Principles and Risk Parameters for GIC's Strategic Portfolio Framework

Mr Victor Lye asked the Prime Minister and Minister for Finance (a) what principles and risk parameters determine the GIC's Strategic Portfolio framework; (b) whether there were different performance benchmarks in previous years and how does the current performance benchmark differ from previous benchmarks; (c) whether GIC's performance versus the return expectations of the Strategic Portfolio over five, 10- and 20-year periods will be published; and (d) if not, why not.

The Strategic Portfolio reflects the Government's long-term return expectations and risk appetite. It guides GIC's investment strategy.

Under the previous New Investment Framework, the Government had set a Reference Portfolio to express its long-term risk appetite for GIC's investments. There was no expectation for GIC to outperform the Reference Portfolio as it was not a performance benchmark. However, under the refreshed investment framework, the Strategic Portfolio serves as the baseline. We expect GIC to outperform the Strategic Portfolio over the long term through active management, while operating within approved risk parameters.

As GIC only recently started its transition to the refreshed investment framework on 1 April 2026, it will share more details, including its reporting approach, in its next annual report.