How are you measuring up with your investment return? (3)

Read? How are you measuring up with your investment return? (2)

SINGAPORE: The Government of Singapore Investment Corporation (GIC) sees a challenging investment outlook for the medium term.

In its annual report, GIC says investment returns are likely to be low until the global economy returns to balanced and sustainable growth.

GIC reiterates that its investments are for the long term.

For the financial year ended March 2012, the sovereign wealth fund says its 20-year annualised real rate of return remained at 3.9 percent, unchanged from the previous year.

This was partly attributed to positive returns from bonds and real estate.

The tough investment climate also saw GIC reducing its exposure to public equities to 45 percent, and increased its allocation to cash to 11 percent.

Over the same period, the allocation to bonds was cut to 17 percent.

Exposure to alternatives, which includes real estate and natural resources, remained roughly the same at 27 percent.

Meanwhile, as a measure of its ongoing performance, GIC reports 5-year annualised return at 3.4 percent while the 10-year return was 7.6 percent.
- CNA/de