GIC return 6.1% vs median pension fund 8.5%?

November 25, 2015

I refer to the article “Many unhappy returns” (The Economist, Nov 21).

Median pension fund return – 8.5%?

It states that “Over the past five years the median pension fund has earned an annualised return of 9.5% (in USD terms); over the past 25 years, the return has been 8.5%”.

GIC 20 years’ return – 6.1%?

According to the GIC’s 2014/2015 Report – “In nominal USD terms, the portfolio generated an annualised return of 6.1% over the 20 years ended 31 March 2015.

GIC’s 20-year nominal return was 6.1% per annum in USD terms, while that of the Reference Portfolio was 6.9%.

The GIC Portfolio returned 6.3% per annum in USD nominal terms over the 10-year horizon, and performed slightly better than the Reference Portfolio.

Over the last 5-year period, the GIC Portfolio returned 6.5% per annum in USD nominal terms.”

What do you think?

Leong Sze Hian

About the Author

Leong

Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional qualifications.