Evaluation of GIC Active Management Returns Relative to Passive Strategies and External Managers and Cost-Effectiveness of Active Management Approach

Mr Victor Lye asked the Prime Minister and Minister for Finance (a) whether GIC's active management approach has added value versus comparable passive investment strategies or when compared with the returns by external managers on an asset class by asset class basis; and (b) whether GIC's total management costs are assessed to be reasonable compared to external managers given the investment returns achieved.

We had previously addressed similar questions in this House and the Member may wish to refer to the Hansard records. GIC publishes its investment returns, net of fees, over various time horizons in its annual report. These published returns allow GIC's performance to be assessed against its long-term mandate. They show that GIC has performed reasonably and within expectations given its mandate and risk profile.