27-07-2023, 03:47 PM
(27-07-2023, 03:11 PM)Wildreamz Wrote:(27-07-2023, 11:46 AM)specuvestor Wrote: This is a good simple example of opportunity cost on AA. If you use OA or SA to invest through CPFIS then your opportunity cost is actually 2.5%/ 4%
Just as a reference GIC SGD CAGR return is about 5%+. And we know that most people lose money in CPFIS
They posted USD denominated 6.9% CAGR over 20 years and nominal real returns of 4-5% CAGR. Respectable, but probably below SPY (http://www.lazyportfolioetf.com/etf/spdr-sp-500-spy/).
https://www.gic.com.sg/newsroom/all/gic-...rtunities/
Those are decent returns considering the fund size and mandate (requires fixed income allocation, limited drawdowns). The more appropriate benchmark would be a combination of a global equity index and a global fixed income index.
Norway's SWF (NBIM) is also a good benchmark and they have shared some of their work on evaluating their returns with the public. See here: Returns | Norges Bank Investment Management (nbim.no)
It's not apples-to-apples, since NBIM measures their returns in a basket of currencies but I suspect it would be very similar to results measured in USD. With that in mind, the returns of NBIM and GIC have been very similar.