30 July 2015, Singapore – GIC released its annual report for the financial year ended 31 March 2015 and announced steady long-term investment returns on the foreign reserves of the Singapore Government under its management. Over 20 years ending March 2015, the GIC Portfolio’s annualised real rate of return was 4.9% per year. This means that between April 1995 and March 2015, GIC has enhanced the portfolio with a return averaging 4.9% per year on top of having protected the portfolio against global inflation. In USD nominal terms, the GIC Portfolio generated an annualised return of 6.1% over the same period.
Mr Lim Chow Kiat, Group Chief Investment Officer: “While asset prices have risen strongly, the outlook for economic growth and earnings has not improved by as much. Current valuations are high, pointing to a more difficult future investment environment with lower broad market returns and higher volatility. GIC will keep to its patient orientation and continue to take advantage of short-term price volatility in order to generate good real returns over the long term.”