Singapore's GIC reports 7.8% annual return

The Government of Singapore Investment Corp (GIC), one of the world's largest sovereign wealth funds, said today its nominal annual rate of return over the past 20 years was 7.8 per cent in US dollar terms.      

The traditionally-secretive GIC released the figure in its first annual report on the management of its portfolio.      

But the 48-page report contained few other financial details.      

"GIC's investment objective is to achieve a reasonable rate of return above global inflation with due regard to risks," the firm's deputy chairman and executive director, Tony Tan, told reporters.      

Tan said GIC's annualised real rate of return was 4.5 percent over the 20 years to March.      

 

He said the company met its investment objective despite global shocks including the Asian financial crisis a decade ago "and the ongoing credit turmoil in the international markets."      

The report said GIC managed well over $100 billion in investments - a figure it has released previously. But analysts have said the true figure could be 300 billion or more.      

As of March 31, the biggest component of GIC's portfolio was in the Americas, with the United States alone accounting for 34 per cent, the report said. Europe accounted for 35 percent, Asia 23 per cent and Australasia two per cent, it said.      

Since late last year GIC has made multi-billion dollar investments in global financial institutions suffering massive losses from US subprime, or higher-risk, mortgage investments.