100%

5


2019/20

Governance

The Government, represented by the Ministry of Finance (MOF), sets the investment objective, risk parameters, and investment horizon for the portfolio. It also ensures a competent board of directors is in place.

The GIC Board is responsible for the Policy Portfolio that determines GIC’s long-term asset allocation and is accountable to the Government for the overall performance of the portfolio.

The GIC Management is responsible for formulating and executing investment strategies, and for individual investments. The Management also reports to the Government on the risk and performance of the portfolio.

5.1

Governance Overview

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, 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 Holdings 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. This is achieved using the two-key system: past reserves can be drawn down only in exceptional circumstances, if the President, after consulting the Council of Presidential Advisers, agrees with the Government’s proposal to draw on the past reserves. 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. Past reserves have been drawn to fund special Budget measures rolled out during the Global Financial Crisis, and more significantly in response to the COVID-19 pandemic.

As a Fifth Schedule company, GIC is directly accountable in a number of key areas to the Singapore President. The President is empowered to access any information needed to safeguard the country’s reserves, and has full information about the size of the 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

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 overall risk that the Government is prepared for GIC to take in generating long-term investment returns 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 contain the financial statements, 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 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 department.

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 that 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.

The Board is supported by five board committees.

International Advisory Board

The International Advisory Board provides the GIC Board, board committees, and the GIC Management with global and regional perspectives on geopolitical, economic and market developments. The advice and perspectives cover 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 comprises five committees with clear reporting lines and accountability.

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

  • Does not approve individual investments which are the responsibilities of the 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 Active Portfolio, with an overlay of skill-based, active strategies.

5.2

GIC Board, Board Committees and
Management Committees

Board of Directors


Chairman

Lee Hsien Loong


Deputy Chairman

Tharman Shanmugaratnam


Directors

Heng Swee Keat

Teo Chee Hean

Lawrence Wong

Lim Hng Kiang

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

Seck Wai Kwong

Lim Chow Kiat

Dr Jeffrey Jaensubhakij

Board Committees

Investment Strategies Committee


Chairman

Tharman Shanmugaratnam


Deputy Chairman

Peter Seah Lim Huat


Members

Heng Swee Keat

Lawrence Wong

Chan Chun Sing

Lim Hng Kiang

Ang Kong Hua


Advisors

Dr Martin L Leibowitz

G Leonard Baker Jr

Dr Mohamed El-Erian

Carsten Stendevad

Glenn Hutchins

(appointed 1 April 2020)

Investment Board


Chairman

Ang Kong Hua


Members

Hsieh Fu Hua

G Leonard Baker Jr

Léon Bressler

Koh Boon Hwee

Glenn Hutchins

(appointed 1 April 2020)

Risk Committee


Chairman

Lim Hng Kiang


Members

Loh Boon Chye

Lam Kun Kin

Seck Wai Kwong


Advisor

Dr Martin L Leibowitz

Audit Committee


Chairman

Chew Choon Seng


Members

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 Mohamed El-Erian

Uday Kotak

Carsten Stendevad

Glenn Hutchins

(appointed 1 April 2020)

Management Committees

Group Executive Committee


Chairman

Lim Chow Kiat

Chief Executive Officer


Members

Dr Jeffrey Jaensubhakij

Group Chief Investment Officer

Tay Lim Hock

Deputy Group Chief Investment Officer and Chief Operating Officer

Lim Kee Chong

Deputy Group Chief Investment Officer, President (Americas) and Director, Integrated Strategies

Jin Yuen Yee

Chief Risk Officer

Deanna Ong

Chief People Officer

Wu Choy Peng

Chief Technology Officer

Choo Yong Cheen

Chief Investment Officer, Private Equity

Liew Tzu Mi

Chief Investment Officer, Fixed Income

Bryan Yeo

Chief Investment Officer, Public Equities

Investment Management Committee


Chairman

Dr Jeffrey Jaensubhakij

Group Chief Investment Officer


Members

Jin Yuen Yee

Chief Risk Officer

Kevin Bong

Director, Economics & Investment Strategy

Bryan Yeo

Chief Investment Officer, Public 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

Director, External Managers

Arjun Khullar

Head, Integrated Strategies

Sam Kim

Director, Portfolio Execution

Dr Prakash Kannan

Chief Economist and Head, Total Portfolio Management, Economics & Investment Strategy

