GIC Report 2022/23
GIC publishes an annual report on the management of the government’s portfolio and information on our policies and people.
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Over the 20-year period that ended 31 March 2023, GIC achieved an annualised rate of return of 4.6% above global inflation.
At GIC, we aim to achieve sustainable real returns over a 20-year horizon, so as to preserve and enhance the international purchasing power of the reserves we manage. Our goal is expressed in real terms because we must, at the minimum, generate a return above global inflation.
Our Client’s assessment of our performance is based on both our rolling 20-year real return, and the risk taken to achieve these returns.
We maintain a diversified portfolio spanning six core asset classes, each with a different risk and return profile. Our Portfolio is constructed to be resilient across a range of plausible market economic conditions, while generating positive long-term returns. This requires it to be well-diversified. By spreading our investments across asset types, regions, industries and companies, the GIC Portfolio is more diversified and less sensitive to market volatility.
While the GIC Portfolio’s asset allocation is constructed to achieve an appropriate long-term balance of risk and return, the geographical distribution of the portfolio is fluid and depends primarily on market capacity, economic cycles and investment opportunities.
The investment environment continues to change in fundamental ways, including shifts in geopolitics, interest rates, and the potential impact of generative AI. To navigate these disruptions, GIC continues to build portfolio resilience by taking a long view, diversifying our exposures, and preparing, rather than predicting. We will continue to seek out investment opportunities that will generate stable real returns over the long term. As we carefully navigate these structural forces, we will stay anchored in our mandate, values, and investing principles – diversifying, adopting a long-term approach, building optionality, pursuing bottom-up opportunities, and adding value to our investments.
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