Managing the Portfolio

GIC invests across a broad range of assets with varying risk and return profiles to build a resilient portfolio capable of withstanding market uncertainty. This requires a deep understanding of the underlying risks of each active strategy across different scenarios. GIC diversifies across multiple dimensions—assets, geographies, sectors, and time horizons—to manage concentration risks and capture opportunities in different market environments. For example, we invest in both cyclical assets (e.g., equities and transport infrastructure) and stable assets (e.g., logistics, utilities, and inflation-linked investments). This ensures that our portfolio is resilient across market cycles.

GIC’s global presence, long-term horizon, and sector expertise enable us to deploy capital with greater granularity. We do so by breaking down broad themes into more targeted, investible segments. By identifying and allocating capital across specific sub-sectors, strategies, and asset characteristics with distinct risk and return drivers, we can reduce risk and generate more resilient or higher sources of return.

The GIC Portfolio is rebalanced regularly to maintain the intended risk-return profile. Within the risk parameters defined by the Strategic Portfolio, we have the flexibility to adjust allocations across multiple active strategies and expand GIC’s investable universe by exploiting GIC’s investment capabilities. This means putting more capital into areas where we think GIC has better understanding, access to market opportunities, and ability to structure and manage investments.

Our global equity investing effort is broadly organised by regions and by product groups centred on absolute and total return strategies. The department, comprising in-house portfolio managers and research analysts with specialised knowledge and expertise, is based in five offices globally.

As fundamentals-driven investors, we aim to build a resilient portfolio of high-quality companies. We focus on identifying select companies that exhibit both quality and long-term business durability. Our approach seeks to generate alpha through concentrated positions, supported by deep, global thematic research.

The Fixed Income & Multi Asset department manages various fixed income investment mandates and multi-asset strategies, leveraging both fundamental and systematic approaches.

Our fixed income business invests across the entire spectrum, spanning government bonds, emerging market bonds, corporate bonds and loans, convertible bonds, hybrid securities, structured products, and currencies. Under our multi-asset business, we manage a multi-asset macro strategy which includes interest rates, credit, currencies, equities, commodities, as well as an alternative credit strategy.

GIC engages external fund managers to access investment capabilities and opportunities in various sectors and geographies. External managers enable GIC to gain exposure across public and private markets. They also provide us with valuable investment insights.

Our private equity universe includes buyouts, minority growth, pre-initial public offerings (IPOs), venture capital, private credit, and special situations, such as distressed debt, and secondary private equity. We invest in companies directly and through funds. The direct investment programme is focused on taking minority equity positions and providing junior and senior debt financing in buyouts. Our funds strategy aims to identify and invest globally with leading private equity, venture capital, private credit, and special situations funds and grow with them in the long run. We have built a network of over 100 active fund managers. The department adds value to the boards and management of the investee companies by providing advice and access to a global business network.

GIC has been investing in the technology space for over 40 years. Our long-term orientation and flexible capital allow us to invest in all stages of the financing lifecycle, including venture, growth, and IPO/public equity. Our multi-asset experience and global footprint provide ground-level insights, enabling us to invest directly, alongside co-investors, and through funds. Our broad exposure enables us to curate purposeful connections between our partners for meaningful value creation. Our Technology Business Group comprises specialists from different asset classes and regions. It assesses industry trends and recommends GIC’s overall technology portfolio size, composition, and partnership strategy. Within Private Equity, our Technology Investment Group handles most of our early-stage investments through venture capital funds, growth equity funds, co-investments, and direct investments. We also have sector specialists for public and private market investments.

Our Infrastructure department takes a multi-pronged approach to investing. We invest mainly in private infrastructure assets with a high degree of cash flow visibility, and which provide a hedge against inflation. These include mature, low- to moderate-risk assets in developed markets, complemented by investments with higher growth potential in emerging markets. We also invest in infrastructure funds, non-investment grade infrastructure debt, and structured investments in listed infrastructure companies. We have a dedicated asset management team which works alongside our investment professionals and industry experts to monitor and enhance the governance and operations of our portfolio companies.

GIC was an early entrant among institutional investors in real estate. Our investments in the space now include traditional private real estate (e.g., brick-and-mortar assets) and real estate-related debt instruments. Our real estate assets span multiple property sectors, including traditional office, retail, residential, industrial, and hospitality, as well as new economy sectors such as data centres, life sciences, and healthcare properties.

Through active asset management, the department can further generate stable income yield and enhance the market value of its assets through tenant management, market positioning, leasing, and capital improvements.

