Government of Singapore Investment Corporation (GIC)

Government of Singapore Investment Corporation (GIC)

Overview

The Government of Singapore Investment Corporation (GIC), officially GIC Private Limited, is Singapore’s sovereign wealth fund manager. Established in 1981 to invest the country’s reserves over a longer horizon and in higher-yielding asset classes, GIC is one of three entities involved in managing Singapore’s reserves alongside the Monetary Authority of Singapore (MAS) and Temasek Holdings. It manages a large global portfolio—reported at roughly US$390–400 billion in assets.

Mandate and Clients

GIC’s primary mandate is to preserve and enhance the international purchasing power of the funds placed under its management by investing for the long term. It manages funds on behalf of:
* The Government of Singapore
* The Monetary Authority of Singapore

Governance and Structure

GIC operates as a “Fifth Schedule” corporation under Singapore law, which gives it a corporate structure with two notable features:
* Certain decisions—such as appointing or removing directors and key managers—require the approval of the President of Singapore.
* Its financial statements are audited by Singapore’s auditor-general.

Board and senior positions have included both current or former government officials and independent directors from the private sector.

Investment Approach

• Diversified global portfolio across multiple asset classes.
• Predominantly internally managed—about 80% of assets are overseen in-house.
• Long-term, opportunistic approach: GIC has historically kept a low public profile but has acted opportunistically during major market dislocations.

Transparency and Reporting

GIC limits disclosure of exact asset-level details to avoid revealing the size and composition of Singapore’s reserves, which could create market vulnerabilities. Instead, it publishes aggregated performance and risk metrics over multi-year horizons (5-, 10-, and 20-year figures).

Performance

Over the 20-year period ending 31 March 2019, GIC reported an annualized return of 3.4% above global inflation, effectively nearly doubling the international purchasing power of the reserves over that period.

International Standards

GIC was an early participant in developing the Santiago Principles—voluntary guidelines promoting governance, accountability, transparency, and prudent investment practices for sovereign wealth funds. The Santiago Principles are now observed by many sovereign wealth funds worldwide.

Key Takeaways

• GIC is Singapore’s principal sovereign wealth fund manager, focused on long-term preservation and enhancement of international purchasing power.
• It combines a corporate governance framework with special oversight features tied to Singapore’s presidency and public audit.
• The fund is largely managed internally and emphasizes long-term, disciplined investing, with selective opportunism during crises.
• GIC follows international best practices, including adherence to the Santiago Principles.