GIC’s investment strategy is to build up a portfolio of assets that generate good long-term real returns, while adhering to the Client’s (the Government of Singapore) risk parameters.
By investing in a diverse range of assets with varying risk levels and expected returns, the GIC portfolio will be more resilient and will have greater flexibility to navigate market uncertainty.
Diversification in the GIC Portfolio spans multiple dimensions: across assets, geographies, and time horizons.
3.2 Building the Portfolio
With AI adoption proliferating in workplaces globally, GIC continues to use AI to create additional capacity and enhance performance.
Over the past year, GIC has adopted a three-pronged approach:
Integrate AI into operations
Foster innovation
Develop advanced AI agents
3.3 Investment Implementation
Our mission is to preserve and enhance the international purchasing power of the reserves placed under our management by delivering good long-term returns above global inflation.
Our investment framework maximises GIC’s strengths, including our long investment horizon, significant capital pool, global reach, best-in-class capabilities, and robust governance structure.
Diagram 1. GIC’s Investment Framework
The Client owns the funds that GIC manages and decides on the overall risk that the GIC Portfolio can take in pursuit of good long-term returns.
GIC’s investment process begins with the Policy Portfolio, which defines the key asset groups that drive the GIC Portfolio’s long-term returns. The Active Portfolio aims to add value to the Policy Portfolio through skill-based active strategies, while keeping within the total portfolio’s risk parameters. Together, the Policy Portfolio and Active Portfolio form the GIC Portfolio.
The Policy Portfolio represents GIC’s long-term asset allocation strategy, which seeks to harvest risk premia in a balanced manner that is consistent with the Client’s risk tolerance. We represent our Policy Portfolio in three broad asset groups: Equities, Fixed Income, and Real Assets (see Figure 1). These include investments in developed market equities, emerging market equities, nominal and inflation-linked bonds, private equity, real estate, alternatives, and infrastructure.
Figure 1. Asset Class Distribution in the Policy Portfolio
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Equities
Fixed Income
Real Assets
GIC’s rebalancing process ensures we keep to the allocated mix of assets in the Policy Portfolio. Rebalancing involves systematically buying assets that have decreased in price and selling assets that have increased in price to keep the asset composition in our portfolio steady over time. For example, when public equities do particularly well, the rebalancing rule compels us to sell. Conversely, when public equities do poorly, such as after the burst of an economic bubble, rebalancing calls for us to buy. We may adjust our Policy Portfolio temporarily in response to medium-term dislocations in the global investment environment in particular assets or in countries.
The Active Portfolio comprises a group of investment strategies that adds value to the Policy Portfolio from our teams’ skills and competitive advantages, while broadly maintaining the same level of systematic risk.
Active strategies are funded by Policy Portfolio assets with similar overall risk profiles. This funding is the cost of capital for the active strategy, over which the strategy is required to generate additional returns. The GIC Board sets an active risk budget that the GIC Management can use for its active strategies.
These strategies are stress-tested so we can understand and quantify their performance under various extreme but plausible market conditions, including macroeconomic and geopolitical events. The active risk budget establishes the total level of risk for the Active Portfolio.
Through the Policy Portfolio and Active Portfolio, the GIC Portfolio is diversified across asset groups, each with a different risk and return profile. Growth assets and strategies, such as equities, generate higher returns, but are riskier. Defensive assets and strategies, such as sovereign bonds, offer lower returns for lower risk and protect the portfolio in market downturns. The GIC Portfolio is constructed to be resilient across a broad range of possible market and economic conditions, while generating good returns above global inflation in the long term.
At GIC, investment portfolios are constructed to give the best chances of achieving their intended purposes over appropriate horizons and within appropriate risk limits. For the GIC Portfolio as a whole, this means achieving good, long-term, risk-adjusted returns over 20 years while limiting potential downside over the shorter term.
