(http://www.gic.com.

sg/)

Sustainable return, acceptable risk

GIC invests the reserves placed in our care by taking acceptable risks to
deliver the best possible long-term return.
C a p a b ilitie s
GIC strives to make the most of every investment opportunity to enhance returns on a total portfolio basis
without taking too much risk. We invest primarily through our three investment groups public markets, private
equity and real estate. Our investment teams achieve strong performance over time by leveraging GICs core
strengths: a long-term investment perspective; a global presence; and capabilities to invest in cross-asset
opportunities.
Pu b lic Ma rke t I n ve stme n ts invests in publicly-traded markets, including equity and fixed income. GIC
pursues both active and passive management strategies in equity investing. Our team of in-house research
analysts and experienced portfolio managers conduct in-depth due diligence and research that enable us to
identify undervalued stocks with the potential to generate good returns over the long-term. In fixed income,
our portfolio managers employ a range of investment strategies to add value to the portfolio, including yield
curve analysis, and credit, interest-rate duration and currency management.
Priva te Eq u ity I n ve stme n ts invests through funds as well as directly in companies, partnering with our
fund managers and management teams to help world-class businesses achieve their objectives. We are one
of the largest investors in private equity funds and currently have over 100 active relationships with fund
managers globally. We have also invested directly in more than 1000 companies globally across multiple
sectors.
R e a l Esta te invests in prime real estate worldwide. We manage a multi-billion dollar portfolio of direct and
indirect property investments with more than 350 investments in over 40 countries, across most sectors. We
are able to capitalise on the best investment and divestment opportunities as we operate in the entire real
estate universe, from brick-and-mortar assets to public equities such as real estate operating companies,
real estate investment trusts, and real estate-related debt instruments.

I n te gra te d d ive rsity

Our deep expertise and in-house experience across asset classes enables natural cross-asset class
synergies in deal sourcing, sharing of market knowledge and execution of investments.
Our investment strategy is one of integrated diversity. The new and unique investment opportunities which
continually arise call for GIC to operate as one integrated organization, fully exploiting our range of in-house
asset class expertise and experience to optimise investment results. Our extensive team of on-the-ground
specialists at our wide network of offices have their fingers firmly on the pulse of the worlds markets,
enabling us to respond quickly to investment opportunities.

Ho w we in ve st
Our investment framework distinguishes the three drivers of long-term performance for GIC: the performance
of global markets, represented by the Reference Portfolio; our asset allocation strategy, as seen in the Policy
Portfolio; and skill-based strategies, as embodied in our Active Portfolio.
The Reference Portfolio comprises 65% global equities and 35% global bonds, which is a generally accepted
passive alternative portfolio. It represents the Governments risk and return tolerance. The Reference
Portfolio is not a short-term benchmark for GIC. In fact, GIC can only benefit from long-term investing if it is
prepared to tolerate short-term losses or underperformance relative to the market indices from time to time.
The Policy Portfolio is the central component of the investment framework. It represents the key driver of
returns over the long-term. The six core asset classes of the Policy Portfolio are:
Developed market equities
Emerging market equities
Nominal bonds and cash
Inflation-linked bonds
Private equity
Real estate

The Active Portfolio comprises skill-based strategies to add value to the Policy Portfolio. These strategies are
limited by a risk budget set by the GIC board. The strategies are funded by the sale of assets in the Policy
Portfolio so they must generate returns sufficiently higher to compensate for the cost of capital and the
higher levels of risk entailed.

Overview (/index.php/our-business/overview)
Investment Framework (/index.php/our-business/investment-framework)
Operations (/index.php/our-business/operations)

See our latest GIC Report

2013/2014

(http://www.gic.com.sg/report/report-2013-2014/)
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