GIC grows real estate allocation, expands decarbonization efforts

Singapore’s GIC has increased its real estate allocation from 8 percent to 10 percent, IREI has learned.

The sovereign wealth fund also achieved an annualized nominal rate of return of 7 percent over a 20-year period, ending March 31, according to a recent performance report. After accounting for global inflation, GIC’s annualized real rate of return stood at 4.2 percent over the same period.

“Today investors are facing a rapidly shifting investment landscape with profound uncertainties emerging on multiple fronts,” said Lim Chow Kiat, CEO of GIC. “The macroeconomic environment has entered a high-inflation regime, driven by supply chain disruptions, a rapid recovery in demand and rising wages. In addition, the world is facing increased risk of fragmentation as geopolitical tensions continue to rise. At the same time, sustainability tasks have become more urgent.”

He adds, “Given these uncertainties, we have doubled down on our core investment princ