GIC continues to deliver resilient long-term returns and remains cautious in a volatile investment environment
Singapore-based GIC saw its investment portfolio achieve an annualized U.S. dollar nominal rate of return of 4.6 percent over the 20-year period that ended March 31, 2020.
After accounting for global inflation, GIC’s annualized real rate of return stood at 2.7 percent over the same period. This means that over the past 20 years, from April 2000 to March 2020, GIC has achieved an average annual return of 2.7 percent — over and above the global inflation rate. The rolling 20-year real rate of return is the primary metric for evaluating GIC’s investment performance, as it represents GIC’s mandate to preserve and enhance the international purchasing power of the reserves under our management over the long term, that is, to achieve good long-term returns over global inflation.
COVID-19 was an unforeseen shock to the global economic system. It revealed and accentuated certain long-term vulnerabilities and trends that GIC had observed for several years.