I just ended a 24 weeks internship at the Government of Singapore Investment Corporation (GIC).
In case you do not know what’s GIC, it is one of the sovereign wealth funds that invest Singapore’s reserves on behalf of the Singapore Government – the other is Temasek Holdings.
GIC has 2 goals
1. To preserve the long-term international purchasing power of Singapore’s reserves placed under its care.
2. After achieving 1, it proceeds to enhance the long-term international purchasing power of Singapore’s reserves placed under its care.
Simply put, its job is to first and foremost provide returns that match the global inflation rate (preserve purchasing power). After achieving that, it then tries to invest and earn a return above that global inflation rate.
Actually, over 20 years, GIC has achieved an annualised 3.4% return ABOVE the global inflation rate (AKA if the global inflation rate is 3%, GIC’s return was 6.4%).
Alright, now that you have read