Metrics to Assess GIC’s Performance against New Strategic Portfolio Changes

Parliamentary Question by Mr Low Wu Yang Andre:

To ask the Prime Minister and Minister for Finance (a) whether the Government’s approval of GIC’s new Strategic Portfolio changes its risk appetite or long-term return expectations for GIC; and (b) what public metrics will enable Parliament to assess GIC’s performance against the Strategic Portfolio.

Parliamentary Reply by Second Minister for Finance, Mr Jeffrey Siow:

The new Strategic Portfolio represents the Government’s risk appetite and long-term return expectations for GIC. The Government’s risk appetite remains broadly similar, and we expect GIC to outperform the Strategic Portfolio over the long term through active management.

The Government holds GIC’s Board accountable for GIC’s performance. The primary metric for the Government to evaluate GIC’s investment performance remains the annualised rolling 20-year real rate of return. GIC’s annual report will continue to publish this, and other relevant metrics that would allow us to better assess GIC’s performance.