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GIC’s five-year return falls to 3.6% as bonds lag
GIC said its nominal five-year annualized return through March 31 slid to 3.6%, down from 6.1% a year earlier.
Singapore sovereign wealth fund GIC reported its lowest five-year annualized return in more than a decade, citing that bond holdings had not fully rebounded and that the strong 2021 rally no longer influenced its rolling performance. LiveMint Markets said GIC’s nominal five-year return through March 31 dropped to 3.6% from 6.1% a year earlier, the weakest result since 2013.
The fund attributed the weaker outcome to a tougher environment marked by high inflation, volatile markets, geopolitical uncertainty, and structural shifts that have made steady returns harder. According to LiveMint Markets, GIC also took less risk overall during the period, with its CEO noting that bonds were still affected by inflation episodes earlier in the five-year window.
GIC emphasized its longer-term focus, highlighting that its recently ended fiscal year delivered 5.6% nominal annualized returns and 3.4% after adjusting for inflation. LiveMint Markets added that GIC invests a large share of Singapore’s reserves outside the country.
In its latest annual report, GIC said the US remained its biggest investment market, with 53% of assets allocated to the Americas, up from 44% in 2024. LiveMint Markets reported that the increase was driven in part by higher public equity and AI investments in the US, while its Asia-Pacific allocation fell from 28% to 22% over the same two-year span.