GIC posts 3.8% annualised return over 20 years despite economic uncertainties
The state investor recorded a real rate of return of 3.8 per cent a year for the 20 years to March 31, 2025.
SINGAPORE – The returns on GIC's investment portfolio have remained stable despite trade uncertainties, geopolitical upheaval and volatile markets, according to its annual report on July 25.
The sovereign wealth fund recorded a real rate of return of 3.8 per cent a year for the 20 years to March 31, 2025, down 0.1 percentage point from results a year ago.
This figure, which is adjusted for inflation, is over and above the global inflation that has occurred throughout the same 20-year window.
Without adjusting for inflation, GIC's annualised return came in at 5.7 per cent over the same 20-year period.
The figures are expressed in US dollars and calculated on a rolling basis, which means the real rate of return for the year ending March 31, 2005, will drop out of the calculation in 2026.
This 20-year annualised real rate is the main yardstick GIC uses, as these figures are said to better reflect the firm's mandate to achieve long-term returns exceeding global inflation. It does not publish the rate of return of each single year.
GIC's investments and asset mix also saw some changes over the last financial year.
Top stories
Swipe. Select. Stay informed.
Asia 11 Thai civilians killed as Thai and Cambodian militaries clash at disputed border: Reports
Asia Singapore urges all parties in Thailand-Cambodia border dispute to exercise restraint
Asia Deadly Thai-Cambodian dispute puts Asean's relevance on the line
Life Hulk Hogan, who helped turn pro wrestling into a billion-dollar spectacle, dies at 71
Singapore Avoid water activities around Tuas Second Link, Raffles Marina after chemical tank accident: NEA
Singapore Khatib Camp to make way for housing, with its functions moving to Amoy Quee Camp
Singapore Mindef to set up new volunteer management unit to grow volunteer pool
Singapore Primary 1 registration: 29 schools to conduct ballot in Phase 2B
Its portfolio exposure to the Americas – comprising North and Latin America – increased from 44 per cent to 49 per cent over the 12 months.
Chief executive Lim Chow Kiat told a briefing on July 24 that this increase was driven by the appreciation of existing holdings in the region and more capital deployment, especially to the US – GIC's biggest investment destination.
Conversely, its exposure to the Asia-Pacific region declined from 28 per cent to 24 per cent over the year.
The firm does not allocate a fixed limit on investments in any country or region, Mr Lim said, noting: 'Every region competes for our capital in a way that changes reflect where we have found more or less opportunities.'
The asset mix also changed, with the equities share of GIC's portfolio rising from 46 per cent to 51 per cent over the year, while fixed income made up 26 per cent, down six percentage points.
Real assets accounted for 23 per cent, up slightly from 22 per cent.
Meanwhile, the volatility of GIC's monthly returns clocked in at around 7 per cent over both the previous five and 10 fiscal years.
It noted that this medium-term consistency was delivered despite growing uncertainty in trade, geopolitics and global economies, which have in turn increased market volatility.
Mr Lim and GIC group chief investment officer Bryan Yeo said artificial intelligence development, climate change and a shifting world order are among what the firm deems 'foundational' changes.
Such changes, they said, are to be distinguished from both cyclical shifts and 'structural' changes such as in demographics for which long-term plans can be made.
Mr Lim said GIC aims to deliver long-term returns while avoiding 'permanent loss' by leaning on diversification, being agile and what it calls granularity in its investment strategy.
Providing one example of this granularity, Mr Yeo said GIC classifies potential AI investments into three value-creating categories: enablers, monetisers and adopters.
Enablers are companies that build infrastructure to scale up AI usage, such as data centres, in which GIC started investing a decade ago.
Monetisers are firms that create and sell AI-infused products. 'They tend to be more of the start-ups that have found a niche and are creating new products through AI capabilities,' Mr Yeo said.
Adopters are generally large, established companies across various sectors that are integrating AI into their processes.
'Granularity is about looking two, three layers deeper, and being deliberate about how we allocate and how we reinvest proceeds from divestments,' Mr Yeo said.
Mr Yeo did not rule out divesting holdings in established players that are at high risk of losing out to competitors in AI adoption.
He warned that it is too early to tell which sectors and companies specifically need divestment, but acknowledged that any success for monetisers and adopters will come at the expense of other companies.
