GIC Private Limited - International Forum of Sovereign Wealth ...

GIC was incorporated in 1981 under the Singapore Companies Act and is wholly owned by the Government of Singapore to manage Singapore's reserves. Skiptomaincontent GICPrivateLimited FullMemberSingapore Incorporation GICwasincorporatedin1981undertheSingaporeCompaniesActandiswhollyownedbytheGovernmentofSingaporetomanageSingapore’sreserves.Thegovernmentistheownerofthesereserves. Sourceandpurposeoffunds ThesourcesoffundsincludeproceedsfromtheissuanceofSingaporeGovernmentSecuritiesandSpecialSingaporeGovernmentSecurities,GovernmentbudgetsurplusesandproceedsfromtheGovernment’slandsales.GIC’smissionistoachievegoodlongtermreturnstopreserveandenhancetheinternationalpurchasingpowerofthesereserves.UndertheConstitution,theGovernmentisallowedtospendupto50%ofthelong-termexpectedrealreturnonthenetassetsmanagedbyGICandthoseownedbytheMonetaryAuthorityofSingaporeandTemasekHoldingsinitsannualBudget.ThiscontributionhasallowedtheGovernmenttomakefurtherinvestmentsforthelongterm.TheseincludesupportingSingapore’stransformationintoavibrantandinnovativeeconomy,fosteringacaringandcohesivesociety,andensuringafiscallysustainableandsecurefuture. Governance TheGovernment,representedbytheMinistryofFinance(MOF),mandatesGICtomanageallassetsinasinglepool,onanunencumberedbasisandwithoutregardtotheirsource,withtheobjectiveofachievinggoodlong-termrealreturns.TheGovernmentgivesGICaninvestmentmandatethatstipulatesthetermsofappointment,investmentobjectives,investmenthorizon,riskparametersandinvestmentguidelinesformanagingthereserves.Inparticular,theoverallriskpreferenceofthefundsmanagedbyGICischaracterisedbytheReferencePortfolio. TheGovernment,representedbytheMinistryofFinance,holdstheGICBoardaccountablefortheoverallportfolioperformance.ItdoesnotdirectorinfluenceGIC’sdecisionsonindividualinvestments. GICisadditionallyaccountabletothePresidentofSingapore,whoiselecteddirectlybySingaporeansandactsinhisdiscretionandindependentlyoftheGovernmentofSingapore.ThePresidentisempoweredundertheConstitutionofSingaporetoprotectthepastreservesofthenation.AsaFifthSchedulecompany,GICisdirectlyaccountableinanumberofkeyareastotheSingaporePresident.NoonemaybeappointedtoorremovedfromtheGICBoardwithouthisconcurrence.Thisadditionallayerofcontrolensuresthatthecompanyappointsonlypeopleofintegritywhoarecompetentandcanbetrustedtosafeguardtheseassets. TheGICBoardisresponsiblefortheGIC’sPolicyPortfoliowhichdeterminesthelong-termassetallocationstrategyandaccountsforthebulkoftheriskandreturnpotentialoftheGICPortfolio.GIC’sassetallocationoperateswithintheriskconstraintsdeterminedbytheGovernmentinitsmandatetoGICandrepresentedbytheReferencePortfolio. GICmanagementformulatesandexecutesinvestmentstrategies.Oncethelong-termassetallocationstrategy(assetoutinitsPolicyPortfolio)isdecidedbytheGICBoard,themanagementseekstoaddvaluethroughanoverlayofactive,skill-basedstrategies(i.e.ActivePortfolio).Themanagementstructureisrelativelyflatandcomprisesfourcommitteeswithclearreportinglinesandaccountability. Reportingandaudit