Singapore's sovereign wealth fund GIC recorded its weakest five-year return since 2013, posting an annualized nominal return of 3.7% for the period ending March 31. This was influenced by a slowing global economy and the anticipated full impact of rising interest rates. Despite this recent underperformance, the fund's 20-year real return saw an uptick, reaching an eight-year high of 4.6% after moving beyond the market slump of fiscal year 2003.
GIC, which is estimated by the Sovereign Wealth Fund Institute to manage assets worth $690 billion, does not publicly disclose its one-year results or its total assets under management.
Separately, other reports indicate GIC's 20-year annualised real return dipped to 3.8% for the year ended March 31, 2025, a five-year low, and its weakest performance since 2020 when returns were 2.7%. Its nominal USD return for the 20-year period was 5.7%. For the 10-year period, the nominal return was 5%, and for the five-year period, it was 6.1% in USD terms. The fund attributes current market conditions to higher starting valuations, rising interest rates, and uncertain growth prospects, expecting lower returns over the next 10 to 20 years.
GIC's portfolio composition at the end of the last financial year shows equities increased to 51% from 46% a year ago, while fixed income decreased to 26% from 32%. Real assets remained stable at 23%. The United States continues to be GIC's largest market for capital deployment, accounting for 49% of its portfolio, up from 44% the previous year. Asia Pacific's share dropped from 28% to 24%. Despite potential tariff policies, GIC maintains confidence in the US market due to its robust innovation and diversified revenue sources of US firms.
