GIC announces improvement in returns over last fiscal year

The sovereign wealth fund, which manages Singapore's foreign-exchange reserves, announced that annual returns on investment for the 20 years to March rose to 7.2% in US dollar terms, compared to 7.1% a year earlier. The real rate of return - once global inflation is factored in - was 3.9%. Annualized returns over 5-year and 10-year periods came to 6.3% and 7.4%, respectively. This was the first time GIC had disclosed figures for 5- and 10-year horizons.

GIC's portfolio is officially valued at $100 billion, but analysts say that assets under management could be as high as $300 billion.

Over the course of the fiscal year, GIC's exposure to equities markets fell to 49% from 51%, although investments in emerging markets equities rose to 15% from 10%. Fixed-income exposure was at 22%, up from 20%, while real estate increased to 10% from 9%. Private equity remained unchanged at 10%.

Investment in the Americas accounted for 42% of assets, compared to 43% a year earlier, with the US figure down to 33% from 36%. European exposure also fell, to 28% from 30%, while Asian exposure increased to 27%, from 24% last year.

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• Topics
• Southeast Asia
• GIC Private