AI is making its presence felt at GIC itself in the form of a chatbot being trialled in its real estate and fixed income teams to analyse investment reports to find gaps and highlight salient questions.
This shows how GIC is applying technology in the heart of its business, but with caution, Mr Lim said.
The energy sector is another example of the granular approach.
Though GIC finds attractive opportunities, especially in the electrification and energy efficiency segments, Mr Yeo said there are 'fragmented investment trends across different regions'.
For instance, natural gas will continue to play a key role in the US over the medium term, but renewables remain well positioned in Europe, China and India.
Mr Lim responded to questions about GIC's sustainability efforts by reiterating the firm's goal to help the 'real world' to transition.
'Rather than for us to almost artificially change our portfolio composition just to show less carbon intensity, we believe it is more important that our effort, not just in capital provision but also in our engagement with companies, would help the real-world transition.'
Mr Yeo added that GIC is set apart by its long-term approach, which allows investing in promising sustainable technologies and companies that it sees a significant need for, even if risk premiums are high at that point.
Mr Lim also turned to the weaker greenback, noting that while the US dollar accounts for a significant part of GIC's currency exposure, the firm's portfolio is diversified among many other dimensions besides currency to ensure it can beat global inflation.
Mr Yeo added: 'If you look at US companies, many of them are large successful (multinational corporations) and... a good part of their revenue is actually derived overseas.
'So, if we were to have a scenario that the dollar is going to be weaker, their revenues and profits are actually going to go up because the foreign earnings from stronger currencies would translate to more US dollar revenue and earnings.'
The Straits Times also asked Mr Lim about concerns raised in Michigan about GIC's ownership of 218,000ha of forested land, amounting to around 5 per cent of the total land area of the US state's Upper Peninsula.
Mr Lim cited GIC's longstanding policy to decline comment on specific investments, but added: 'I would say GIC is welcome everywhere in terms of our investment, and on our part, we make sure all our investments are in compliance with laws and regulations, and that we adopt... practices that are consistent with (the) market.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
27 minutes ago
- Straits Times
New movement to help Singapore lawyers with their mental health and the profession's sustainability
Sign up now: Get ST's newsletters delivered to your inbox Chief Justice Sundaresh Menon said the movement represents a collective commitment to ensure that lawyers remain in the profession. SINGAPORE – A movement to help lawyers to eliminate unnecessary stresses in their job, promote work-life balance, and foster healthier and sustainable workplace culture was launched on July 29. The Mindful Business Movement was launched on July 29 during the Legal Profession Symposium 2025. Speaking at the symposium that was held at Parkroyal Collection Pickering, Chief Justice Sundaresh Menon said the movement represents a collective commitment to ensure that lawyers remain in the profession. He said: 'The Mindful Business Movement aims to drive awareness and adoption of the sustainability principles , support their practical implementation in legal workplaces and promote the mental health and well-being of members of the profession.' Under the movement is a set of sustainability principles developed in response to feedback gathered during various focus group discussions that would be disseminated to law firms. Th e principles include having smart meetings and communications which advocate that meetings are planned properly and run efficiently, and supporting rest and growth, where firms are urged to provide mental wellness resource s. They are also told to set aside protected time for training and mentoring. Another principle is mindful delegation, which entails providing junior staff with clear instructions that include sufficient context, and setting deadlines that are realistic, transparent and appropriately negotiable. Top stories Swipe. Select. Stay informed. Singapore Grace Fu apologises for Tanjong Katong sinkhole, says road may stay closed for a few more days Singapore Terrorism threat in Singapore remains high, driven by events like Israeli-Palestinian conflict: ISD Singapore Liquidators score victory to recoup over $900 million from scammer Ng Yu Zhi's associates Singapore Man on trial for raping woman who hired him to repair lights in her flat Sport IOC president Kirsty Coventry a 'huge supporter' of Singapore Singapore 7, including child and firefighter, taken to hospital after fire breaks out in Toa Payoh flat Singapore S'pore can and must meaningfully apply tech like AI in a way that creates jobs for