GIC has continued to generate good, stable returns over inflation. In 2022, the GIC Portfolio achieved an annualised USD nominal rate of return of 7.0% and an annualised real i.e. above global inflation, rate of return of 4.2% over a 20-year period that ended 31 March.
Investors today are facing a rapidly shifting investment landscape with profound uncertainties emerging on multiple fronts. 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.
Given these uncertainties, GIC has doubled down on our core investment principles — to diversify our portfolio, take the long view, and emphasise preparing rather than predicting.
GIC has also announced the establishment of a dedicated Sustainability Office, which will deepen our research into key sustainability issues and push to integrate sustainability into all our investment and corporate processes. This reflects our commitment to support the global transition to net zero in the real economy, and is in addition to our rising investments in new technologies, and engagement with our portfolio companies to support their decarbonisation and transition efforts.
Our people and culture are particularly critical in navigating a world in transition. This year's feature article, The Biggest Value Add, elaborates on our values and culture, which enable GIC to take bold and calculated risks in an uncertain investment environment.
Read the report here.