GIC, along with the Monetary Authority of Singapore (MAS), manages the proceeds from the Special Singapore Government Securities (SSGS) that are issued and guaranteed by the Government, which the CPF Board has invested in with the CPF monies. So while the CPF monies are not directly transferred to GIC for management, one of the sources of funds for the Government’s assets managed by GIC is the proceeds from SSGS.

The Ministry of Finance has elaborated on this:

• Singaporeans’ CPF funds are invested in bonds – SSGS – which are fully guaranteed by the Government. CPF monies are therefore invested entirely in risk-free assets. The Government takes the investment risk in managing SSGS proceeds. This arrangement assures that the CPF Board will be able to pay its members all their monies when due, and the interest that it commits to pay on CPF accounts.

• Ultimately, the investment returns that the Government expects to make over the long term by taking the risks of long-term investments are not hoarded away in the reserves.

• Up to 50% of the net returns from the reserves flow back to Singapore’s Budget through the Net Investment Returns Contribution (NIRC). The long-term returns therefore help to fund spending which benefits Singaporeans.

Find out more.

We manage most of the Government’s financial assets, other than its deposits in the Monetary Authority of Singapore (MAS) and stake in Temasek Holdings. GIC is a fund manager, not an owner of the assets. We receive funds from the Government for long-term management, without regard to the sources, e.g. proceeds from securities issued, Government surpluses.

Find out more about Singapore’s reserves management framework.

1. Positive real returns
   While nominal returns enable comparisons with other institutional investors, it is real returns that provide purchasing power. Over 20 years up to 31 March 2024, the GIC Portfolio’s annualised US$ nominal and real (above global inflation) returns were 5.8% and 3.9% respectively per year.

2. Significant and steady Net Investment Returns (NIR)
   Significant contributions from NIR show that investment returns more than exceed the costs of Government-issued bonds and other liabilities, and provide a worthwhile supplement to the budget. Find out more in the Budget 2024 website.

GIC is a private company wholly owned by the Government of Singapore. We do not own the assets we manage and are paid a fee as the fund manager looking after Singapore’s foreign reserves that are assigned to our care.
The Government, which is represented by the Ministry of Finance in its dealings with GIC, neither directs nor interferes in the company’s investment decisions. It holds the Board accountable for the overall portfolio performance. Although we are Government-owned and manage Singapore’s reserves, our relationship with the Government is that of a fund manager to a client. We operate, invest, and measure our performance in the same way as any global fund management company.

Since we invest long-term in equity and equity-like assets, the main risks we face are political and economic developments which could impact equity returns.