GIC and Temasek face a tougher investing climate. What are they doing about it?

BOTH sovereign wealth fund GIC and state investor Temasek Holdings are key contributors to Singapore’s net investment returns, which is why their results are so closely scrutinised every year.

GIC’s numbers, which were released on Wednesday (Jul 24), show that its annualised real rate of return for the 20 years ended Mar 31, 2024, came in at 3.9 per cent. As it takes a long-term view of the reserves and needs to account for the effects of inflation, this 20-year real rate of return is the main performance metric.

Temasek’s numbers were announced earlier in July. Its portfolio delivered a total shareholder return of 7 per cent for the same 20-year period while Singapore’s core inflation was 1.9 per cent.