Singapore's Government of Singapore Investment Corporation (GIC) plans to deploy an additional US$30 billion into hedge funds, with a strategic focus on artificial intelligence and data center infrastructure, top executives said.
The move marks a significant expansion of the sovereign wealth fund's exposure to private markets and alternative assets as it seeks new growth engines.
4%, a decline that underscores the challenge of generating alpha in a lower-yield global environment.
The investment push comes as GIC faces pressure to maintain its long-term return targets.
The fund recently reported that its annualized real return for the 20-year period ending March 31 had fallen to 3.4%, a decline that underscores the challenge of generating alpha in a lower-yield global environment.
By channeling capital into hedge funds with specific mandates in AI and tech infrastructure, GIC aims to capture higher-risk, higher-reward opportunities that traditional public equity portfolios may no longer provide.
This strategic shift reflects a broader trend among sovereign wealth funds and institutional investors to increase allocations to private equity and hedge funds.