GIC was established on 22 May 1981 as a private company under the Companies' Act, wholly owned by the Government of Singapore. GIC reports to its own Board of Directors which provides overall guidance and direction. Although GIC is government-owned and manages government funds, the relationship between GIC and the government is that of a fund manager and a client.
GIC operates, invests, measures its performance and rewards its employees no differently from a global fund management company.
GIC is incorporated under the Companies Act and is wholly owned by the Government of Singapore. The management reports to its own Board of Directors that meets at least twice a year. Click here to view GIC's Board of Directors.
As it manages government assets and the country's reserves, GIC has been designated, under the Constitution of Singapore, as a "Fifth Schedule" company. As a "Fifth Schedule" company (click here for more information on GIC's legal status), GIC has to submit its financial statements and budget to the President of Singapore. It is also regularly audited by the Auditor-General.
GIC does not own the funds it manages, but manages them on behalf of its clients, the Government of Singapore and the Monetary Authority of Singapore. The Ministry of Finance represents the Government in dealing with GIC.
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.
GIC's investment results have been good. Over a period of 25 years to March 2006, the annual rate of return on the foreign reserves managed by GIC averaged 9.5% in US dollar terms, and 8.2% in Singapore dollar terms. The average rate of return over global inflation was 5.3% per annum.
GIC has fulfilled its mandate of preserving the international purchasing power of our reserves and GIC has significantly enhanced the value of Singapore's savings.
GIC measures its performance in several ways. Firstly, GIC has a wealth enhancement objective, which is to achieve a real rate of return over and above G3 inflation, the weighted average inflation rate of the United States, Japan and the European Union. Since inception, GIC has met this objective.
In addition, GIC benchmarks the performance of its investment groups against the relevant industry indices. For instance, the Morgan Stanley Capital International (MSCI) World Equity Index for equities and an enhanced Lehman Brothers World Bond Index for bonds. GIC has added value against these benchmarks.
GIC has about 1000 staff around the world.
Certainly. GIC invests in more than 40 countries across a wide spectrum of industries. It needs to tap talent everywhere and understand markets around the world. GIC would be severely handicapped if it did not assemble sufficient indigenous talent for those countries it invests in. For the best possible performance, GIC must assemble the strongest international team it can find.
Currently, over 40% of GIC's investment professionals are foreigners, and employees representing more than 25 different nationalities work in GIC offices around the world.
GIC values people with integrity, a desire to excel and team spirit. These qualities reflect GIC's corporate values. Potential employees should also have a keen interest in the world around them and a desire to build a long-term career in the fund management industry.
GIC strives to be an outstanding organisation, offering attractive and satisfying career prospects for top talent. Its training programmes support this objective, which aims to enable its employees to contribute meaningfully in their respective areas of work and to meet their professional and personal aspirations.
If you are looking to join GIC as an Investment Officer, you need not have prior knowledge of Finance and Economics. GIC will provide you with the prerequisite training and exposure to become an effective investment manager.
As a new Investment Officer, you will be attached to different departments during your initial months with GIC and mentored by experienced professionals. The attachments will provide you with an integrated view of the industry and GIC's business. Thereafter, you will be posted to an asset department where you continue to learn on the job. Few fund managers can match the asset class diversity and global coverage of GIC.
GIC will subsequently sponsor you for the Chartered Financial Analyst qualification and for various other courses. For further exposure, you may also be attached overseas to top fund management companies or posted to one of GIC's overseas offices.
Yes, GIC offers internship opportunities of eight weeks or more in Singapore and its overseas offices. Both undergraduates and postgraduates of any nationality can apply. Internships, depending on current needs, may be with any of GIC's departments.
GIC believes that meeting its employees' career aspirations is key to nurturing, motivating and retaining them. For example, GIC gives its portfolio managers and analysts the chance to exercise discretion and manage considerable portfolios very early in their careers. If you achieve good results, you can look forward to excellent career progression.
Managing the reserves of a nation is a noble mission and carries a heavy responsibility. However, GIC has a warm, friendly and collegial working environment. Although highly performance-oriented, the atmosphere is co-operative and interdependent. Managers and senior employees are always willing to share their experience with younger colleagues.
GIC also has its very own Recreation Club, which takes play seriously and is very active in organising a wide range of social, sporting and community service events.
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