Economics & Strategy

"GIC takes a much longer time horizon than most sell-side or even buy-side research outfits. We systematically look out two to three years, or even five to ten years, enabling us to capitalise on medium to long-term trends not examined by the market and to be more effective in contributing to both investment strategy and investment policy."
- Mr Yeoh Lam Keong, Director, Economics & Strategy

The Economics & Strategy Department (ESD) is the macro-analysis nerve centre of GIC. Through the analysis of economic and political fundamentals as well as financial markets, ESD participates actively in investment policy and investment strategy, especially in strategic and tactical asset allocation, an important driver of GIC's portfolio returns. ESD is also involved in currency strategy.

ESD has four regional strategy groups that cover global economies and the major asset classes like stocks, bonds, currencies and commodities. Its activities are supported by a Business and Information Unit, and a dedicated team of research assistants.

GIC is one of the few large institutional investors to have a group of investment professionals dedicated to macro research and strategy formulation. ESD's work differs from many economics departments in the financial sector in that it does not simply monitor or forecast the economic developments of a country or region. Rather, ESD further strives to understand how changes in the economy or geopolitics move financial markets. On the basis of its own research and excellent access to the research of leading global networks, ESD develops investment ideas and strategies.