Our approach to portfolio construction is founded on the following principles that define the fundamental basis upon which we allocate capital:
We allocate to active strategies within the GIC Portfolio according to our investment capabilities. This means putting more capital into areas where we think GIC has better access to market opportunities, better understanding and ability to structure and manage the investments, and greater confidence that our investment theses will play out.
Our investing approach is underpinned by our philosophy to distinguish price from value. In the short term, an asset’s price is driven largely by market sentiment, while its value lies in its fundamental worth. Anchored by this perspective, we appraise value diligently and adhere to price discipline, even when it sometimes means going against prevailing market sentiment. To determine where fundamental value lies, we use both top-down and bottom-up analyses to identify and assess drivers of long-term value.
This starts with a clear understanding of the real underlying risks of each investment in various scenarios. We then put together different combinations of investments in various amounts and stress-test their overall risk. Finally, we choose the portfolio combination that abides by our risk limits even in bad scenarios and gives us the best prospective return. The portfolio will invariably be diversified to a large extent, taking advantage of the fact that risks are not perfectly correlated and therefore work best in combination rather than in concentration.
It is important to ensure that ongoing management of investment portfolios is disciplined and based on good analysis and judgment. The GIC Portfolio is rebalanced regularly to preserve the intended risk-return profile. Actively managed portfolios are reviewed regularly in light of changing market conditions and developments in our active management capabilities.
Portfolio diversification is crucial in enabling GIC to deliver our mandate to preserve and enhance the international purchasing power of Singapore’s reserves. By investing in a diverse range of assets with varying risk levels and expected returns , the GIC portfolio will be more resilient and will have greater flexibility to navigate market uncertainty.
Diagram 2. Portfolio Diversification Reduces Participation at Equity Tails
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Probability Density
Negative
0
Positive
Portfolio Returns
Diversified Portfolio with Normally Distributed Returns
Portfolio with Normally Distributed Returns
A diversified portfolio has less exposure to both downside and upside tails. While it can minimise losses during market stresses, it can also result in lower returns during market highs.
Over the last few years, shifts in the investment environment have motivated the need for a more proactive approach to diversification beyond a traditional strategy of equities and bonds. Monetary policy tightening and inflation surging have led to both equities and bond prices falling at the same time, challenging the well-known “safe haven” benefit of bonds. In addition, equity markets are becoming increasingly concentrated with a smaller set of companies dominating major market indices.
At GIC, our expertise in financial markets, established global presence, and long-term investment horizon, enable us to diversify with greater granularity. Diversification in the GIC Portfolio spans multiple dimensions:
We have expertise across specific markets and industries, as well as strong asset management and deal sourcing capabilities across asset groups. We leverage these to diversify our portfolio across multiple strategies, products, industries, markets, and stages of development. This way, we are able to generate returns from multiple sources and mitigate specific risks. Specifically, we increased investments in real assets which had been critical in generating real returns for GIC during the recent inflationary period. These investments offer steady returns and provide protection against inflation. They tend to have lower correlations to equities too.
We do not overly rely on any single market. We invest in more than 40 countries globally, through our wide network of 11 offices. Our teams on the ground give us access to market insights and deal flow.
In private markets, time or vintage year diversification refers to spreading capital deployment over multiple years to avoid pro-cyclical investing. It also reduces the risk of overconcentration in any single vintage year.
Increasing need for greater granularity in diversification
We go beyond just diversifying across broad asset classes, but also granularly target different sectors within them. For example, in real estate, we are invested in hotels, which are more sensitive to macroeconomic conditions. They are then balanced with more resilient investments, such as well-located student housing near top universities that have stable demand. Similarly, in infrastructure, transportation assets, such as airports and ports, face greater variability in demand, while utilities provide essential services and demonstrate greater resilience against macroeconomic fluctuations.
Our Client has characterised GIC’s risk preference using a portfolio of 65% global equities and 35% global bonds. We refer to this as the Reference Portfolio (see Figure 2). The Reference Portfolio is not a benchmark, but an expression of the overall risk that the Client is prepared for the GIC Portfolio to take.
