Strong asset performance amid the pandemic and exits through initial public offerings by portfolio companies boosted the fund’s performance.
GIC, whose investment performance is measured using a rolling 20-year real rate of return, posted an annualized USD nominal rate of return of 6.8 percent for the period that ended 31 March 2021, or 4.3 percent accounting for inflation, it said in the announcement. In 2015, it recorded a return of 4.9 percent.
Asia excluding Japan took up 26 percent of GIC’s portfolio, up from 19 percent a year earlier, while emerging markets comprised 17 percent, up from 15 percent. At the same time, its Japan exposure fell to 8 percent, from 13 percent the year before, according to its annual report. Its largest region by exposure continued to be the U.S., at 34 percent. The fund manages in excess of $100 billion in assets, though exact figures are not available.
GIC said it is cautious about the macro outlook in the long term, given rising inflation, elevated asset valuations, more fragile fundamentals in the global economy and less policy room.
Chow Kiat, GIC chief executive officer, said GIC is positive on the micro prospects, given new areas of growth that are driven by increasing emphasis on sustainability, accelerating technological transformation, and growing needs for businesses to reconfigure their supply chain.
Earlier this year, GIC opened its 11th office globally in Sydney, Australia, saying it would be seeking investment opportunities in the country.
The fund has also been loading up on crypto assets of late. So far this year, GIC has taken stakes in U.S. based digital asset bank Anchorage; BC Group, the parent company of regulated crypto exchange OSL; and blockchain analysis company Chainalysis.