While GIC, fund manager of CPF, has been trying to conceal its poor performance, it may have inadvertently shot itself in the foot. 🙂
CPF members would do well to scrutinize and understand the nonsense put out by GIC’s top management: the objective of tons of irrelevant information is to confuse and obfuscate.
In an attempt to distract CPF members from GIC’s weak performance, CEO Lim Chow Kiat “attributed the decline largely to the drop-off of high returns at the beginning of the tech bubble period“.
Lim: “But actually, back then, 1996 really was a very good year for developed markets. Unfortunately, in terms of numbers, we had that year drop out.” (TKSS)
Lim is indirectly admitting that GIC’s current performance is kind of shitty as it needs high returns from 20 years ago to boost current return figures.
This would also imply that recent figures were higher due solely to high returns in the years preceding the bursting of the tech bubble.
Since the tech bubble had burst in 2000, this would mean that GIC is right to warn – and confirm – of its akan datang downhill performance. High returns in 1997, 1998, 1999 will soon be excluded from GIC’s 20-year annualized return metric.
In the following post, I will use figures to confirm something is terribly amiss with GIC’s figures.
With GIC making losses, CPF members should not dream of earning higher returns in the next decade. Instead, be prepared for withdrawal age to be postponed or a reduction in future CPF ‘instalments’. 😦