The Template Series | GIC & Temasek | One State, Two Opposite Portfolios

A single small city-state runs two sovereign investors built on opposing philosophies — the clearest live proof that the choice between concentration and diversification can be answered by doing both.

Singapore is unusual in running not one sovereign investor but two, deliberately built on opposite philosophies. GIC manages the country’s foreign reserves as a diversified, secretive, globally spread endowment; Temasek owns the state’s commercial equity as a concentrated, transparent, active share‐ holder. Between them they answer, at national scale, the question this series keeps circling — concen‐ trate or diversify? This issue reads the two portfolios side by side, explains why a state splits its capital in two, and draws out the lesson their division of labour holds for any investor.

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