GIC was incorporated in 1981 under the Singapore Companies Act and is wholly owned by the Government of Singapore. It was set up with the sole purpose of managing Singapore’s foreign reserves and currently invests well over US$100 billion globally in a wide range of asset classes and instruments. As a rule, GIC invests outside Singapore.

 

Source and Purpose of Funds

GIC is a fund manager for the Government, and does not own the assets that it manages. The sources of the Government’s assets managed by GIC, as stated by the MOF, include proceeds from the issuance of Singapore Government Securities (SGS) and Special Singapore Government Securities (SSGS), Government budget surpluses and proceeds from the Government’s land sales.

The Government does not specify to GIC the proportion of assets from each source. The Government mandates GIC to manage all assets in a single pool, on an unencumbered basis and without regard to their source, with the aim of achieving good long-term real returns. (An explanation of the Government’s framework for managing its assets and liabilities is available on the MOF’s website.)

Each year, the GIC Portfolio returns are tapped by the Government for its annual Budget and spent on key public services that improve the lives of Singaporeans. Under the Constitution, the Government is allowed to spend up to 50% of the long-term expected real return on the net assets managed by GIC and those owned by the Monetary Authority of Singapore and Temasek Holdings1 in its annual Budget.

The Government’s reserves therefore provide a stream of returns that benefit present and future generations of Singaporeans.

 

The President of Singapore

Since 1991, the Constitution of Singapore has provided for the President of Singapore to be elected directly by Singaporeans every six years. The President is independent of the Government and must not be a member of a political party.

The Constitution gives the President discretionary powers to protect the reserves not accumulated by a government during its current term of office. The system aims to prevent the government of the day from drawing on past reserves or spending reserves not accumulated during its current term in office.

As a Fifth Schedule company, GIC is directly accountable in a number of key areas to the Singapore President, who is empowered to access any information he needs to safeguard the country’s reserves. No one may be appointed to or removed from the GIC Board without his concurrence. This additional layer of control ensures that the company appoints only people of integrity who are competent and can be trusted to safeguard these assets.

 

The Government

The Government mandates GIC to manage Singapore’s foreign reserves with the aim of achieving good long-term real returns. The mandate sets out the terms of appointment, investment objectives, investment horizon, risk parameters and investment guidelines for managing the reserves. In particular, the expectation on the amount of risk GIC can bear is characterised by the Reference Portfolio.

The Government, represented by the Ministry of Finance, holds the GIC Board accountable for the overall portfolio performance. It does not direct or influence GIC’s decisions on individual investments.

GIC provides monthly and quarterly reports to the Government through the Accountant-General of Singapore. These reports list the financial transactions, as well as the holdings and bank account balances. The reports also provide detailed performance and risk analytics, as well as the distribution of the portfolio by asset class, country and currency.

Once a year, the GIC Management formally meets the Minister for Finance and his officials to report on the risk and performance of the portfolio in the preceding financial year.

 

The Auditor-General of Singapore

The Auditor-General, who is appointed by the President of Singapore, submits an annual report to the President and Parliament on his audit of the Government and other bodies managing public funds. This audit includes the Government’s portfolio managed by GIC and the main companies in the GIC Group - GIC Asset Management, GIC Real Estate and GIC Special Investments. These companies are also audited by GIC’s internal audit.

Other companies in the group and the investment holding companies are audited by public accounting firms.

 

The GIC Board

The GIC Board is responsible for the GIC’s Policy Portfolio which determines the long-term asset allocation strategy and for the overall performance of the portfolio. GIC’s asset allocation operates within the risk constraints determined by the Government in its mandate to GIC and represented by the Reference Portfolio.

The Board is supported by five board committees.

 
Board Committees
Investment Strategies Committee

The Investment Strategies Committee reviews and evaluates management recommendations on asset allocation before they are submitted to the GIC Board for decision. The Management reports to this committee on the performance of the portfolio. The committee recommends the key drivers for GIC’s return and risk outcomes, and does not decide on specific deals.

Investment Board

The Investment Board provides oversight of GIC’s investment processes and its implementation, with particular attention to large individual investments. It is not involved in the asset allocation decisions, which are the responsibility of the GIC Board. It also ensures GIC does not take on undue reputational risk in pursuit of good returns.

