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 which 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.

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 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.

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 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

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 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 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.

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 and significant risk issues arising from operations and investments.

Audit Committee

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.

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 perspectives 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 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.

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).

Investment Management Committee

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.

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. The committee does not approve investments.

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.

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 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.

GIC Board, Board Committees and Management Comittees

Board of Directors
Board of Directors
Chairman

Lee Hsien Loong

Directors

Lim 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
(appointed 14 August 2017)

Dr Tony Tan Keng Yam
(appointed 1 January 2018)

Lim Chow Kiat

Dr Jeffrey Jaensubhakij

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

Lawrence Wong
(appointed 1 August 2017)

Advisors

Dr Martin L Leibowitz

G Leonard Baker Jr

Knut Kjær

David Denison

Mark Kritzman

Dr Mohamed El-Erian

Investment Board
Chairman

Ang Kong Hua

Members

G Leonard Baker Jr

Léon Bressler

David Denison

Hsieh Fu Hua

Koh Boon Hwee

Risk Committee
Chairman

Lim Hng Kiang

Members

Loh Boon Chye

Lam Kun Kin

Advisors

Dr Martin L Leibowitz

Mark Kritzman

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
International Advisory Board
Chairman

Teo Chee Hean

Members

G Leonard Baker Jr

Léon Bressler

Knut Kjær

David Denison

Mark Kritzman

Dr Mohamed El-Erian

Uday Kotak
(appointed 1 October 2017)

Group Committees
Group Executive Committee
Chairman

Lim Chow Kiat
Chief Executive Officer

Members

Dr Jeffrey Jaensubhakij
Group Chief Investment Officer

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

Tay Lim Hock
Deputy Group Chief Investment Officer and President (Europe)

Goh Kok Huat
Chief Operating Officer

Dr Chia Tai Tee
Chief Risk Officer

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

Deanna Ong
Chief People Officer

Wu Choy Peng
Chief Technology Officer

Advisor

Lim Siong Guan

Investment Management Committee
Chairman

Dr Jeffrey Jaensubhakij
Group Chief Investment Officer

Members

Dr Chia Tai Tee
Chief Risk Officer

Dr Leslie Teo
Chief Economist and 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 Group

Direct Investment Steering Committee
Chairman

Lim Chow Kiat
Chief Executive Officer

Members

Dr Jeffrey Jaensubhakij
Group Chief Investment Officer

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

Tay Lim Hock
Deputy Group Chief Investment Officer and 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

Dr Chia Tai Tee
Chief Risk Officer

Members

Dominic Lim
Director, Risk & Performance Management

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

Charles Lim
General Counsel

Chan Hoe Yin
Director, Investment Services (Private Markets and Finance)

Leong Wing Kwan
Director, Investment Services (Public Markets)

Joyce Tan
Director, Business Solutions & Technology

Loh Wai Keong
Director, Enterprise Strategy

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

Ravi Balasubramanian
Head, Asia Equities Research, Public Equities

Jin Yuen Yee
Head, Macro Research & Strategy, Fixed Income

Ang Choon Beng
Senior Vice President, Real Estate

Organizational Structure

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 Equities

BRYAN YEO

Chief Investment Officer

Fixed Income

LIEW TZU MI

Chief Investment Officer

Private Equity

CHOO YONG CHEEN

Chief Investment Officer

Infrastructure

ANG ENG SENG

Chief Investment Officer

Real Estate

LEE KOK SUN

Chief Investment Officer

Integrated Strategies Group

LIM KEE CHONG

Director

External Managers

BETTY TAY

Director

Portfolio Execution Group

SAM 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

Executive Management


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