What has been GICs performance to date?
GIC’s investment results have been good. Over a period of 25 years to March 2006, the annual rate of return on the foreign reserves managed by GIC averaged 9.5% in US dollar terms, and 8.2% in Singapore dollar terms. The average rate of return over global inflation was 5.3% per annum. GIC has fulfilled its mandate of preserving the international purchasing power of our reserves and GIC has significantly enhanced the value of Singapore’s savings. GIC measures its performance in several ways. Firstly, GIC has a wealth enhancement objective, which is to achieve a real rate of return over and above G3 inflation, the weighted average inflation rate of the United States, Japan and the European Union. Since inception, GIC has met this objective. In addition, GIC benchmarks the performance of its investment groups against the relevant industry indices. For instance, the Morgan Stanley Capital International (MSCI) World Equity Index for equities and an enhanced Lehman Brothers World Bond Index
