Limits for Exposure to Different Asset Classes for National Sovereign Wealth Funds

Assoc Prof Jamus Jerome Lim asked the Deputy Prime Minister and Minister for Finance in view of the distinct investment and development mandates for the two national sovereign wealth funds, whether the Ministry issues guidelines to each on acceptable limits for exposure to different asset classes, including alternative assets, such as cryptocurrency and cryptocurrency exchanges.

The Government expects GIC and Temasek to deliver good, long-term returns on their portfolios, in line with their respective mandates. The Government sets out its risk tolerance to the investment entities but does not prescribe guidelines on the allocations of specific assets or asset classes for our investment entities, whether for cryptocurrencies or other assets. We systematically review the overall risks of the whole portfolio of assets invested by the entities. This includes monitoring whether there is appropriate diversification across asset classes, sectors and geographies.

The Government holds the boards and management teams of GIC and Temasek responsible for formulating their respective investment and risk management strategies in accordance with the Government's overall risk tolerance.