Key facts
- Singapore's sovereign wealth fund GIC plans to allocate an additional $30 billion to hedge funds over three years.
- The allocation will focus on global macro, quantitative, and multi-strategy hedge funds.
- GIC reported a 20-year annualized real rate of return of 3.4% for the period ended March 31, 2026.
- The fund is diversifying AI investments across the entire value chain, not just AI developers.
- Equities represented 56% of GIC's portfolio as of March 31.
Singapore's sovereign wealth fund GIC plans to deploy an additional $30 billion into hedge funds over three years, focusing on global macro, quantitative, and multi-strategy funds that can adapt quickly to changing market conditions. This move comes as GIC reported its weakest 20-year annualized real rate of return since 2020, at 3.4% for the period ended March 31, 2026. Chief Executive Lim Chow Kiat stated this result reflects a deliberate strategy to take on less risk and focus on diversification. GIC manages a portion of Singapore's foreign reserves to preserve and grow their long-term purchasing power. Despite acknowledging potential hype and overvaluation in certain AI segments, GIC executives remain bullish on the sector's long-term prospects, diversifying investments across the entire AI value chain, including infrastructure, product development, and companies utilizing AI for operational improvements. The fund has also adopted a refreshed investment framework to enhance flexibility in capital allocation.