Empowered and accountable
The government holds the GIC board accountable for portfolio performance, but does not interfere in the company’s investment decisions. The board in turn, while taking overall responsibility for performance, leaves specific investment decisions to GIC management.
Our client, the Singapore government, gives GIC an investment mandate that stipulates the terms of appointment, investment objectives, risk parameters, investment horizon and guidelines for managing the Portfolio. The Auditor-General, who is appointed by the President of Singapore, submits an annual report to the President and Parliament on his audit of the government and other bodies managing public funds. The management also reports to the Ministry of Finance on the risk and performance of the portfolio.
For more information on corporate governance, please see the ‘Report on the Management of the Government Portfolio'.