GIC posts resilient long-term real returns and focuses on finding opportunities in an increasingly challenging market. The GIC Portfolio achieved an annualised USD nominal rate of return of 6.9% and an annualised real i.e. above global inflation, rate of return of 4.6% over a 20-year period that ended 31 March 2023.
In an era of continued uncertainty, increasing the resilience of the GIC Portfolio is a key focus. GIC has raised liquidity and focused on finding investment opportunities with stable long-term returns, including investments in real estate and infrastructure to protect the portfolio from inflation. The long-term compounding effect of these returns will enable GIC to deliver resilient real long-term returns amidst a challenging environment.
GIC is also taking steps to capture sustainability-related investment opportunities by creating focused teams within asset classes, namely, the Climate Change Opportunities Portfolio in Public Equities, which will deploy more capital towards climate mitigation and adaptation. The Sustainability Solutions Group in Private Equity will increase its investments to early-stage energy transition opportunities. Finally, the Transition and Sustainable Finance Group in Fixed Income and Multi Asset will invest in opportunities such as funding decarbonisation and the grey-to-green transition from the bottom-up.
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