GIC, Temasek & MAS 01 (May 08 - Aug 09)

[iam802]

Pretty much expected.

I just wish they have avoided jumping in to save those toxic banks. Why be hero? SG is small...dun need to always 'cheong' in front.

[millionairemind]

Pretty much expected.

I just wish they have avoided jumping in to save those toxic banks. Why be hero? SG is small...dun need to always 'cheong' in front.

maybe because of Napolean complex??

[winston]

Nevertheless, she said that 'this is less than the corresponding declines in the MSCI (Singapore) of 44 per cent and the MSCI (Asia ex Japan) of 45 per cent, in Singapore dollar terms over the same period'.

Why do they always compare themselves to the MSCI ? Are they a 100% Equities portfolio only?

Don't they have investments in other Asset Class besides Equities eg Private Equities, Real Estate, Fixed Income, Commodities etc.

In addition, they also managed to obtain a lot of Chinese IPOs which were not available to a lot of people.

A more meaningful comparison is to the long term risk free interest rate. 3%? 4%?

[cif5000]

A more meaningful comparison is to the long term risk free interest rate. 3%? 4%?

Or we can also compare with the "Under the Pillow" performance.

[ucypmas]

You will need a mattress. After all its still $125 billion. When it goes to $40 billion we can switch to using pillows.

[ucypmas]

On a more serious note, their recent investment ideas were lessons in recklessness and incompetence, that we can all benefit from. Looking at their performance, their original portfolio of mainly domestic companies had benefited from Singapore's spectacular economic growth over the past 20 years, so their 18% p.a. prior to 2008 was nothing to shout about.

The recent forays however, betrays their lack of ability and common sense when it comes to making investment decisions. Lets see what they have bought recently

ABC Learning - in bankruptcy
Merrill Lynch (now Bank of America) - on the verge of bankruptcy
Shin Corp - turned into a political football and run into the ditch

These are not kacang puteh investments, the one or two small positions that got into trouble out of the entire portfolio, which we all have from time to time. The cost above are in the billions. In addition, they have been egging the local TLCs to go abroad and invest in whatever, wherever. From that we got things like Optus, Dao Heng etc., all massive destruction of shareholder wealth for their respective companies.

SINGAPORE'S state-owned investment companies have not been spared the fallout from the global market downturn.
The net portfolio value of Temasek Holdings fell 31 per cent between March 31 and Nov 30 last year, from $185 billion to $127 billion, Senior Minister of State for Finance Lim Hwee Hua revealed in Parliament on Tuesday.

The Government of Singapore Investment Corporation (GIC) also posted a decline in the value of its investments, but Mrs Lim did not reveal the numbers.

She said, however, that both Temasek and GIC have not done as badly as other market indices.

Temasek's 31 per cent drop in portfolio value was less than the 44 per cent plunge in the MSCI Singapore Index and the 45 per cent decline in the MSCI Asia ex-Japan Index in the same period, Mrs Lim said.

As for GIC, its investments have 'fallen by much less than the decline in global equity markets indices of 42 per cent for 2008'.

Mrs Lim also reiterated that the two companies are long-term investors, and should be evaluated as such.

'This is not the first major decline in markets that they have seen, and will certainly not be their last,' she said.

Despite the booms and busts over the years, Temasek has achieved annualised returns of about 13 per cent over the 20 years to late 2008.

GIC's 20-year average return was 5.8 per cent as at March last year. While this figure will fall for March this year, it 'will not be sharply down', Mrs Lim said.

'GIC and Temasek have the ability and resources to weather the ups and downs, over multiple economic and market cycles,' she added.

'They do not have to sell in panic in a market downturn and are in fact in an advantageous position to invest in good quality assets at prices that are attractive from a long-term perspective during a downturn.

'The Government is confident that they will continue to deliver good long-term returns within the risk limits set.'

Note: Edit to insert quotes

[winston]

Price was 1.46 in Oct, 2008. Placement was at 7.85...

Government of Singapore Investment Corporation Pte Ltd (GIC) has more than doubled its long position in China National Building Material (03323) (CNBM), after it acquired 27 million H shares of the company on February 5, the Stock Exchange's SDI information shows.

After the acquisition, GIC's long position in the company increased to 5.78% from 2.78%. The shares were traded on the Stock Exchange at $7.93 per share, or $214 million in total.

CNBM placed 300 million H shares on the same day at $7.85 per share.

[LenaHuat]

Why is this $58billion woman stepping down only in Oct 2009?

[LenaHuat]

Gonna post this backhanded advice

Feb 11, 2009
Ho Ching in better position to support PM
I REFER to last Saturday's report, 'Ho Ching to leave Temasek', which stated that Ms Ho Ching was relinquishing her post as chief executive officer of Temasek Holdings.
This is news I have been hoping for, not because I do not like her. On the contrary, I think she is a capable corporate leader and has been managing Temasek Holdings well.

I hope she will not take up any other corporate post but instead stay by the side of Prime Minister Lee Hsien Loong to assist him in the way that her mother-in-law, Madam Kwa Geok Choo assisted Minister Mentor Lee Kuan Yew in his political life.

PM Lee, I feel, is somewhat handicapped in that his wife is not with him most of the time and this is a disadvantage which should not be. Now that Ms Ho Ching has decided to give up her own career, I hope she will accompany the Prime Minister on his duties. With her intellect, she can give good advice or feedback on certain matters which others may not be in the position to do.

Let us hope she will emulate Madam Kwa, without whose support and advice, I believe, MM Lee may not be as successful as he is.

Albert Tye

[winston]

TOL:-

Wonder whether the Ang Moh would be diversifying the portfolio more into Commodities?

Wonder what would happen to all those GLCs?