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

[winston]

Inflows ? As far as I'm concerned, I see outflows only as indicated by the low Average Daily Turnover on the HKSE and the weak HKD ...

Hot-money inflows could cause economies to overheat: Tony Tan
By Ryan Huang

SINGAPORE : Hot-money inflows could cause economies to overheat and create asset bubbles if they are not well managed, warned Government of Singapore Investment Corp (GIC) deputy chairman Tony Tan.

The comments came in remarks he made at an investment panel in Davos.

Despite such concerns, he cautioned countries not to impose capital controls that could hurt long-term capital investments.

Dr Tan said: "It is important that capital-recipient countries design their capital controls in a way that clearly distinguishes between short-term money and long-term capital.

"If governments closed their capital markets to long-term investors, recipient countries will face higher capital costs, while investors will see their opportunity set shrink."

In his remarks, Dr Tan highlighted the dichotomy between strong demand for investment capital and a growing reluctance among investors to part with their money for the long term.

Global investment demand may rise to US$24 trillion in 2030, compared with US$11 trillion now, Dr Tan said, citing a McKinsey study.

In the face of strong demand for funds, long-term investing will decline, driven by "more volatile markets; the tendency by companies and managements to focus only on the short term; and the need for liquidity by traditional long-term investors," he said.

"The great financial crisis may have lessened the appetite for taking illiquidity risks by some investors like insurance companies and endowments," Dr Tan added.

The increase in demand for long-term capital and its shrinking supply may "reverse the low interest-rate environment the world has enjoyed the last few decades," he said.

- CNA/al

http://www.channelnewsasia.com/stories/ ... 79/1/.html

[kennynah]

clearly, i am not the target audience for his overly complicated speech... understandably so, since it was delivered in Davos, where the more you sound knowledgeable by stringing together financial jargons, the more applause you get for telling others how little they know abt financial policies....

well done, mr tan....

[winston]

GIC Says U.S. to Remain Focus of Investments as Growth Slows
By Christine Harper and Ambereen Choudhury

The U.S. will remain the Government of Singapore Investment Corp.’s biggest area for investments for years, even as emerging markets grow faster, Deputy Chairman Tony Tan said.

“There is a major transfer of wealth from the developed countries to the developing countries in Asia,” Tan said today in an interview at the World Economic Forum meeting in Davos, Switzerland.

“But it does not mean that for us in GIC, as an international investor, that we do not see opportunities, certainly in the U.S. but even in Europe, because prices have gone so low.”

( Prices are so low in the US and Europe ? )

“The U.S. still represents the single largest area of investment for GIC, even today, and I don’t see that changing for many years to come,” he said. “The U.S. has got the most diversified, deepest and most resilient economy in the world and the entrepreneurial nature of the U.S. economy -- the ability to attract talent from all around the world -- that’s your fundamental strength.”

GIC, which oversees about $100 billion of reserves, bought stakes in securities firms including Citigroup Inc. and UBS AG during the credit crisis of 2008.

http://www.bloomberg.com/news/2011-01-2 ... slows.html

[iam802]

u know lar..

they have those 'dynamic portfolio strategy'... that allows them to buy and hold long term like 60 years into the future....

different level of players lar.. we hold 1 day fell 7%..the face turn green.

theirs fell 80%...can still 'grin grin'

[millionairemind]

u know lar..

they have those 'dynamic portfolio strategy'... that allows them to buy and hold long term like 60 years into the future....

different level of players lar.. we hold 1 day fell 7%..the face turn green.

theirs fell 80%...can still 'grin grin'

Then if by miracle their purchase turns around and made them some money (only with the implicit backing of the US gahmen), they will splash the news across ST saying that they have seen it all along...

[winston]

I also have some dogs in my portfolio and will only sell if it gets to very attractive level ...

GIC says intends to hold Citi, UBS stakes for long term-reports

SINGAPORE, Jan 31 (Reuters) - Singapore's GIC [GIC.UL], the biggest shareholder in Citigroup and UBS , intends to hold its stakes in the two banks for the long term and will sell only if it gets a very attractive offer, executive director Tony Tan said over the weekend.

GIC, or Government of Singapore Investment Corp, also saw investment opportunities in the United States and Europe as asset prices have come down significantly, Tan said in interviews with the Straits Times and Bloomberg in the Swiss town of Davos.

GIC, which manages over $200 billion according to most analyst estimates, bought stakes in Citi and UBS during the financial crisis. It has since sold about half its stake in the U.S. lender.


Source: Reuters

[iam802]

Article mentions possible impact on SingTel as well

--

Temasek's investment in Thailand shaken
http://www.bangkokpost.com/business/tel ... and-shaken

The Singaporean government's investment arm, Temasek Holdings, is expected to fight any attempts by TOT Plc to seek billions of baht in compensation from Thai telecoms companies in which it has holdings, say observers.


