GIC remains focused on long-term performance amidst profound uncertainties in the investment environment. The GIC Portfolio achieved an annualised USD nominal rate of return of 5.8% over a 20-year period that ended 31 March 2024. Accounting for global inflation, GIC’s annualised real rate of return over the same period was 3.9%.

In today’s uncertain terrain, investors must rely on their purpose and unique strengths. In GIC’s case, its purpose – to preserve and enhance Singapore’s foreign reserves for the long term – means staying disciplined and diversified. Over the past years, GIC has been diversifying on a far more granular level to enhance the resilience of the total portfolio. This includes stepping up its investments in infrastructure and real estate. In addition, investment teams across all asset classes continue to maintain strict price discipline, carefully weighing risk-reward prospects of potential investments to ensure adequate compensation for assuming the risks.

Amidst the volatility, GIC is also playing to its strengths and seizing new opportunities. For example, GIC saw an opportunity to leverage its long-term flexible capital to bridge a funding gap for climate technologies such as green steel and battery storage, where companies often find themselves caught between traditional buckets of capital. These companies require long-term capital to grow, but they are too mature for venture and growth equity, yet lack the track record to attract infrastructure funding. This year GIC established an investment programme for green assets, following the early success of the Sustainability Solutions Group in the Private Equity department investing in climate technologies.

Read the report here.