Singapore - GIC, Temasek & MAS 02 (Sep 09 - Jul 11)

[LenaHuat]

Having sold big stakes in Chinese banks, what is Temasek chasing after? I gonna put on my thinking cap for the next few days.

[iam802]

maybe tech IPO (Zynga, Facebook)..one more run before they play a more defensive game.

[LenaHuat]

Here's their portfolio allocation before the sale:
http://www.temasek.com.sg/our_portfolio_portfolio_highlights_sector.htm

I have a hunch. Will broadcast it when I get tired of the weight of my thinking cap

[iam802]

All in.

And developed the South part of SG and all the way to JB with MY.

Funds ready to deploy comes 2012 to 2013.

But, what do I know. Not too sure if the funds for the development has been allocated.

[LenaHuat]

Hi iam802
Good minds flock together . Must certainly include Iskandar.

[LenaHuat]

If this hunch is right, what stocks to buy Need to put on the thinking cap again OK, I am turning my attention to Taiwan TV. Happy trading 2nite.

[winston]

Singapore Temasek's portfolio rose 3.8 pct y/y in 2010/11

SINGAPORE, July 7(Reuters) - Singapore state investor Temasek Holdings [TEM.UL] said on Thursday its portfolio rose 3.8 percent year-on-year to S$193 billion ($157 billion) at the end of March.

The sovereign investor said 77 percent of its portfolio was in Asia as of end-March, fractionally down from 78 percent a year previously.

"We will continue to invest in the transforming economies of Asia and Latin America," Temasek CEO Ho Ching said in a statement.

"At the same time, we remain open and ready to participate in opportunities in mature markets such as our recent investments in the United States."

Source: Reuters

[iam802]

Following up on Temasek Holdings again..


--
http://business.asiaone.com/Business/Ne ... 88094.html

..

For the year, Temasek's total return to its shareholder, the Government, was a "modest" 4.6 per cent, said the investment company.

...

With such liquidity, TH only return 4.6%.

Going back in time, the govt (LHL?) have said that in the years ahead, it is not possible to see growth of double digit growth for the GDP . They are targeting 3% and 5% if SG is lucky.

Let's stretch the discussion a bit further. I assume the SRS that the govt. sell to CPF come with some kind of return. To me, it is like a bond (<< Please correct me if I am wrong). Most of the money from the CPF would have come from the baby boomers prime years. These SRS will be sold to CPF during in the 80s (when SG was still experiencing high growth).

So, the question is, what kind of returns does SRS promise to CPF? If SG is growing at 8% at that time, surely SRS will need to promise 10% or more in returns. Or it could be a fixed 8% plus variable. If not, why would CPF even bother to buy those SRS?

Using this as a basis for further discussion, with TH 4.6% returns, is this figure enough to pay CPF when the time comes?

Note:
We have occasionally discuss how pension funds from overseas face redemption. Likewise, CPF faces the same issue. And at some point, various batch of SRS will mature and face redemption.

How is this being handled? For GIC and TH, what returns are they targeting in order to ensure that they stay ahead of CPF redemption?

[kennynah]

who really knows the returns on investments by gic n th ?? what audit is there??

[LenaHuat]

Let me give 1 cent worth

CPF's accounts are audited by KPMG, go and read it.
It is relatively easy to understand the modus operandi of the Board.
Read note 6 (Investments).
Members' contributions are largely invested in special SGS, which are issued specifically for CPF. No market exists for these special classes of SGS. They are FRNs (Floating Rate Notes) which carry coupon rates of 2.5%/3.5%/4%/5% which are income matched with CPF's liabilities.

In short, our CPF $$ are bundled over to the Ministry of Finance.
Both the GIC and TH are exempt private companies registered under the Companies Act. Hence, no accounts are available in the public domain. Read GIC's charter, it is an investment manager for MOF. Once, I turned up at the Registrar and wanted to buy a copy of TH's financial accounts

The mystery thereby lies firstly with MOF.
How does MOF parcel out the funds to GIC and Temasek. I suspect the bulk of the CPF funds are farmed out to GIC for management.

The next mystery lies in GIC. I think they have armies of external fund managers. IMHO, the most interesting thing to discover is their asset allocation and the ROI. U can read it below.
http://www.gic.com.sg/data/pdf/GIC_Report_2010.pdf