Singapore’s sovereign wealth fund on Tuesday signalled that its investment focus would shift to emerging markets after unveiling a 20 per cent drop in the value of its portfolio.

The Government of Singapore Investment Corp (GIC) does not disclose precise figures of its portfolio but is estimated by analysts to manage more than $200bn. In effect this means the aggregate value of its assets dropped by at least $40bn in the year to March – partly because of ill-timed investments in western assets.