GIC’s investment strategy is to build a portfolio comprising asset classes that can generate good long-term returns above global inflation while adhering to the Client’s risk parameters. There will be differences in exposures and the level of risk between the GIC Portfolio and the Reference Portfolio. GIC allocates to a better-diversified range of assets beyond just equities and bonds. We may also adjust our level of risk in times of market exuberance or when significant opportunities arise. This is all part of a disciplined, professional approach to long-term investing.
Figure 2. Distribution of Asset Classes in the Reference Portfolio that Characterises the Client’s Risk Preference
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Reference Portfolio
Equities
Fixed Income
The governance of the investment framework (see Table 1) clarifies the responsibilities of the GIC Board and Management across the various components of the investment process. The Reference Portfolio characterises the Client’s risk appetite, while the GIC Board approves the Policy Portfolio that is designed to deliver good long-term returns. The GIC Management is empowered to add value within the Client’s risk tolerance through the Active Portfolio which comprises active, skill-based strategies.
The Investment Board provides an independent layer of oversight on GIC’s active investment management and process. Investment Board members come from the private sector and are not necessarily on the GIC Board. Together, they offer extensive experience in various types of investments across geographies. The Investment Board ensures that GIC invests in a sound and disciplined manner. It also ensures that GIC considers potential reputational risks arising from investment activities.
Table 1. Governance of the Investment Framework
Responsibility
GIC Board
Investment Strategies Committee
Investment Board
Risk Committee
GIC Management
Investment Teams
At GIC, long-term portfolio construction and asset allocation are determined top-down by the Economics & Investment Strategy department, while individual investment opportunities are pursued by the bottom-up investment teams. Our bottom-up investment groups include Public Equities, Fixed Income & Multi Asset, Private Equity, Real Estate, and Infrastructure. In addition, our Integrated Strategies Group evaluates and invests across public and private asset markets, while the Total Portfolio Solutions department enhances the GIC Portfolio’s performance and diversification. Our External Managers Department oversees external fund managers who supplement the expertise of our core internal investment groups. Our Portfolio Execution Group ensures that our investments are executed and funded, while our Investment Services teams provide operational support for the implementation of investment decisions (see Table 2).
We are open to investing in all countries outside of Singapore, but do not invest in countries that are subject to United Nations Security Council sanctions. We monitor our investee companies and exercise ownership rights, with the intent of preserving and enhancing long-term investment value and protecting the interests of the Client.
Table 2. Teams Involved in GIC’s Investment Implementation Process
Asset Allocation
Economics & Investment Strategy
Formulates long-term portfolio strategy and capital allocation and undertakes medium-term asset allocation.
Public Markets
Invests globally in equities and fixed income, constructing a diversified portfolio to produce sustainable, risk-adjusted performance.
Private Markets
Invests in opportunities that have the potential to generate attractive long-term real returns and the ability to diversify our portfolio.
Cross-Asset
Integrated Strategies
Invests across public and private asset markets and in less conventional investment opportunities, engages with entrepreneurs and families for bespoke solutions, and actively expands GIC’s network beyond traditional domains.
Total Portfolio Solutions
Enhances the GIC Portfolio’s performance and diversification through tail risk management, portfolio rebalancing and optimisation, and systematic investments.
Investment Services and Technology
Supports public and private market investment activities.
The Economics & Investment Strategy department articulates GIC’s strategic outlook, determines asset exposures and benchmarks, analyses new return streams and investment models, and optimises the risk-reward of the GIC Portfolio. The department is responsible for GIC’s long-term Policy Portfolio and medium-term asset allocation, as well as capital allocation to internal active strategies.
GIC invests in both public and private markets. In public markets, we invest in public equities in both developed and emerging markets, absolute return strategies (hedge funds), fixed income, and cash. We manage a diversified portfolio to produce good, risk-adjusted performance. In private markets, we invest in opportunities that have the potential to generate attractive long-term real returns and the ability to diversify the portfolio. Real estate and infrastructure assets, in particular, also serve as a hedge against inflation.
