GIC Generates Positive Return for FY 2021
Posted on 07/22/2021
Singapore’s GIC Private Limited revealed it had a good return for the Fiscal Year ending March 31, 2021. GIC’s portfolio reached an annualised USD nominal rate of return of 6.8% over a 20-year period that ended 31 March 2021. After accounting for global inflation, GIC’s annualised real rate of return stood at 4.3% over the same period. This means that over the past 20 years, from April 2001 to March 2021, GIC has achieved an average annual return of 4.3% — over and above the global inflation rate. This was GIC’s best annual performance since 2015. The five-year nominal return increased to 8.8%.
To compare for the period ended March 31, 2020, that same annualised USD nominal rate of return over the 20-year period was 4.6%.
“In early 2020, the COVID-19 pandemic ushered in one of the toughest economic times in modern history. Yet, the resulting severe sell-off in global risk assets reversed course in response to the unprecedented speed and scale of government policy interventions. Currently, with elevated asset valuations, more fragile fundamentals in the global economy and less policy room, we are cautious on the macro outlook. In contrast, we are positive on the micro prospects, given new areas of growth that are driven by increasing emphasis on sustainability, accelerating technological transformation, and growing needs for businesses to reconfigure their supply chain.” said Mr Lim Chow Kiat, Chief Executive Officer of GIC, in a press release.
In 2021, GIC also announced the establishment of an internal Sustainable Investment Fund (SIF) to further extend its reach.