Risk Committee

The Risk Committee advises the GIC Board on risk matters and broadly supervises the effectiveness of risk management policies and practices. It reviews GIC’s risk profile as well as significant risk issues arising from operations and investments.

Audit Committee

The Audit Committee reviews and assesses the adequacy and effectiveness of internal controls, including financial, operational and compliance, and risk management policies and procedures. It also supervises and evaluates the effectiveness of the internal audit function. The committee reviews the integrity of the financial reporting process and other related disclosures for GIC companies, significant ethics violations, the impact of changes in the regulatory and legal environment, and issues of fraud and financial loss.

Human Resource and Organization Committee

The Human Resource and Organization Committee oversees organizational matters in GIC, including compensation policies, talent development, succession planning and organizational development.

 

International Advisory Board

The International Advisory Board provides the GIC Board, board committees and GIC Management global and regional perspectives on geopolitical, economic and market developments. It provides advice and perspective on a range of investment-related matters, in particular, global investment trends, emerging asset classes and new growth opportunities.

GIC Management

GIC management formulates and executes investment strategies. Once the long-term asset allocation strategy (as set out in its Policy Portfolio) is decided by the GIC Board, the management seeks to add value through an overlay of active, skill-based strategies (i.e. Active Portfolio). The management structure is relatively flat and comprises four committees with clear reporting lines and accountability.

  1. Group Executive Committee

    The Group Executive Committee is the highest management body in GIC, bringing together the Group’s functional and investment heads. It deliberates on management proposals on organizational, investment and risk issues before these are submitted to the relevant board committees and the GIC Board. The committee reviews and approves major business, governance and policy issues which apply to the entire group, and oversees organizational management initiatives, business planning and personnel matters (including succession planning, talent development, compensation and performance management).

  2. Investment Management Committee

    The Investment Management Committee assists the Group Executive Committee to implement investment policies and active strategies. It regularly reviews matters related to portfolio management, including rebalancing, portfolio liquidity,capital budget usage, active strategy implementation, risk methodologies, scenarios and stress loss. This committee is expected to monitor the performance and risk of the portfolio, including active strategies, on a monthly basis.

  3. Direct Investment Steering Committee

    The Direct Investment Steering Committee oversees the strategic plan, as well as the progress and pace of direct investments across GIC. It also reviews relationships with investee companies to help identify and develop deal opportunities. This committee does not approve investments.

  4. Group Risk Committee

    The Group Risk Committee provides oversight for the risk management policies and practices for the GIC Group. The committee also acts as a forum for the Chief Risk Officer to solicit views on the strategic risk management issues that would enable him to carry out his duties.

  5.  

Boards of Asset Management Companies

All three asset management companies – GIC Asset Management, GIC Real Estate and GIC Special Investments – are wholly-owned subsidiaries responsible for investing the portfolio within the guidelines set out in the Investment Mandate to GIC. Their boards oversee investment strategies of the asset classes under management, and review operations of the companies according to Group policies.

 

Governance Structure Overview

The following chart summarises the accountability of the GIC Board, International Advisory Board and board committees.

Terms of reference
GIC Board

Responsible for the GIC’s Policy Portfolio which determines its long-term asset allocation strategy and for the overall performance of the portfolio.

Does not approve individual investments which are the responsibilities of the management.

International Advisory Board Provides views on market developments generally and, in particular, the medium- to long-term outlook for investment opportunities around the world.
Board Committees Investment Strategies Committee

Assists the GIC Board in evaluating management’s recommendations on asset allocation, and in its oversight of overall portfolio performance.

Recommends the key drivers for GIC’s return and risk outcomes.

Does not approve individual investments.

Investment Board Assists the GIC Board in its oversight of GIC’s investment process, with particular attention to large individual investments.
Risk Committee Oversees the effectiveness of risk management policies and practices in the GIC Group.
Audit Committee

Looks into the effectiveness of the internal control systems for safeguarding company’s assets and client’s investment portfolios.

Reviews the integrity of the financial reporting process, significant ethics violations, compliance with regulatory and legal requirements, and issues of fraud and financial losses.

