GIC believes in US’ long-term potential; mutual trust has enabled sovereign wealth fund and US partners to prosper: SM Lee

Singapore’s sovereign wealth fund continues to believe in the US economy’s long-term potential, according to Senior Minister Lee Hsien Loong on Wednesday ( Nov 13 ). This is due to GIC and its partners in the US’s mutual trust and confidence.

” The US continues to be the most significant, energetic and adaptable economy in the world,” said Mr Lee, who is chairman of GIC’s board of directors, in a presentation handle at this year’s GIC Insights gala dinner in New York.

It continues to be the top option for creative and entrepreneurial individuals from all over the world.

Its investment markets are still the world’s most modern and transparent. “

Mr. Lee noted in his statement that GIC’s initial major investment in the US was” a 40th celebration,” and that its relationship with the US has “grown from strength to power.”

We are thankful to our US partners and fund professionals, many of whom we have long interactions with and who are also present with us in this area now, he said.

We were able to live together because of each other’s common trust and confidence. “

NEW Prospects

Mr. Lee stated in his statement that GIC continues to observe investment opportunities in the US, particularly in developing fields like ecology and climate systems.

Not only do like investments  aid to decarbonise the global market, they may also benefit local communities, he added.

He gave two GIC investment firms that are already active in this field.

” One is building a power plant in West Virginia, on the site of an old steel machine, to make iron-air batteries that provide long-duration energy store. The flower will make hundreds of jobs in the local neighborhood,” he said.

” Another company is collaborating with US school districts to make college travel electrifying.” It recently announced the second 100 per cent energy school bus ships in the US in Oakland, California. “

WEATHERED STORMS

Mr. Lee even compared how GIC “has persevered through the motions” in its support of the US.

” GIC’s years of investing in US markets have not always been easy traveling,” he said.

” We weathered some peaks and troughs, and stayed invested in hard times.

” We grew together during the boom, and we stayed committed and concerned investors throughout more trying and turbulent times. “

Mr Lee recalled the” Black Monday” stock market crash of Oct 19, 1987, the dot-com bubble period, the 2008 global financial crisis, and the COVID-19 epidemic as examples of winds that GIC has weathered during its four years in the US.

He claimed that GIC was able to accomplish this because it could look at things from a long perspective.

” We know that businesses go through cycles – that is an unavoidable fact, which we must accept and walk through with some calmness, if we are to maximise long-term earnings,” he added

This is a really different perspective from another business people, many of whom have shorter time frames. They want to invest in something appealing, but they also need a solid exit plan to sell and distribute the profits by a deadline sunset date. “

For GIC, nevertheless, there is” no set end time”.

” We is hunker down and stay invested through boom-and-bust processes, because GIC’s investment horizon is not measured in all times or even years, but by basics and fundamental price,” he said.

This holding capacity is invaluable, not just for GIC itself, but also for the investment companies it invests in.

” Of course, there will be days when investments turn sour, but we take it in our foot. GIC, and notably its customer, understands that there is no back without risk. “

Then, according to Mr. Lee, Ms. Lee made reference to the 1999 book Dow at 36,000, which noted how GIC had been heavily invested in the US prior to that time and is currently close to the$ 44,000 mark.

” We have stayed here in the US throughout 40 very productive years of collaboration, whether the market moved away, down, or backward,” he said.

” We have significantly benefited from the power of long-term compound,” he added.

Therefore, I have faith that GIC may remain a calm investment in the US for a very long time. “