Our Integrated Strategies Group invests across public and private asset markets and in less conventional investment opportunities, develops thematic investment strategies, and actively expands GIC’s network of relationships beyond traditional domains. The department executes large and strategic opportunities that do not naturally fit within other teams. In addition, it invests in and alongside family offices, founders/entrepreneurs, corporates, independent sponsors, and differentiated managers in developed markets. Its flexible investment mandate allows the team to invest across the capital structure and provide bespoke solutions to our partners for various uses including growth capital, M&A financing, and shareholder restructuring.

GIC’s Global Investment Services department supports investment activities across both public and private markets. They provide operational expertise spanning market settlements, transaction management and execution, investment data operations, portfolio finance, valuations, accounting and tax services, as well as portfolio administration.

GIC’s technology and data strategy underpins our investment excellence and operational resilience. We work closely with business teams across GIC to co-develop technology solutions that address business needs and priorities, enabling more effective execution, better decision-making, and faster response to change. We also harness intelligence from GIC’s wealth of data across public and private markets to generate differentiated insights that sharpen our investment edge. Our adoption of emerging technologies and AI is guided by clear governance and oversight, ensuring that we pursue innovation responsibly and securely.

The Technology Group provides reliable, secure infrastructure and drives digital transformation across the enterprise. It also transforms data into a strategic asset through robust data management and governance, enabling the effective use of GIC’s proprietary insights.

The Investment Insights Group partners with investment and corporate services teams to apply data science, quantitative research, and advanced analytics to generate insights that enhance investment decision-making and operational performance.

In close collaboration, the departments integrate technology, data, and analytics capabilities to strengthen GIC’s agility, resilience, and effectiveness when responding to an increasingly complex global environment.

We promote a strong enterprise-wide risk culture that values integrity and sound judgement in daily operations. All operating units own and are accountable for implementing control processes to manage inherent risks. Forward-looking risk assessments, which enhance the organisation’s agility and resilience, form an integral part of our investment and operating approach. These assessments cover a broad spectrum of risks with potential long-term impact on GIC’s ability to deliver on our mandate and achieve our portfolio objectives. It enables risk-based decision-making and responsible risk-taking.

Our risk management and control functions are independent of the risk-taking business units and provide risk advisory and support. These include risk management, legal and compliance, and information and technology risk management. While each has distinct responsibilities, these functions work collectively to translate risk appetites and tolerances into actionable frameworks and policies. They also provide robust day-to-day oversight and the necessary checks and balances over GIC’s risk-taking activities. These functions also enable proactive risk management through strategic partnership with business units in identifying emerging risks, assessing emerging and evolving risks, and analysing interconnectivity among different risk types. Together with ongoing training and communication, this fosters a strong risk culture.

GIC’s Internal Audit department reports functionally to the Chairman of the Audit Committee and administratively to the CEO. It provides independent assessment and assurance on the adequacy, appropriateness, and effectiveness of our internal controls through comprehensive reviews and continuous audits.

We identify, evaluate, monitor, and report various types of investment risks, ranging from systematic risks such as market and liquidity, to emerging risks due to the evolving geopolitical landscape and climate change. We measure and monitor various risk characteristics of the GIC Portfolio, including variability of returns, portfolio concentrations, and sensitivities to drivers of risk. Our suite of risk metrics uses both scenario-based and statistical approaches to measure risk from both forward-looking and historical perspectives. We conduct regular stress tests to simulate and assess portfolio impact under adverse market conditions.

The risk management function independently sets and monitors performance and risk review thresholds to highlight changes in risk-taking behaviour or inconsistencies with the stated risk and return assumptions. In addition, we equip our employees with a clear understanding of our investment mandate and risk management principles, as well as tools to empower them in managing investments on a day-to-day basis.

Managing reputational risk is an integral part of GIC’s overall risk management framework to ensure that we identify, address, and manage any reputational risks arising from our investment activities, business conduct, or interactions with stakeholders. To manage this, we embed reputation considerations in our governance and investment decision-making processes to ensure we exercise caution and do not take on undue reputational risk in our pursuit of returns. Robust systems and processes monitor and manage reputational risks to protect and build GIC’s reputation. It is the individual and collective responsibility of every GIC employee to protect and enhance the interests and reputation of GIC and our Client.

GIC’s good reputation and track record continues to differentiate us globally, enabling us to attract good talent, high-quality investment opportunities, and uphold GIC’s strong standing before global regulators. We remain committed to maintaining a stellar reputation by conducting ourselves with the highest ethical standards, ensuring that our reputation endures as a foundation of long-term success. This also allows us to uphold the trust of our Client and the Singapore public, alongside our peers and partners.

Legal and regulatory risks arise from uncertainties in the interpretation and application of laws and regulations, the enforcement of rights, the management of potential litigation, and breaches in contracts, laws, or regulations. Compliance risk refers to the risk of legal or regulatory sanctions, financial penalties, or reputational damage arising from non-compliance with applicable laws and regulations.