Human Resource and Organization Committee Oversees organizational matters in GIC, including compensation policies, talent development, succession planning, and organizational development.
GIC Management

Formulates and executes investment strategies.

Constructs Active Portfolio, with an overlay of active, skill-based strategies.

GIC Board and Board Committees

Board of Directors
Board of Directors
Chairman

Lee Hsien Loong

Directors

Lim Hng Kiang

Teo Chee Hean

Tharman Shanmugaratnam

Heng Swee Keat

Ang Kong Hua

Peter Seah Lim Huat

Chew Choon Seng

Raymond Lim Siang Keat

Hsieh Fu Hua

Loh Boon Chye

Gautam Banerjee

Suppiah Dhanabalan

Lim Siong Guan

Lim Chow Kiat

Board Committees
Investment Strategies
Committee

Chairman
Tharman Shanmugaratnam

Deputy Chairman
Peter Seah Lim Huat

Members

Lim Hng Kiang

Ang Kong Hua

Heng Swee Keat

S Iswaran

Advisors

Dr Martin L Leibowitz

G Leonard Baker Jr

Knut Kjaer

David Denison

Investment Board

Chairman
Ang Kong Hua

Members

G Leonard Baker Jr

Léon Bressler

David Denison

Hsieh Fu Hua

Choo Chiau Beng

Koh Boon Hwee
(appointed 15 January 2016)

Risk Committee

Chairman
Lim Hng Kiang

Members

Seck Wai Kwong

Raymond Lim Siang Keat

Loh Boon Chye

Advisor
Dr Martin L Leibowitz

Audit Committee

Chairman
Chew Choon Seng

Members

Raymond Lim Siang Keat

Loh Boon Chye

Gautam Banerjee

Human Resource and
Organization Committee

Chairman
Peter Seah Lim Huat

Members

Chew Choon Seng

Hsieh Fu Hua

Gautam Banerjee

International Advisory Board
 

Chairman
Teo Chee Hean

Members

G Leonard Baker Jr

Léon Bressler

Dr Martin L Leibowitz

Deepak Parekh

Knut Kjaer

David Denison

Group Committees
Group Executive Committee
Chairman

Lim Siong Guan
Group President

Lim Chow Kiat
Deputy Group President and Group Chief Investment Officer

Members

Lim Kee Chong
Deputy Group Chief Investment Officer and Director, Integrated Strategies

Dr Jeffrey Jaensubhakij
Deputy Group Chief Investment Officer and President, Public Markets

Goh Kok Huat
President, Real Estate and Chief Operating Officer

Tay Lim Hock
President, Private Equity & Infrastructure

Dr Chia Tai Tee
Chief Risk Officer

Dr Leslie Teo Eng Sipp
Chief Economist and Director, Economics & Investment Strategy

Investment Management Committee
Chairman

Dr Jeffrey Jaensubhakij
Deputy Group Chief Investment Officer
and President, Public Markets

Members

Dr Chia Tai Tee
Chief Risk Officer

Dr Leslie Teo Eng Sipp
Chief Economist and Director, Economics & Investment Strategy

Bryan Yeo King Ming
Chief Investment Officer, Equities

Liew Tzu Mi
Chief Investment Officer, Fixed Income

Ang Eng Seng
Chief Investment Officer, Infrastructure

Choo Yong Cheen
Chief Investment Officer, Private Equity

Lee Kok Sun
Chief Investment Officer,
Real Estate

Betty Tay Hui Choo
Head, External Managers Department

Direct Investment Steering Committee
Chairman

Lim Chow Kiat
Deputy Group President and Group Chief Investment Officer

Members

Dr Jeffrey Jaensubhakij
Deputy Group Chief Investment Officer and President, Public Markets

Lim Kee Chong
Deputy Group Chief Investment Officer and Director, Integrated Strategies

