GIC Receives Huge Inflow From Parliament Bill

GIC Receives Huge Inflow From Parliament Bill

Singapore's sovereign wealth fund GIC is set to receive over $130 billion after the city-state’s parliament ordered passed a bill that will reduce the central bank’s reserve.

Around S$185 billion ($138 billion) will be transferred to Singapore’s sovereign wealth fund and major global investor GIC, according to finance minister Lawrence Wong, following a bill passed earlier this week that allows the Monetary Authority of Singapore to buy a new type of government-issued security that would thus reduce its reserve. 

Wong said it would be «inefficient» for the MAS to hold excess reserves which could generate higher returns from the GIC due to a difference in risk profile.

GIC Performance

A major global investor, GIC focuses almost exclusively on investing outside of Singapore and has generated an annualized 20-year rate of 4.3 percent in returns after inflation. 

Although GIC doesn’t disclose the size of assets under management, research firm Global SWF estimates that it is around $744 billion, as of March last year.