Long-term Real Return

INVESTMENTS AT A GLANCE

Long-term Real Return

(As of 30 June 2021)

*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 (%) 25.0 14.1 11.3 11.0 7.7 7.0 7.5 7.5 8.7
US CPI (%) 5.4 3.0 2.5 2.4 1.9 2.0 2.1 2.2 3.9
Real Return (Inf. Adj.) (%) 18.6 10.8 8.5 8.4 5.7 4.9 5.3 5.2 4.6
Excess Return vs. 3.5% 14.6 7.0 4.8 4.7 2.2 1.4 1.7 1.6 1.1

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)