Core Viewpoint - Singapore's Government Investment Corporation (GIC) was established in 1981 to manage the country's foreign reserves and ensure effective wealth management, focusing on long-term stable returns and risk control [4][6]. Group 1: Background and Establishment of GIC - Singapore's strategic location and policies have led to a high savings rate, making it the first country to accumulate reserves from trade and capital surpluses [4]. - GIC was created to manage the growing foreign reserves and to separate the management of monetary reserves from the central bank's responsibilities, which were previously handled by the Monetary Authority of Singapore (MAS) [8][9]. - The establishment of GIC marked a shift from traditional cash management to a broader investment strategy, including international stocks and bonds [8]. Group 2: Dual Reserve Management System - GIC operates under a "dual-track" reserve management system, where MAS manages monetary reserves for currency stability, while GIC focuses on long-term investments with non-monetary reserves [9][10]. - This system allows for a clear separation of responsibilities, with MAS handling liquidity management and GIC managing government fiscal surpluses [10]. Group 3: Investment Strategy and Performance - GIC's investment strategy has evolved through three phases: initial conservative allocation, strategic adjustment post-2000, and a focus on risk management and diversification since 2012 [13][14][15]. - Over the past 20 years, GIC has achieved an annual nominal return of 5.8% and a real return of 3.9% [13]. - The current asset allocation includes a diversified mix of equities, bonds, real estate, and private equity, reflecting a shift towards emerging markets and a balanced regional investment strategy [16]. Group 4: Governance and Risk Management - GIC employs a long-term investment approach, with a focus on intergenerational equity and a 20-year investment horizon, which is less common among sovereign wealth funds [17]. - The organization has implemented a performance evaluation system based on a rolling 20-year actual return rate, aligning management incentives with long-term investment outcomes [18]. - A comprehensive risk management framework has been established to address systemic risks and enhance investment resilience [19][20].