Long-term Real Return

INVESTMENTS AT A GLANCE

Long-term Real Return

(As of 31 March 2020)

*As described in paragraph 5 of the Investment Policy Statement (IPS): “The Fund’s current ‘Long-Term Investment Objective’ is to meet or exceed a 3.5% real rate of return (net of inflation, as measured by the US Consumer Price Index) in USD dollar terms annualized over the long term (15 years and longer)”.

1 Year 2 Years 3 Years 5 Years 10 Years 15 Years 20 Years 25 Years 50 Years
Nominal Return (%) -3.5 -0.6 3.8 3.9 5.5 5.5 4.9 6.8 8.3
US CPI (%) 1.5 1.7 1.9 1.8 1.7 2.0 2.1 2.2 3.9
Real Return (Inf. Adj.) (%) -5.0 -2.3 1.9 2.1 3.1 3.5 2.8 4.6 4.3
Excess Return vs. 3.5% -8.2 -5.6 -1.6 -1.4 0.2 0.0 -0.7 1.0 0.7

Note:
Nominal returns are annualized.
Nominal returns and the US-CPI are rounded off to the single decimal point.
Real returns are calculated using a geometric difference.
Excess of 3.5% is calculated using a geometric difference.
Quarterly numbers are provided with one quarter lag due to delays in obtaining valuations for Alternative Investments, Real Estate, and other Private Markets Investments.
Year-end numbers are up-to-date and usually available by end of April the following year.
(Data from independent Master Record Keeper)