GIC’s compliance programme comprises robust policies, procedures, effective controls, monitoring, surveillance, and the enforcement of disciplinary actions against violations or misconduct. It is anchored on strong leadership commitment to a culture of integrity, ethics, and accountability. All staff are required to observe the policies and procedures set out in GIC’s Compliance Manual (incorporating the Code of Ethics), comply with all applicable laws and regulations, uphold exemplary conduct and the highest ethical standards, and exercise sound judgement at all times. We conduct regular and targeted trainings and quizzes to reinforce understanding of key policies and strengthen GIC’s risk and compliance culture. Employees are also required to adhere to confidentiality obligations and responsibilities.

The investment and corporate services teams collaborate with the legal and compliance function to manage legal, regulatory, compliance, and reputational risks arising from GIC’s investment and operational activities. The legal and compliance function monitors GIC’s compliance with applicable global laws and regulations, including laws on securities trading and foreign investment, competition law requirements, financial crimes and sanctions compliance, licensing, and regulatory approvals and reporting. Emerging legal and regulatory issues and proposed regulatory changes are also closely monitored and addressed. Additionally, the in-house legal team works with external lawyers to address legal risks.

We expect our investee companies to comply with all applicable laws and regulations, international treaties, United Nations sanctions, and to exercise strong corporate governance and stakeholder engagement practices.

GIC manages counterparty credit risk through stringent selection and approval processes, dealing only with financially sound and reputable counterparties. We monitor and review our counterparty exposures against set limits. Additionally, we employ various risk mitigation measures, such as netting agreements and collateral programmes. Counterparty profiles are reported to senior management—including the GRC and RC—on a regular basis.

All employees are responsible for identifying, evaluating, managing, monitoring, and reporting risks across their own areas of responsibility, while complying with the established policies, guidelines, and procedures. For example, a cross-functional team conducts comprehensive risk identification and assessment processes for new investment products or strategies. This ensures that all associated risks are properly identified and analysed before any investment or engagement.

We continuously monitor and assess the operating environment to identify and address control weaknesses promptly. Throughout the year, key processes are reviewed to assess the operational health of GIC and control deficiencies are duly addressed within set time frames. As part of providing insights on GIC’s operational risk profile, significant operational risk events are reported to the GRC and the RC on a regular basis.

As GIC continues to embrace, adopt, and integrate advanced information technologies (IT), we must embed security by design and by default, while maintaining robust and resilient cybersecurity defences. This underscores our dedication to safeguarding the integrity and reliability of our technology and infrastructure.

In 2025, the cybersecurity landscape was shaped by a surge in novel and sophisticated cyber threats, including triple ransomware extortion, widespread software supply chain compromises, heightened targeted attacks on third-party vendors, and the weaponisation of AI by malicious actors to scale operations and circumvent traditional human and IT defences. To address this, we have a dedicated team of highly skilled cybersecurity and IT risk management professionals equipped with a multi-layered, adaptive, and next-generation suite of cybersecurity capabilities.

Our cybersecurity strategy is anchored on the principle of 'defence in depth’, complemented by an adaptive and agile approach to protecting our networks, systems, and people. This ensures that if an initial layer of defence is breached, subsequent layers are in place to mitigate and contain the threat. Beyond the deployment of advanced technologies, our processes and practices are aligned with global best standards and are subject to continuous review and enhancement to ensure sustained resilience against emerging risks.

Our employees are integral to our cybersecurity framework. We conduct regular training to keep staff informed of emerging threats and foster a culture of security awareness across GIC. These include social engineering exercises to test staff vigilance as well as educational sessions on emerging technologies and their associated risks. As the technological landscape evolves, we remain steadfast in our commitment to investing in our people, processes, and tools to protect GIC’s technology resources and information assets.

GIC’s robust business continuity and crisis management programme leverages technology and standardised risk assessment tools. It is a coordinated effort across the organisation involving representatives from all GIC offices and departments. The programme undergoes regular risk assessments, plan reviews, and annual exercises to meet evolving standards and business needs.

Our employees are expected to conduct themselves in accordance with our PRIME values, which they are assessed against in our regular performance appraisals. Our remuneration policies reinforce a prudent risk-taking culture, so employees are appropriately incentivised to act in line with our long-term investment mandate and uphold GIC’s fiduciary duty to the Client.

We place an emphasis on developing our talent from within the organisation, as well as hiring to add new capabilities and increase diversity of the bench. We are disciplined and systematic in performance management and succession planning, with a focus on developing the next generation of leaders to ensure business continuity.