Our equity investing effort is broadly organised by regions (Developed Markets, Emerging Markets, and Asia) and by product groups centred on absolute and total return strategies. The investment team, 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 the select few 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.
The Portfolio Execution Group partners closely with other investment groups to execute their investments. With teams in Singapore, London, and New York, we combine a global perspective with deep regional expertise to access relevant capital markets. Our teams provide a full spectrum of trading capabilities, tailored solutioning and advisory services, expertise in balance sheet management, as well as market and microstructure insights across all public market asset classes. We manage GIC’s counterparty relations, ensure that all investment activities are appropriately funded, and that total portfolio liquidity is optimally managed. We also seek to extract value from GIC’s balance sheet and securities inventory. The department is dedicated to ensuring that GIC’s investment decisions are well implemented, with uninterrupted access to global capital markets and our external counterparties.
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-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 with leading private equity, venture capital, private credit, and special situations funds globally and grow with them in the long run. We have built a network of over 100 active fund managers. The investment teams add value to the boards and management of the investee companies by providing advice and access to a global business network.
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, for example, 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, GIC 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 (ISG) 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. ISG functions as a top-of-the-house team on the private side, executing large and strategic opportunities that do not naturally fit within other teams. In addition, ISG invests in and alongside family offices, founders/entrepreneurs, corporates, independent sponsors, and differentiated managers in developed markets. ISG’s flexible investment mandate allows the team to invest across the capital structure and hence provide bespoke solutions to our partners for various uses including growth capital, M&A financing, and shareholder restructuring.
The Total Portfolio Solutions department is dedicated to enhancing the GIC Portfolio's performance and diversification. By focusing on tail risk management and portfolio optimisation, we ensure the GIC Portfolio is resilient against extreme market events and aligns with our strategic objectives. Leveraging systematic investing, AI-driven insights, and innovative portfolio construction techniques, we continuously assess market conditions and adjust our positions as needed, to ensure the portfolio remains agile and responsive. Additionally, through tactical allocation, execution excellence, and active portfolio monitoring, we optimise and rebalance the portfolio to maintain optimal asset allocation and improve performance.
GIC has been investing in the technology space for more than 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. 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.
GIC has dedicated investment services departments that support public and private market investment activities. They provide support for settlements, transaction management and execution, investment and data operations, valuations, reporting, and portfolio administration.
Our data strategy and investment insights groups work with the investment teams to harness intelligence from our wealth of data across public and private markets. By applying artificial intelligence (AI), data science, and quantitative research and analytics, we seek to transform data into actionable insights that will enhance decision-making and drive investment outcomes. Our data-informed approach enables us to more strategically use the power of technology to navigate the increasing complexities of global markets and respond to emergent scenarios and deal opportunities with agility.
In 2023, we established the AI Council to provide leadership oversight and governance as we explored ways to capitalise on AI. With AI adoption proliferating in workplaces globally, our vision at GIC continues to be building an AI-enabled organisation where AI creates additional capacity, enhances performance, and becomes second nature to our work.
Over the past year, GIC has dedicated resources to uplift enterprise AI capabilities through a three-pronged approach:
This project involves multiple AI agents, equipped with a comprehensive understanding of relevant investment frameworks, working together to evaluate and challenge investment proposals. GIC deployed the initial prototype to function as a virtual IC member, meticulously reviewing deal terms and information, raising pertinent questions for the broader IC's consideration. It learns from our deal evaluation framework and refines its approach with each interaction. GIC is continually enhancing this capability by exploring the development of different personas for the AI agents, such as a risk manager, to introduce additional perspectives and enable more robust discussions.
Our investment approach is focused on generating good long-term returns by constructing a portfolio that is resilient to macroeconomic and market pressures, while also being aligned with the Client’s risk tolerance.
