How does GIC decide where to invest?
The GIC Board approves a policy asset mix. This comprises policy weights for different asset classes such as equities, bonds and cash. The Board also approves long term allocations for private equity and real estate investments. The policy asset allocation is periodically reviewed, taking into account the fit between the long-term expected risk-return profile of the assets and GIC’s investment objective. Within the respective asset classes, GIC investment professionals manage the allocated funds to achieve GIC’s investment objective of preserving the purchasing power of Singapore’s reserves. These involve decisions about which countries, sectors and companies to invest the funds in.
