, less than special account interest. Remember my biggest worry since the start of the year? How they going to sustain that cpf 4 % interest rate?
CPF interest pay out not purely dependant to GIC.
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Old 13-07-2018, 07:12 PM   #15
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Singapore inflation rate isnít that high, mind you.
Some years even negative inflation.
That's right. Also it depend on your spending group. Car price is one factor in inflation rate. If yoi don't drive, you are less impacted by average.
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