locals: PM Wong Singapore Doctor who forged certificates for aesthetic procedures gets 4 months' jail CJ Menon said the Singapore Academy of Law (SAL) will develop a five-step guide to flesh out the sustainability principles. The Mindful Business Movement was launched in partnership with various groups, including SAL and Britain- based Mindful Business Charter. In an interview with The Straits Times on July 22, SAL chief executive Yeong Zee Kin said the goal of the Mindful Business Movement is to inculcate workplace practices that can lead to sustainable legal careers. Singapore Academy of Law chief executive Yeong Zee Kin said the goal of the Mindful Business Movement is to inculcate workplace practices that can lead to sustainable legal careers. ST PHOTO: LIM YAOHUI Elaboratin g on mindful communication, Mr Yeong pointed to boundaries in the workplace and that bosses should consider if an issue is urgent before sending an e-mail or message to their subordinates over the weekend or after work hours. If the matter is urgent, the boss should explain why it is so, he said. 'Being a bit more mindful and smart in the way we communicate – that's actually an important aspect,' he added. The Mindful Business Charter, which was launched in 2018, was founded by Barclays Bank and two of its panel law firms. It now has 140 signatories, including businesses outside the legal sector. The charter's chief executive officer, Mr Richard Martin, used to be a lawyer but left the profession to join the field of workplace culture after he recovered from a serious mental breakdown that occurred in 2011. He told ST that the charte r began with conversations about the mental health crisis faced by the legal practitioners , and that while there have been efforts to raise awareness about the issue and support those struggling , there was little discussion about the causes in the workplace. Mr Martin said that in the legal profession, there is a mindset that lawyers need to do everything their clients ask for and to do it as quickly as possible, at the expense of their own well-being . 'I think that is certainly very present in Singapore as it is in other parts of the world, and it's not an easy mindset to change,' he said, adding that employers and lawyers need to be more caring of themselves and each other. Meanwhile, to help address young litigato rs' disillusionment about a lack of opportunities, CJ Menon said the courts' practice directions will be amended to provide junior litigators with a greater role in oral advocacy. Among these changes, junior assisting counsel in hearings in the Court of Appeal, the Court of Three Judges and the Appellate Division, as well as appeals in the General Division of the High Court, will now be 'ordinarily expected' to make part of the oral submissions. Said the chief justice : 'It is our hope that these changes will make a concrete and meaningful difference to our young litigators. 'But for these initiatives to achieve their intended outcomes, we will need our senior colleagues to embrace them in the right spirit, and to convince their clients that it is ultimately in their interests for certain advocacy tasks to be delegated to junior counsel because it reduces legal costs and allows lead counsel to focus on the main advocacy tasks at hand.'
Straits Times
27 minutes ago
- Straits Times
Liquidators score victory to recoup over $900 million from scammer Ng Yu Zhi's associates
Sign up now: Get ST's newsletters delivered to your inbox Court documents state that Ng's three companies received about $1.09 billion, US$277.2 million and €980,000 (S$1.4 million) in investor funds. SINGAPORE - The liquidators for three companies of Ng Yu Zhi, the alleged nickel-trading fraudster at the centre of a $1.5 billion nickel trading scam, scored a legal victory on July 29 to recover more than $900 million from nine former directors and employees for their role in Singapore's biggest Ponzi scheme. In 2021, the liquidators of Envy Asset Management (EAM), Envy Global Trading (EGT) and Envy Management Holdings (EMH) sued Ng, former directors Lee Si Ye and Ju Xiao, and former employee Cheong Ming Feng. Court documents state that Ng's three companies received about $1.09 billion, US$277.2 million and €980,000 (S$1.4 million) in investor funds, supposedly for nickel trading. Of those sums, $593 million, US$192.2 million and €880,000 remain outstanding to investors. In a 180-page judgment issued July 29, the liquidators, who are represented by lawyers Daryl Fong and Lin Ruizi of Shook Lin & Bok, were awarded damages after Ms Lee, Mr Ju and Mr Cheong were found to have breached their duties as directors. They also received damages for fraudulent trading by Mr Ju. The trio were also ordered to pay back about $27 million in commission payments, profit sharing, bonuses, CPF payments, directors' fees and dividends. The High Court, however, ruled that the July 29 judgment is 'not binding' on Ng, who was made bankrupt in December 2022. Civil proceedings against the former managing director of EGT and