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.
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, part of the GIC Portfolio returns is 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.
1 Temasek Holdings was included in the NIRC framework with effect from FY16/17.
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 needed to safeguard the country’s reserves. No one may be appointed to or removed from the GIC Board without the President’s 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 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 MOF, 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, holdings and bank account balances. They 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, 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 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.
The Investment Strategies Committee reviews and evaluates management recommendations on asset allocation before they are submitted to the GIC Board for decision. The GIC 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.
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.
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 and significant risk issues arising from operations and investments.
The Audit Committee reviews and assesses the adequacy and effectiveness of internal controls. These include financial, operational and compliance, as well as 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.
The Human Resource and Organization Committee oversees organizational matters in GIC, including compensation policies, talent development, succession planning, and organizational development.
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 perspectives on a range of investment-related matters; in particular, global investment trends, emerging asset classes and new growth opportunities.
GIC Management formulates and executes investment strategies. Once the long-term asset allocation strategy (as set out in the Policy Portfolio) is decided by the GIC Board, the management seeks to add value through an overlay of active, skill-based strategies (i.e. the Active Portfolio). The management structure is relatively flat and comprises four committees with clear reporting lines and accountability.
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).
The Investment Management Committee assists the Group Executive Committee in the implementation of 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. The committee monitors the performance and risk of the portfolio, including active strategies, on a monthly basis.
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. The committee does not approve investments.
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.
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 GIC Portfolio.
Does not approve individual investments which are the responsibilities of GIC 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 GIC 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 assets and Client’s investment portfolios.
Reviews 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 the Active Portfolio, with an overlay of active, skill-based strategies. |
| Board of Directors |
Board of Directors
ChairmanLee Hsien Loong DirectorsLim Hng Kiang Tharman Shanmugaratnam Teo Chee Hean Heng Swee Keat Ang Kong Hua Peter Seah Lim Huat Chew Choon Seng Hsieh Fu Hua Loh Boon Chye Gautam Banerjee Suppiah Dhanabalan Koh Boon Hwee
Dr Tony Tan Keng Yam
Lim Chow Kiat Dr Jeffrey Jaensubhakij |
| Board Committees | |
Investment Strategies Committee
ChairmanTharman Shanmugaratnam Deputy ChairmanPeter Seah Lim Huat MembersLim Hng Kiang Ang Kong Hua Heng Swee Keat S Iswaran Lawrence Wong
AdvisorsDr Martin L Leibowitz G Leonard Baker Jr Knut Kjær David Denison Mark Kritzman Dr Mohamed El-Erian Investment Board
ChairmanAng Kong Hua MembersG Leonard Baker Jr Léon Bressler David Denison Hsieh Fu Hua Koh Boon Hwee |
Risk Committee
ChairmanLim Hng Kiang MembersLoh Boon Chye Lam Kun Kin AdvisorsDr Martin L Leibowitz Mark Kritzman Audit Committee
ChairmanChew Choon Seng MembersLoh Boon Chye Gautam Banerjee Human Resource and Organization Committee
ChairmanPeter Seah Lim Huat MembersChew Choon Seng Hsieh Fu Hua Gautam Banerjee |
| International Advisory Board |
International Advisory Board
ChairmanTeo Chee Hean MembersG Leonard Baker Jr Léon Bressler Knut Kjær David Denison Mark Kritzman Dr Mohamed El-Erian Uday Kotak
|
| Group Committees |
Group Executive Committee
ChairmanLim Chow Kiat
MembersDr Jeffrey Jaensubhakij
Lim Kee Chong
Tay Lim Hock
Goh Kok Huat
Dr Chia Tai Tee
Dr Leslie Teo
Deanna Ong
Wu Choy Peng
AdvisorLim Siong Guan |
Investment Management Committee
ChairmanDr Jeffrey Jaensubhakij
MembersDr Chia Tai Tee
Dr Leslie Teo
Bryan Yeo
Liew Tzu Mi
Ang Eng Seng
Choo Yong Cheen
Lee Kok Sun
Betty Tay
Arjun Khullar
|
Direct Investment Steering Committee
ChairmanLim Chow Kiat
MembersDr Jeffrey Jaensubhakij
Lim Kee Chong
Tay Lim Hock
Bryan Yeo
Choo Yong Cheen
Lee Kok Sun
Ang Eng Seng
|
Group Risk Committee
ChairmanDr Chia Tai Tee
MembersDominic Lim
Dr Leslie Teo
Charles Lim
Chan Hoe Yin
Leong Wing Kwan
Joyce Tan
Loh Wai Keong
John Tang
Ravi Balasubramanian
Jin Yuen Yee
Ang Choon Beng
|
| Board of Directors |
| International Advisory Board |
| Board Committees | ||
|
Investment Strategies Committee Investment Board Risk Committee Human Resource & Organization Committee Audit Committee |
| Group Executive Committee | ||
|
LIM CHOW KIAT Chief Executive Officer DR JEFFREY JAENSUBHAKIJ Group Chief Investment Officer LIM KEE CHONG Deputy Group Chief Investment Officer TAY LIM HOCK Deputy Group Chief Investment Officer GOH KOK HUAT Chief Operating Officer DR CHIA TAI TEE Chief Risk Officer DR LESLIE TEO Chief Economist WU CHOY PENG Chief Technology Officer DEANNA ONG Chief People Officer LIM SIONG GUAN Advisor |
| Investment Groups |
Public EquitiesBRYAN YEO Chief Investment Officer Fixed IncomeLIEW TZU MI Chief Investment Officer Private EquityCHOO YONG CHEEN Chief Investment Officer InfrastructureANG ENG SENG Chief Investment Officer Real EstateLEE KOK SUN Chief Investment Officer Integrated Strategies GroupLIM KEE CHONG Director External ManagersBETTY TAY Director Portfolio Execution GroupSAM KIM Director |
| Corporate Headquarters |
|
JOYCE TAN Business Solutions & Technology WONG AI CHIAT Corporate Administration & Infrastructure JENNIFER LEWIS Corporate Affairs & Communications DR LESLIE TEO Economics & Investment Strategy LOH WAI KEONG Enterprise Strategy PETER GOH Human Resource & Organization VINCENT CHEANG Internal Audit CHAN HOE YIN Investment Services (Private Markets and Finance) LEONG WING KWAN Investment Services (Public Markets) CHARLES LIM Legal & Compliance DOMINIC LIM Risk & Performance Management |
| Overseas Offices |
|
LIM KEE CHONG President (Americas) TAY LIM HOCK President (Europe) SHARON SUN Beijing Office KISHORE GOTETY Mumbai Office KEVIN LOOI San Francisco Office WOLFGANG SCHWERDTLE São Paulo Office LEE KOK SUN Seoul Office SUN JIANJUN Shanghai Office KEN CHAN Tokyo Office |
