• No. This has nothing to do with GIC’s investment performance.
• The purpose of RMGS is to facilitate transfers of foreign assets not needed by MAS for its mandate for long-term investment by GIC.
o MAS is the party that initiates the subscription of RMGS to facilitate the transfer of OFR that is above what MAS requires for conducting monetary policy and ensuring financial stability. MAS can also redeem RMGS if the need arises.
o Such transfers of OFR to the Government have been a longstanding practice. It was why GIC was set up in 1981 – to manage part of the reserves for higher returns without the central bank constraints of liquidity.
• The allocation of Government assets to GIC for investment management does not improve GIC’s investment performance figures.