GICprovidesmonthlyandquarterlyreportstotheGovernmentthroughtheAccountant-GeneralofSingapore.Thesereportslistthefinancialtransactions,aswellastheholdingsandbankaccountbalances.Thereportsalsoprovidedetailedperformanceandriskanalytics,aswellasthedistributionoftheportfoliobyassetclass,countryandcurrency.Onceayear,theGICManagementformallymeetstheMinisterforFinanceandhisofficialstoreportontheriskandperformanceoftheportfoliointheprecedingfinancialyear. TheGovernmentportfolio,managedbyGIC,isauditedannuallybytheAuditor-GeneralofSingapore.TheAuditor-General,appointedbythePresidentofSingapore,submitsanannualreporttothePresidentandParliamentonhisauditoftheGovernmentandotherbodiesmanagingpublicfunds.Inaddition,GICisauditedbyGIC’sinternalaudit.Othercompaniesinthegroupandtheinvestmentholdingcompaniesareauditedbypublicaccountingfirms. Investmentandriskmanagement GICinvestsonlyforfinancialreturns.Ourstartingpointiswhenourclient,theSingaporeGovernment,setsitsrisktolerance.GICconstructstheportfoliotogenerategoodlong-termreturnswhileadheringtotherisktoleranceofourclient. OurcoreinvestmentgroupsunderpintheinvestmentorganizationatGIC:PublicEquity,FixedIncome,PrivateEquity&Infrastructure,andRealEstate.Inaddition,ourIntegratedStrategiesGroupevaluatesandinvestsincross-assetinvestmentopportunities.Weseparateactiveskill-based“alpha”strategiesfrombetaactivitiesatGICtoenablegreatereffectivenessandefficiency.Ourfocusforbetaactivitiesistoachievecostandoperationalefficiencies.Foralpha,ourfocusincludesenhancingcollaborationtotapGIC-wideexpertisetoaccessinvestmentopportunitiesandexecutemajorinvestmentswhicharenotstraightforwardintheirconstruction. WeareopentoinvestinginallcountriesoutsideofSingaporebutdonotinvestincountriesthataresubjecttoUnitedNationsSecurityCouncilsanctions.Weexerciseownershiprightsinourinvestmentstoprotectthefinancialinterestofourclient. IdentifyingandmanagingriskisacoreresponsibilityofallGICstaff.Eachemployeehasindividualaccountabilityandclearlydefinedresponsibilitieswithinariskmanagementframeworkwherechecksandbalancesareinplace.Thisensuresriskstakenareappropriateandin-linewiththerisktolerancesetbytheclient.Underpinningtheframeworkisarisk-consciousculturebuiltonanownershipmindsetanddisciplineinrisk-taking. GIC’sriskmanagementobjectivesaretoensure: Theinvestmentstrategiesareconsistentwiththerisktolerancesetbyourclient,theSingaporeGovernment; Policies,guidelinesandcontrolprocessesareinplacetoreducethelikelihoodofsignificantlosses; Anyreputationalimpactduetoouractionsiscarefullymanaged; Therisksassociatedwitheachinvestmentarewell-understoodandthatweareadequatelycompensatedfortakingthoserisks. DetailedinformationonGIC’sgovernanceframework,investmentprocesses,assetmix,andlong-termreturnsareavailableatwww.gic.com.sg. ContactDetails 168RobinsonRoad,#37-01CapitalTower Singapore068912 Singapore MemberWebsiteReadSelf-AssessmentReport BecomeaMember WewelcomeapplicationsformembershipfromSWFswillingtoendorsetheSantiagoPrinciplesonavoluntarybasis.Pleasecontactusat [email protected] formoredetailsand/orseepresentationbelow.   Download AboutUs Tweets Howaresovereignwealthfundsfinancingthe#EnergyTransition?ReadthelatestextractfromIFSWFDirect:https://t.co/KN8GRWUcvJ 2weeks1dayago RT@EthioInvHldgs:Accordingto@AndresSchipaniof@FinancialTimes"AddisAbabathismonthlaunchedafund,aimedatattractinginvest…https://t.co/n2aClrLdTd 2weeks2daysago Ourmonthlynewsletter,IFSWFDirectisouttomorrow!Signuptoreceiveexclusivecontenthere👉…https://t.co/Afre5jIBsD 2weeks5daysago