OT announced on Tuesday it will seek 214.7 billion baht in compensation from local telecom operators - including AIS, which is owned by Temasek - for unpaid access charges and losses resulting from improper policy changes made by past governments.

The news, which shook the Thai share market, is likely to cast Temasek's Thai investments under a cloud, said a Post Today writer.

Investments in the Thai share market by Temasek face a period of uncertainty, he said.

Temasek Holdings has invested in the telecommunications, energy and hospital sectors here.

Some believe its willingness to invest in Thailand was tied to the fortunes of former prime minister Thaksin Shinawatra.

Once Thaksin was toppled from power, Temasek Holdings' investments in Thailand started to look less attractive to the company.

Now, the findings of a committee appointed under Section 22 of the Joint Public/Private Venture Act 1992 could shake up Temasek's investments still further.

The committee recommended that state-owned TOT sue Advanced Info Services (AIS), its mobile phone concessionaire, for over 70 billion baht in damages caused by amendments to its concession contract during the time Thaksin was in power.

Singapore telecoms giant Singtel and Temasek Holdings stand to be affected, as they are the major shareholders in Shin Corp and AIS.

If TOT sues AIS and wins, AIS may find it hard to survive, as it would have to pay a huge sum in damages.

Finance Minister Korn Chatikavanij revealed that Singtel executives came to see him earlier last month to discuss the AIS issue.

Mr Korn said he would treat the Singaporean investors fairly, as Singtel helped develop the communications industry in Thailand.


.....
....

[winston]

Hmmm..... wonder how's the Currency Loss ie. between USD and SGD ?


Singapore wealth fund GIC says US will remain prime destination

SINGAPORE, Feb 24 (Reuters) - The Singapore government's $200 billion sovereign wealth fund said the United States, which accounts for more than a third of its investments, will continue to be a prime destination for years to come.

Tony Tan, the Government of Singapore Investment Corp's (GIC) [GIC.UL] deputy chairman, said in New York on Wednesday that despite global economic rebalancing and rapid growth in China and other emerging economies, the United States would remain the "single most important source of global prosperity."

"Despite the shift in economic power, and GIC's desire to take advantage of opportunities in the emerging world, the U.S. will continue to be a prime destination for GIC's investments for years to come," he said.

"More than a third of GIC's investments are in the U.S." A copy of his speech was made available in Singapore.

GIC does not disclose the size of its fund or detail its investments. It says on its website that it manages "well over" $100 billion in over 40 countries but most analysts estimate the fund's assets are between $200 billion and $300 billion.

GIC's key investments include a substantial stake in Citigroup , which it helped rescue in the aftermath of the financial crisis. According to Reuters data, it is the biggest shareholder in the U.S. bank with a 3.86 percent stake.

According to GIC's last annual report issued in September, the United States accounts for 36 percent of its investments, the highest of any country.

Tan said the U.S. economy was showing signs of recovery following the government's stimulus package, the Fed's second round of quantitative easing and increased bank lending.


( Increased Bank Lending ? )

"Economists are becoming more confident that a self-sustaining recovery in consumer and business spending is beginning to take hold in the United States," he said.

"This year, U.S. growth may reach 4 percent, a substantial improvement over what was expected even two months ago." However, unemployment, housing sector weakness and the prospect of high inflation remain risks, Tan said.

In addition, the ouster of Egyptian President Hosni Mubarak and unrest across the Arab world had escalated geopolitical and global policy risk, he said.


Source: Reuters

[winston]

I've always cautioned people about the American "expert" commenting on things in Asia and vice-versa. It's actually very simple. If you are not on the ground, then you are not the "expert" ...

Singapore fund chief upbeat on U.S. economy-WSJ

NEW YORK, March 6 (Reuters) - The head of Singapore's sovereign wealth fund, which has more than one-third of its holdings in the United States, says Americans are being too downbeat about the U.S. economy, according to an interview with the Wall Street Journal.

Tony Tan Keng Yam, executive director of the Government of Singapore Investment Corp, said, Americans "don't see the potential in their own economy, which is one of the most innovative, open economies in the world," according to the article.

Tan said he expected the U.S. economy would grow at a rate of between 4 percent and 4.5 percent. A Reuters poll of almost 70 economists released in February suggests U.S. gross domestic product will rise 3.2 percent on an annualized basis in 2011.

http://www.reuters.com/article/2011/03/ ... 6720110306

[iam802]

For me, when I started out learning the trading/investment from fellow members here, I always remembered 1 of the worst mistakes that Temasek did.

Screen shot 2011-04-19 at PM 11.11.53.png

Screen shot 2011-04-19 at PM 11.14.25.png

To this date, I cannot figure out why they want to pump money in ABC Learning.

Is anyone accountable for the mistake? If no one is accountable, then is there a need to pay for top talents?