- GIC's 20-year annualised real return fell to 3.4% for FY2025/2026, marking the lowest level in six years, as it prioritized resilience amid 'profound uncertainty'.
- GIC is extending its AI-related investment focus beyond semiconductor companies and AI developers to include firms that can leverage the technology to maximize corporate value, according to its chief executive.
- CEO Lim Chow Kiat stated that the winners in the investment landscape will be those who can 'successfully transform themselves' by leveraging AI.
- GIC's nominal return before adjusting for global inflation was 5.6%, and it uses a rolling 20-year metric to measure average annual returns.
- GIC plans to deploy an additional US$30 billion into hedge funds over the next three years, building on investments that have tripled over the past decade.
- GIC's investment strategy is influenced by the changing world order, rising fiscal risks, and advances in artificial intelligence.
Singapore's GIC is adapting its investment strategy to focus on companies that leverage artificial intelligence, moving beyond traditional sectors like semiconductors. CEO Lim Chow Kiat stated that the winners will be those who can "successfully transform themselves" by utilizing AI.
In its 2025/2026 annual report, GIC reported a 20-year annualised real return of 3.4%, the lowest since FY2019/2020, reflecting a cautious approach amid global uncertainties. The fund's returns have declined for three consecutive years, attributed to a strategy prioritizing resilience and diversification over risk-taking.
Before adjusting for global inflation, the nominal return was 5.6%. GIC employs a rolling 20-year metric to assess performance, covering the period from April 2006 to March 2026.
Lim emphasized that this approach, while moderating returns, aligns with GIC's long-term mandate, providing greater downside protection and flexibility to seize emerging opportunities. GIC plans to invest an additional US$30 billion into hedge funds over the next three years, building on a decade of tripled investments.
The fund also highlighted the impact of a changing world order, rising fiscal risks, and advancements in AI as key factors shaping the investment landscape and influencing portfolio returns.
“GIC CEO Lim Chow Kiat said winners will be those who can 'successfully transform themselves' by leveraging AI, as the sovereign wealth fund plans to deploy an additional US$30 billion into hedge funds over three years. GIC also refreshed its investment framework to be more flexible amid what it called a 'fundamentally changed' world.”