Direct Investment Steering Committee


Chairman

Lim Chow Kiat

Chief Executive Officer


Members

Dr Jeffrey Jaensubhakij

Group Chief Investment Officer

Tay Lim Hock

Deputy Group Chief Investment Officer and Chief Operating Officer

Lim Kee Chong

Deputy Group Chief Investment Officer, President (Americas) and Director, Integrated Strategies

Arjun Gupta

President (Europe)

Bryan Yeo

Chief Investment Officer, Public 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

Jin Yuen Yee

Chief Risk Officer


Members

William Ng

Head, Investment Risk Management, Risk and Performance Management

Charles Lim

General Counsel

Chan Hoe Yin

Director, Investment Services (Private Markets and Finance)

Leong Wing Kwan

Director, Investment Services (Public Markets)

Kevin Bong

Director, Economics & Investment Strategy

Sam Liew

Director, Technology

Ravi Balasubramanian

Head, India Equity Investments, Public Equities

Daniel Loo

Head, Portfolio Solutions Group, Fixed Income

John Tang

Co-Head, Global Investments, Strategy & Risk, Private Equity

Tracy Stroh

Head, Research and Strategic Planning, Real Estate

Sam Kim

Director, Portfolio Execution

Corporate Management Committee


Chairman

Tay Lim Hock

Deputy Group Chief Investment Officer and Chief Operating Officer


Members

Deanna Ong

Chief People Officer

Wu Choy Peng

Chief Technology Officer

Charles Lim

General Counsel

Wong Ai Chiat

Director, Corporate Administration and Infrastructure

Jason Leow

Director, Corporate Affairs and Communications

Peter Goh

Director, Human Resource & Organization

Vincent Cheang

Director, Internal Audit

Chan Hoe Yin

Director, Investment Services (Private Markets and Finance)

Leong Wing Kwan

Director, Investment Services (Public Markets)

Sam Liew

Director, Technology

Shang Thong Chie

Head, Enterprise Strategy

William Ng

Head, Investment Risk Management, Risk and Performance Management

5.3

Organizational Structure

Board of Directors

International Advisory Board

Board Committees


Investment Strategies Committee

Investment Board

Risk Committee

Audit Committee

Human Resource and Organization Committee


Group Executive Committee


Lim Chow Kiat

Chief Executive Officer

Dr Jeffrey Jaensubhakij

Group Chief Investment Officer

Tay Lim Hock

Deputy Group Chief Investment Officer and Chief Operating Officer

Lim Kee Chong

Deputy Group Chief Investment Officer

Jin Yuen Yee

Chief Risk Officer

Deanna Ong

Chief People Officer

Wu Choy Peng

Chief Technology Officer

Choo Yong Cheen

Chief Investment Officer, Private Equity

Liew Tzu Mi

Chief Investment Officer, Fixed Income

Bryan Yeo

Chief Investment Officer, Public Equities

Corporate Headquarters


Wong Ai Chiat

Corporate Administration & Infrastructure

Jason Leow

Corporate Affairs & Communications

Shang Thong Chie

Enterprise Strategy

Deanna Ong

Governance & Client Relations

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

Jin Yuen Yee

Risk & Performance Management

Wu Choy Peng

Technology

Investment Groups


Public Equities

Bryan Yeo

Chief Investment Officer

Fixed Income

Liew Tzu Mi

Chief Investment Officer

Private Equity

Choo Yong Cheen

Chief Investment Officer

Real Estate

Lee Kok Sun

Chief Investment Officer

Infrastructure

Ang Eng Seng

Chief Investment Officer

Integrated Strategies

Lim Kee Chong

Deputy Group Chief Investment Officer

External Managers

Betty Tay

Director

Portfolio Execution

Sam Kim

Director

Economics & Investment Strategy

Kevin Bong

Director

Prakash Kannan

Chief Economist

Global Offices


Lim Kee Chong

President (Americas)

Arjun Gupta

President (Europe)

Sharon Sun

Beijing

Kishore Gotety

Mumbai

Eric Wilmes

San Francisco

Wolfgang Schwerdtle

São Paulo

Cai Wenzheng

Seoul

Li Yu

Shanghai

Ken Sugimoto

Tokyo

5.4

Board, Board Committee Members and Advisors

View all Board of Directors

View all International Advisory Board

5.5

Executive Management

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