Goh Kok Huat
President, Real Estate and Chief Operating Officer

Tay Lim Hock
President, Private Equity & Infrastructure

Bryan Yeo King Ming
Chief Investment Officer, Equities

Choo Yong Cheen
Chief Investment Officer, Private Equity

Lee Kok Sun
Chief Investment Officer, Real Estate

Ang Eng Seng
Chief Investment Officer, Infrastructure

Group Risk Committee
Chairman

Dr Chia Tai Tee
Chief Risk Officer

Members

Dominic Lim Kwang Wei
Director, Risk & Performance Management

Charles Lim Sing Siong
General Counsel

Chan Hoe Yin
Director, Finance

Joyce Tan Siew Pheng
Director, Investment Operations

Ong Hian Leong
Director, Technology

Dr Leslie Teo Eng Sipp
Chief Economist and Director, Economics & Investment Strategy

Choy Siew Kai
Director, Data & Analytics

Kwok Wai Keong
Co-Head Asia/Global Head, Asset Management, Real Estate

John Tang
Global Head, Global Investments, Strategy & Risk, Private Equity & Infrastructure

Leong Wing Kwan
Head, Investment Services Office, Public Markets

Organizational Structure

Board of Directors International Advisory Board
Board Committees

Investment Strategies Committee

Investment Board

Risk Committee

Audit Committee

Human Resource & Organization Committee

LIM SIONG GUAN
Group President

LIM CHOW KIAT
Deputy Group President
Group Chief Investment Officer

DR JEFFREY JAENSUBHAKIJ
Deputy Group Chief Investment Officer

LIM KEE CHONG
Deputy Group Chief Investment Officer

GOH KOK HUAT
Chief Operating Officer

Corporate Headquarters Investment Groups

DR CHIA TAI TEE
Chief Risk Officer

DR LESLIE TEO ENG SIPP
Chief Economist, Economics & Investment Strategy

VINCENT CHEANG WENG SENG
Internal Audit

DOMINIC LIM KWANG WEI
Risk & Performance Management

WONG AI CHIAT
Corporate Administration & Infrastructure

DEANNA ONG AUN NEE
Human Resources & Organization

JOYCE TAN SIEW PHENG
Investment Operations

CHARLES LIM SING SIONG
Legal & Compliance

ONG HIAN LEONG
Technology

CHOY SIEW KAI
Data & Analytics

CHAN HOE YIN
Finance

PUBLIC MARKETS

DR JEFFREY JAENSUBHAKIJ
President

LIEW TZU MI
Chief Investment Officer, Fixed Income

BRYAN YEO KING MING
Chief Investment Officer, Public Equities

TUNG SIEW HOONG
Head, Portfolio Execution Group

BETTY TAY HUI CHOO
Head, External Managers

REAL ESTATE

GOH KOK HUAT
President

LEE KOK SUN
Chief Investment Officer

KWOK WAI KEONG
Head, Asset Management (Global) & Co-Head Investments (Asia)

LOH WAI KEONG
Co-Head Investments (Asia)

ADAM GALLISTEL
Region Head, Americas

MADELEINE COSGRAVE
Region Head, Europe

SUN JIANJUN
Region Head, Greater China

BERNARD PHANG
Head, Research & Strategic Planning

PRIVATE EQUITY & INFRASTRUCTURE

TAY LIM HOCK
President

CHOO YONG CHEEN
Chief Investment Officer, Private Equity, Head, Direct Investments (Global)

ANG ENG SENG
Chief Investment Officer, Infrastructure

JOHN TANG
Head, Global Investments, Strategy and Risk (GISR)

EUGENE WONG
Head, Global Capital Solutions (Global) Head, Funds & Co-Investments (Europe)

ERIC WILMES
Head, Direct Investments (Americas)

MAVERICK WONG
Head, Funds & Co-Investments (Americas) Head, Funds & Co- Investments (Asia)

STUART BALDWIN
Head, Infrastructure (Global)

INTEGRATED STRATEGIES

LIM KEE CHONG
Director

ARJUN KHULLAR
Head

Overseas Offices

ANTHONY LIM
President (Americas)

ANG ENG SENG
President (Europe)

SHARON SUN
Beijing Office

KISHORE GOTETY
Mumbai Office

KEVIN LOOI
San Francisco Office

WOLFGANG SCHWERDTLE
Sao Paulo Office

RAY PARK RAE-IK
Seoul Office

SUN JIANJUN
Shanghai Office

KEN CHAN
Tokyo Office

 

Executive Management