To protect the Client’s interests and avoid permanent impairment to the portfolio, GIC’s risk management objectives aim to:
The GIC Board provides ultimate oversight for risk management in GIC. The Board approves investment and risk management policy statements and is the ultimate approving authority for asset allocation decisions.
It is supported by the Board Risk Committee (BRC) which sets the overall direction of risk management policies and practices in GIC, and reviews GIC’s risk profile as well as significant risk issues arising from GIC’s operations and investments.
The Group Executive Committee (GEC), as the highest management body in GIC, deliberates on investment and risk issues before they are reported to the relevant board committees. It is also the forum that assesses and makes decisions on fiduciary and reputational risk issues.
The Chief Risk Officer (CRO) reports to the Chief Executive Officer (CEO) and the Chairman of the BRC. The CRO is accountable to the Board, primarily through the BRC, on all risk-related matters, and chairs the Group Risk Committee (GRC), which brings together representatives from relevant departments in GIC. The GRC is vested with the responsibility to oversee the implementation of risk frameworks and policies. It also assesses and resolves significant risk issues arising from GIC’s operations and investments.
Diagram 3. Risk Governance Structure of GIC Group
GIC’s risk management model operates along three lines of defence (see Diagram 4), ensuring that risk ownership and accountability across the organisation is transparent and clearly articulated. This underscores our premise that every employee has an individual responsibility to manage risk well. GIC’s model integrates risk management into our daily operations and overall strategic planning.
Diagram 4. Three Levels of Risk Management
We promote and maintain an enterprise-wide risk culture that values the importance of GIC employees acting with integrity and exercising sound judgement while carrying out their daily operations. All operating units own and are primarily accountable for putting in place the necessary control processes to manage inherent risks. Our forward-looking risk assessments, which enhance the organisation’s agility and resilience, form an integral part of our investment and operating approach. These assessments, which encompass a broad spectrum of risks with potential long-term impact on GIC’s ability to deliver on our mandate and achieve our portfolio objectives, enable risk-based decision making and responsible risk-taking.
Risk management and control functions independent of the risk-taking business units serve as the second line of defence, providing risk advisory and support. These functions include risk management, legal and compliance, and information and technology risk management. While each function has its defined set of responsibilities, these functions work collectively to translate established risk appetites and tolerances into actionable frameworks and policies. They also provide robust day-to-day risk oversight and the necessary checks and balances over GIC’s risk-taking activities. These functions enable proactive risk management as well through strategic partnership with business units in identifying emerging risks, assessing emerging and evolving risks, and analysing interconnectivity among different risk types. The second line of defence continuously fosters a strong risk culture through ongoing training and communication.
Reporting functionally to the Chairperson of the Audit Committee and administratively to the CEO, GIC’s Internal Audit Department (IAD) forms the third line of defence. IAD provides independent assessment and assurance on the adequacy, appropriateness, and effectiveness of our internal controls through comprehensive reviews and continuous audits.
Our multi-pronged approach to risk management, complemented by the three lines of defence, ensures that risks within the portfolio are looked at in a comprehensive manner.
We adopt both a top-down and bottom-up approach in identifying, evaluating, monitoring, and reporting investment risks assumed by the GIC Portfolio. We employ a suite of measures such as volatility, risk concentrations, sensitivities to risk factors, liquidity profile, and expected shortfall. To complement these measures, stress tests, scenario analyses, and reverse stress tests are carried out on a regular basis.
The risk management function independently sets and monitors performance and risk review thresholds to highlight potential changes in risk-taking behaviour, and inconsistencies with the stated risk and return assumptions. In addition, we equip our employees with the relevant frameworks, policies, and guidelines that clearly articulate our investment mandate and risk management principles to assist them in managing investments on a day-to-day basis.
Managing reputational risk is an integral part of GIC’s overall risk management framework. We strive to maintain a stellar reputation by conducting ourselves with the highest ethical standards. We have in place governance and investment processes that ensure we exercise caution and do not take on undue reputational risk in our pursuit of returns. It is the individual and collective responsibility of every GIC employee to protect and enhance GIC’s reputation.
