Singapore's Government of Singapore Investment Corporation (GIC) reported a decline in its long-term investment performance, with the annualised real return for the 20-year period ending March 31 falling to 3.4%.
The sovereign wealth fund attributed the softer results to heightened global market volatility driven by ongoing geopolitical conflicts and the implementation of new trade tariffs.
6%. While this figure reflects the absolute growth of the portfolio, the adjustment for inflation reveals the tighter margins investors are facing in the current macroeconomic environment.
The fund's annualised nominal return in US dollars for the same two-decade span stood at 5.6%.
While this figure reflects the absolute growth of the portfolio, the adjustment for inflation reveals the tighter margins investors are facing in the current macroeconomic environment.
The drop in real returns underscores the challenge of preserving purchasing power amidst persistent price pressures and market instability.
GIC highlighted that the recent escalation of tensions in the Middle East, particularly involving the US and Iran, has significantly disrupted global equity markets.