EAM stopped as a result. Ng's criminal trial on 42 charges ended on July 7 after he opted not to take the stand. He had faced a total of 108 charges over offences including cheating, forgery, fraudulent trading, money laundering and criminal breach of trust. In awarding damages to the liquidators, High Court Judicial Commissioner Mohamed Faizal found that the nickel trading scheme did not exist and none of the investors' monies were used to buy nickel from Poseidon Nickel. This is the Australian firm that Ng claimed to have bought nickel from. Instead the funds were transferred to Ng through Envy Asset Management Trading (EAMT), paid as directors' fees to Ng and Ms Lee, and as commission payments, profit sharing fees to the defendants and other employees. The funds were also used to pay referral fees or 'profits' in excess of the invested principal to investors; and transferred or paid to other companies owned by Ng or his Envy companies, the judicial commissioner found. The High Court also found that the Envy companies were 'hopelessly insolvent and unable to pay their debts. Neither EGT nor EMH had any legitimate, revenue-generating business and there was no other meaningful business undertaken by the Envy companies.' There was also 'compelling evidence of the shocking level of ineptitude and nonchalance' on the part of Ms Lee, who allegedly helped Ng cover up details of fraudulent transfers of $416.5 million and US$17.7 million to his own bank accounts under false pretences, according to the ruling. She was found to be 'grossly negligent' but 'did not have actual knowledge' of the Ponzi scheme as she herself was being duped by Ng, with her own family members and loved ones also invested in the scheme, the judicial commissioner pointed out. As for Mr Ju, the High Court found that he was in breach of his directors' duties and liable for fraudulent trading, among other things. 'That he was willing to forge documents, fraudulently change the paid-up capital sums for EGT and mislead investors ... spoke to his entire approach to his role as a director and employee of the company. These actions also reflect his willingness to be complicit in whatever he was asked to do. This made a mockery of his duties as a director of EGT,' the judicial commissioner said. Mr Cheong, the ex-employee, knew that he was creating forgeries, and also became aware that these were being circulated to both internal employees and external investors, but the High Court found that he did not know that such actions were being done to prop up a sham scheme. For one thing , Mr Cheong was 'not particularly sophisticated and possessed a rather rudimentary understanding of the business'. His own investments 'started even before he joined the Envy companies and he had assisted some of his friends to do the same, which suggests that he himself bought into the logic of the purported nickel trading,' the judicial commissioner said. Regardless of whether Ms Lee, Mr Ju or Mr Cheong had knowledge of the Ponzi scheme, they were still ordered to return most of the monies they had received from the Envy companies. In a separate 62-page judgment released July 29, the High Court ordered six other former employees of the Envy companies to cough up more than $42 million in fictitious profits, commission payments, profit sharing and referral fees paid to them. This award is subject to a deduction of income tax payments made by these six employees. Former employees Lau Lee Sheng, Benjamin Teo Wei Wen, Ms Shen Xuhuai, Koh Hong Jie (Xu Hongjie), Guo Yujia and Jordan Chua Wei Jian were named defendants in this suit brought by the liquidators. The High Court allowed the liquidators to claw back monies paid to them after finding that the Envy companies 'were never under any obligation to pay the commission payments and profit sharing payments to the defendants because the (companies) never made any actual profit.'
Straits Times
27 minutes ago
- Straits Times
IMF says will have to see how US trade deals are unfolding
Sign up now: Get ST's newsletters delivered to your inbox Tariffs agreed so far in those deals were similar to the effective US tariff rate on which the IMF based its latest assumptions on. WASHINGTON - The International Monetary Fund said it was carefully looking at the details of the trade agreements the United States has struck with Japan and the European Union in recent days to assess their economic impact. 'We will have to see how things are unfolding,' said Mr Pierre-Olivier Gourinchas, chief economist and director of the IMF's Research Department, adding that the trade agreements announced thus far were high-level deals that still needed to be fleshed out. 'We'll have to see whether these deals are sticking, whether they're unraveled, whether they're followed by other changes in trade policy.' However, tariffs agreed so far in those deals were similar to the effective US tariff rate on which the IMF based its latest assumptions in its update to the World Economic Outlook published on July 28, Mr Gourinchas added. REUTERS