GIC’s good track record and strong reputation across the markets in which we operate remains a competitive differentiator in helping us attract good talent as well as high-quality investment opportunities. It also allows us to uphold the trust of our Client and the Singapore public, alongside our peers and partners.
Legal and regulatory risks relate to uncertainties in the interpretation and application of laws and regulations, the enforcement of rights or the management of potential litigation, and breaches in contracts, laws, or regulations. Compliance risk refers to the risk of legal or regulatory sanctions, financial penalty, 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. The implementation of a rigorous compliance programme is underpinned by a strong culture of ethics, risk management, and compliance. 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 act with integrity at all times. Regular and targeted in-person and online training is conducted, and an annual Compliance and Risk Refresher Training and Quiz is administered to reinforce awareness and understanding of key compliance and corporate policies and strengthen GIC’s risk and compliance culture. The compliance programme also requires that all staff adhere to their confidentiality obligations and responsibilities.
The investment and operations teams collaborate with the legal and compliance function to manage legal, regulatory, compliance, and reputational risks arising from the group’s investment and operational activities. The legal and compliance function monitors compliance with applicable laws and regulations, including but not limited to laws on securities trading and investment, competition law requirements, financial crimes and sanctions compliance, licensing, and regulatory approvals and reporting. We expect our investee companies to comply with all applicable laws and regulations and to exercise strong corporate governance and stakeholder engagement practices. 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.
GIC adopts a strong control orientation in managing counterparty credit risk, dealing only with financially sound and reputable counterparties. A stringent selection and approval process is in place for the appointment of counterparties. We monitor and review our counterparty exposures against set limits. Additionally, we employ various risk mitigation measures, such as netting agreements and programmes requiring counterparties to pledge collateral to further safeguard against potential credit risk. Counterparty profiles are reported to senior management, including the GRC and the BRC, on a regular basis.
All GIC employees are responsible for identifying, evaluating, managing, monitoring, and reporting risks across their own areas of responsibility, while complying with the established risk policies, guidelines, and procedures. For instance, a comprehensive risk identification and assessment process undertaken by a cross-functional team is applied to new investment products or strategies. This process ensures that all risks associated with the new product or activity are properly identified and analysed before any investment or engagement.
We continuously assess and monitor the operating environment to ensure that control weaknesses are promptly identified and duly addressed. Throughout the year, key processes are reviewed to assess the operational health of the company 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 BRC on a regular basis.
As GIC continues to embrace advanced information technologies (IT) into our operations, we remain keenly aware of the critical need to upkeep robust cybersecurity defences and are committed to ensuring the resilience of our technology infrastructure. The evolving threat landscape in 2024 has introduced new challenges, including sophisticated ransomware attacks, supply chain vulnerabilities, and the emergence of AI-driven cyber threats. To address these, we have a dedicated team of cybersecurity and IT risk management professionals who uphold our multi-layered cyber defence capabilities and also oversee technology operations and the use of IT across the organisation.
Our cybersecurity strategy is based on the principle of 'defence in depth,’ which involves implementing a series of protective measures across our systems and networks. This ensures that even if one layer of defence is breached, additional layers remain to counter potential threats. Our defence mechanisms include advanced firewalls, intrusion detection systems, data encryption, secure access controls, and regular system updates to mitigate known vulnerabilities.
Our employees are integral to our cybersecurity framework. We conduct regular cybersecurity training programmes to keep staff informed about safe internet practices and to foster a culture of security awareness across GIC. This year, in addition to the increased focus on identifying and mitigating phishing attempts, we also shared insights on topics such as “Artificial Intelligence, Large Language Models, and Security Risks” through bi-monthly educational talks. 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 always conduct themselves in an exemplary manner aligned to our PRIME values, of which they are assessed against in our regular performance appraisals. GIC’s remuneration policies reinforce a prudent risk-taking culture so employees are appropriately incentivised to act in accordance 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.