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GIC reports weakest 20-year investment growth in four years at 3.9%

GIC expects lower returns amidst US monetary policies, China property market challenges, and geopolitical tensions.

Singapore’s sovereign wealth fund GIC reported a 3.9% rise in annualized real returns and a 5.8% rise in nominal returns as of 31 March.

This return rate covers inflation from April 2004 to March 2024.

This represents the weakest investment growth in four years, due to high interest rates, economic challenges in China, and geopolitical tensions.

GIC said that the global investment environment will continue to be threatened by US monetary policies, China’s property market challenges, and geopolitical tensions. 

In addition, medium-term return prospects remain low and risk-reward less favourable due to elevated valuations across many risk assets, particularly in developed markets.

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