GIC has implemented a new investment framework to manage its portfolio in the changing environment post the global financial crisis. The new framework capitalises on GIC’s core strengths: a long-term perspective, a global presence, a skilled and experienced team, and the ability to invest in cross-asset opportunities.
This new investment framework explicitly isolates three drivers of GIC’s long-term performance. First, the Reference Portfolio, based on a balance of 65% global equity and 35% bond market indices, defines the amount of risk the Government is prepared to have GIC take. Second, the Policy Portfolio represents GIC’s asset allocation strategy to improve long-term returns compared to the passive Reference Portfolio. Third, the Active Portfolio allows the GIC management to execute skill-based and opportunistic strategies.
In the annual report, GIC reported steady long-term investment returns on the foreign reserves of the Singapore Government.
