CPF issue: GIC manages CPF monies along with other govt funds: DPM Tharman
Published on Jul 8, 2014 4:40 PM
SINGAPORE - Central Provident Fund (CPF) monies are not managed as a separate entity by the Government of Singapore Investment Corporation (GIC), they are pooled and invested with the rest of the Government's funds, said Deputy Prime Minister Tharman Shanmugaratnam on Tuesday.
This allows GIC to invest for the long term, including investing in riskier assets like equities, real estate and private equity, he said, shedding light on how the Government invests CPF monies, and the role that GIC plays as the Government's fund manager.
Having the GIC manage CPF monies as a standalone fund would require it to be more conservative, and thus make it harder for it to earn as good returns as it currently does.
"It would not be aimed at accepting risks that enable good long-term returns, but at avoiding any short-term shortfalls," he said, responding to questions from four MPs on how CPF monies are invested.
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