7/27/2026
What is the true return of 3.4% annualised profit?
SINGAPORE: Sovereign wealth fund GIC's returns fell for a third straight year to a six-year low in FY2025/2026, as it took less risk and prioritised resilience amid what it called "profound uncertainty".
GIC also announced it will refresh its investment framework to be more flexible as it navigates what CEO Lim Chow Kiat called a "fundamentally changed" world.
In its 2025/2026 annual report released on Friday (Jul 24), GIC said its 20-year annualised real rate of return stood at 3.4 per cent, down from 3.8 per cent the year before and the lowest since FY2019/2020's 2.7 per cent.
Before adjusting for global inflation, the 20-year annualised nominal return was 5.6 per cent.
GIC uses a rolling 20-year metric, which measures average annual returns over the most recent two decades, as its primary performance indicator. This year's figure covers April 2006 to March 2026, after FY2004/2005 was dropped and FY2025/2026 added. CNA
GIC also announced it will refresh its investment framework to be more flexible as it navigates what CEO Lim Chow Kiat called a "fundamentally changed" world.
In its 2025/2026 annual report released on Friday (Jul 24), GIC said its 20-year annualised real rate of return stood at 3.4 per cent, down from 3.8 per cent the year before and the lowest since FY2019/2020's 2.7 per cent.
Before adjusting for global inflation, the 20-year annualised nominal return was 5.6 per cent.
GIC uses a rolling 20-year metric, which measures average annual returns over the most recent two decades, as its primary performance indicator. This year's figure covers April 2006 to March 2026, after FY2004/2005 was dropped and FY2025/2026 added. CNA
What is this thing called 20 year annualised real rate of return? In simple term, it means averaging the returns over a 20 year period, to smoothen the ups and downs. There can be a 20% growth in some years, 0 growth or negative growth in some years, the 20 year spread will show maybe a 2 or 3% growth every year. What does this mean to the statistics of growth? Flat, little changes. Big gains will show as small gains, big losses can still be small gains or small losses.
The effect is that the fund will not have to face criticism for big losses or to gloat for big gains over an exceptional year. Would this impact the bonuses of the fund managers? If the bonuses are computed using the same 20 year annualised formula, the fund managers would not be seeing big bonuses or negative bonuses. It will average out as well. The fund will not have to pay big bonuses for one year and crawl back for big losses the next, meaning the bonuses will also be averaged out. This will be a weak point for attracting top fund managers or gamblers that want short quick returns and big bonuses, even cooking the books to show big gains in one year but losses for a few years.
What is a 3.4% annualised growth? If the fund had good growth in the first 10 years, like 10% or 20%, and chalking an annualised 3.4% growth over 20 years, what would be the growth rate of the last 10 years? Another simplified example, if the first 10 years, the fund's average annual growth was 10%, and the last 10 years, the average annual growth was 0%, the 20 year annualised growth of the latest year would be 5%, despite having no growth for the last 10 years. The pros and cons of using a 20 year annualised growth are obvious. Is there any country other than Singapore using a 20 year annualised growth formula?
Clown Trump continues with his frivolous claims about Iran
Trump, ever the political charlatan, is again up at his childish and Ignorant ranting, making suggestive claims that Iran will need twenty years to rebuild after all the damage the USA had done. Trump cannot even do something about his 24-hour fictitious claim about ending the Ukraine War and wants to talk about a twenty-year timeline regarding Iran. Trump has not even succeeded in taking out Iran's missiles and drones, not to talk about his massive damage to the Iranians. All the talk about having taken out Iran's air force, navy and missile launches were all just hubris.
Trump is now boasting about countering the Houthis closure of the Bab Al-Mandab. He is not even capable of doing the necessary about the Strait of Hormuz and thinks he can prevent the blockade of the Bab Al-Mandab.
How many times have we heard the man making frivolous prophecies that are miles away from reality. The man just ran his mouth like having verbal diarrhea, never understanding what he is vomiting all the time.
The war in Ukraine was supposed to end 24 hours after he took office in 2025, according to his loud boasting. It is now four years into the Ukraine War with no end in sight. All that we have are loose claims that the war is going to end soon. How soon?
Then there is the other war against Iran which he boasted will be over within 4 to 5 days. That stretched to more than four months and still counting. Every day, he is carrying out wonderful negotiations and closing up deals that never materialized.
How could the USA, a superpower at that, have such a leader who is a loose cannon that no one else can ever compare with.
Anonymous
Trump is now boasting about countering the Houthis closure of the Bab Al-Mandab. He is not even capable of doing the necessary about the Strait of Hormuz and thinks he can prevent the blockade of the Bab Al-Mandab.
