ST July 12, 2006Gasp ... This is shocking. 8.2 per cent returns p.a. over 25 years? That is a dismal performance. No wonder they have been so secretive all these years.
GIC sees 9.5% annual return over 25 years
By Bryan Lee
SINGAPORE has revealed for the first time how the investments of its financial reserves have performed.
On average, a return of 9.5 per cent in US dollars was made each year for the past 25 years. In Singapore dollars, the yearly return was 8.2 per cent.
In real terms, after working in global inflation, the rate works out to 5.3 per cent. These figures on the performance of the Government of Singapore Investment Corporation (GIC) up to March 2006 were made public yesterday by Minister Mentor Lee Kuan Yew.
Describing the results as 'good' he said they show that the GIC has fulfilled its mandate of preserving the international purchasing power of Singapore's reserves. 'Indeed, the GIC has significantly enhanced the value of our savings,' he added.
MM Lee, who has been GIC chairman since its inception in 1981, was speaking at its 25th anniversary dinner at the Ritz Carlton hotel, attended by about 750 of its staff and directors as well as former employees.
I doubt if the local press will tell you that. But anyone who knows anything about investing knows that it is a very fair statement to say that GIC's performance is dismal. Well, I shan't say more. In a few days' time, we'll check again and see what the international press has to say.
"Gosh ... they get all that CPF money rolling in every month from all the working citizens of Singapore ... and they still perform about 3 times worse than me!"- Warren Buffett.