How many times have we heard the man making frivolous prophecies that are miles away from reality. The man just ran his mouth like having verbal diarrhea, never understanding what he is vomiting all the time.
The war in Ukraine was supposed to end 24 hours after he took office in 2025, according to his loud boasting. It is now four years into the Ukraine War with no end in sight. All that we have are loose claims that the war is going to end soon. How soon?
Then there is the other war against Iran which he boasted will be over within 4 to 5 days. That stretched to more than four months and still counting. Every day, he is carrying out wonderful negotiations and closing up deals that never materialized.
How could the USA, a superpower at that, have such a leader who is a loose cannon that no one else can ever compare with.
Anonymous
Iran should have nuclear weapons long ago and not be attacked by the American terrorists
North Korea or even China without their Nuclear Arsenals long time ago been invaded and trampled upon by the White Barbarians and Savages Hyenas and Wolves in their Gang Up usual Behaviours
It's like a man holding a knife facing one with a gun.
For that matter even a little child or a woman with a gun pointing at a man has also the idiot dripping urine in his pants.
Iran should have his Nuclear Long ago and thence no such Destructions in so many unnecessary countries in the M.E.
Think Israel dared to provoke them.?
Iranians with the North Koreans are willing to die together who's dared to invade them.
Likewise the PRCs who had enough of the bullying and provocations from all these Scavengers and Locusts.
Take the case of the Indonesian fiasco where the PRCs are even willing to lose monies to protect Chinese Character and Honour as Man of Words, tore down every part of the Investments of their Assets and preferred even to dump into the Seas rather than have them seized by these Loose Scoundrels who do not kept their side of bargains.
Anyway, history already classified the various types of Races which are the Chow Kar and lazy ones with no backbones and those who are more Honourable.
Why the Whites hates the Chinese so much?
It's because they are just too afraid of the Chinese capabilities and have their wild instincts and damn mentalities of bullying and robbing others thinking that the Chinese would do the same.
Thet are a Race of indulgence, decadence lifestyles of pleasures and sloths.
Virgo49
It's like a man holding a knife facing one with a gun.
For that matter even a little child or a woman with a gun pointing at a man has also the idiot dripping urine in his pants.
Iran should have his Nuclear Long ago and thence no such Destructions in so many unnecessary countries in the M.E.
Think Israel dared to provoke them.?
Iranians with the North Koreans are willing to die together who's dared to invade them.
Likewise the PRCs who had enough of the bullying and provocations from all these Scavengers and Locusts.
Take the case of the Indonesian fiasco where the PRCs are even willing to lose monies to protect Chinese Character and Honour as Man of Words, tore down every part of the Investments of their Assets and preferred even to dump into the Seas rather than have them seized by these Loose Scoundrels who do not kept their side of bargains.
Anyway, history already classified the various types of Races which are the Chow Kar and lazy ones with no backbones and those who are more Honourable.
Why the Whites hates the Chinese so much?
It's because they are just too afraid of the Chinese capabilities and have their wild instincts and damn mentalities of bullying and robbing others thinking that the Chinese would do the same.
Thet are a Race of indulgence, decadence lifestyles of pleasures and sloths.
Virgo49
Houthis targeting Saudi Arabia or American terrorists
In the face of the USA's escalation against Iran, the Bab Al-Mandab is now closed to Saudi oil exports. That is going to bring Saudi Arabia to its knees, thinking that it could work around the Strait of Hormuz by using the Red Sea for its oil exports.
Saudi Arabia fought a war against the Yemen Houthis before, from 2015 to 2022, with USA support, while the Houthis were supported by Iran. There is really no love lost between the two countries. That peace deal between Saudi Arabia and Iran brokered by China provided some temporary relief to stop Iran from aiding the Houthis. That is going to end for sure. Closing the Bab Al-Mandab to Saudi vessels is telling. It is a direct and intentional hit against Saudi Arabia. The Gulf States can talk until the cows come home about countering the move by the Houthis. They had better put their resources trying to protect what they still have around the Persian Gulf.
Anonymous
Saudi Arabia fought a war against the Yemen Houthis before, from 2015 to 2022, with USA support, while the Houthis were supported by Iran. There is really no love lost between the two countries. That peace deal between Saudi Arabia and Iran brokered by China provided some temporary relief to stop Iran from aiding the Houthis. That is going to end for sure. Closing the Bab Al-Mandab to Saudi vessels is telling. It is a direct and intentional hit against Saudi Arabia. The Gulf States can talk until the cows come home about countering the move by the Houthis. They had better put their resources trying to protect what they still have around the Persian Gulf.
Anonymous
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