* Portfolio at $122 bln end-July; August in line with indexes
* Buys stakes in S.Korea's ENK and Brazil's San Antonio
* Still open to new investments in financials
Quote:
SINGAPORE, Sept 17 - Temasek recovered from most of its portfolio losses this year as markets rallied, saving the Singapore wealth fund's blushes after ill-timed exits from Wall Street banks and giving it firepower for new deals.
CEO Ho Ching said any dip in markets could be a buying opportunity for the $122 billion investment firm that is still open to buying financials and investing in emerging markets.
Temasek [TEM.UL] lost over an estimated $4 billion on selling its stakes in Bank of America <BAC.N> and Barclays <BARC.L>, but said it had benefited from investing in rights issues for its portfolio firms such as Standard Chartered <STAN.L> since these investments more than doubled by the end of July.
"We are in a very good cash position," Ho said at Temasek's annual review on Thursday. "We think there are lots of opportunities in over the long-term."
The review showed Temasek's portfolio slumped S$55 billion or around 30 percent to S$130 billion in the year to end-March. Its portfolio then rose 32 percent to S$172 billion by end-July, and its August performance was in line with market indexes, Ho said.
The firm's value-at-risk was S$28 billion at the end of March, meaning it had a 16 percent probability it would lose that amount or more this financial year, down from a value-at-risk of S$40 billion a year earlier, the review said.
"We believe the worst of the global meltdown risks are behind us," said Ho. "While there are some green shoots of growth, some structural risks still remain for the medium term," she said.
Temasek is Singapore's second-biggest sovereign wealth fund after the Government of Singapore Investment Corp.
Ho, the wife of Singapore's prime minister, said Temasek's board would still search for her successor after CEO-designate and former BHP Billiton chief Chip Goodyear unexpectedly resigned in July over strategic differences.
"The big issue is new leadership. Strategy comes from the leadership. Until they sort out the issue of leadership, nobody is going to be clear what the strategy is," said the head of a private equity firm in Singapore, who declined to be identified.
For a newsmaker on Ho, click [ID:SIN529783]
PROFIT HIT
The investment company, whose sole shareholder is Singapore's Ministry of Finance, said net profit for the financial year fell two-thirds to S$6.2 billion, as it was hit by losses on financial stocks and lower contributions from earnings by its portfolio firms such as DBS Group <DBSM.SI>.
"Like investors everywhere they're just relieved that the market pulled back from the brink," said David Cohen of Action Economics in Singapore.
The role of sovereign wealth funds around the world, which oversee about $3 trillion in assets, changed from a key source of capital for struggling Western banks early in the crisis, to governments redeploying funds to stabilise home markets.
For a factbox on Temasek, click [ID:nSIN192308].
Temasek said in its annual review it had bought a 19.5 percent stake in South Korea's ENK, a supplier of cylinders for compressed natural gas, and 15.4 percent of Brazil oilfield services firm San Antonio International.
Temasek has published an annual report since 2004, part of efforts to be more transparent. Wealth funds have come under scrutiny from Western governments worried their investments may be politically motivated. (Additional reporting by Nopporn Wong-Anan and Brenda Goh; Editing by Anshuman Daga))
__________________
Who are ya? where did you come from? where are you going? 1 googol = 1.0 × 10^100
Temasek Holdings' portfolio improved by $42 billion as of July 2009 from March. In that period, its portfolio value stood at $172 billion. This represents 93% of its March 31, 2008, year-end peak of $185 billion.
According to a press statement from Temasek, this reflected the market recovery along with Temasek's active and continuing reshaping of its portfolio.
This also shows an increase from March 31, 2009, when Temasek's portfolio value stood at $130 billion by market value, which is up from $90 billion five years ago.
Group net profit for the year ended in that period was $6 billion.
This is about one third the record $18 billion for the preceding financial year.
The drop in group profit reflected the lower contributions from both its portfolio companies and Temasek's investment activities.
The investment company revealed the figures as it released its Temasek Review 2009 for the latest financial year today.
Mr Dhanabalan, Chairman of Temasek Holdings said: "The markets have steadied since March this year. Our portfolio value and total shareholder return (TSR) have recovered broadly in line with the markets. Taken over the longer periods, our portfolio performance has been creditable."
He continued: "So, despite a year of extreme volatility, we are confident that we have a robust portfolio for the long term."
Portfolio activity
In the year under review, Temasek made investments of $9 billion and divestments of $16 billion.
Investments included $3 billion into existing portfolio companies such as Standard Chartered, DBS Group Holdings and CapitaLand.
In addition, Temasek invested selectively in companies such as Hong Kong's Li & Fung, a leader in supply chain management for brands and retailers.
In June this year, Temasek re-invested in Olam International, a Singapore-based leader in supply chain management for agricultural products and food ingredients.
Temasek divested its stakes in several companies, including its two power generation companies in Singapore (Senoko Power and PowerSeraya), PT Bank Internasional Indonesia, Bank of America, China Minsheng Bank and SNP Corporation.
Ms Ho Ching, Chief Executive Officer and Executive Director, said: "We have been building up our liquidity methodically over the last two years with a net cash position as we were mindful of a possible downturn. However, we did not anticipate the speed and ferocity of the worst global financial crisis since the Great Depression.
'We are happy to have had the opportunity to participate in the rights issues of our portfolio companies. In general, our portfolio companies are well-positioned to ride out the crisis, especially in terms of their liquidity and financing needs. At the same time, we continue to invest steadily and selectively.'
Bonuses deferred
In 2008, Temasek had a negative Wealth Added of $6 billion. This resulted in the clawback of long-term deferred bonuses in staff compensation last year.
A negative Wealth Added means that the portfolio value did not reach the required hurdle, which is determined by a risk adjusted cost of capital charge and other adjustments.
The negative Wealth Added of $68 billion for the most recent financial year ended 31 March 2009 will translate to additional clawbacks of the remaining deferred staff bonuses this year.
Outlook
Temasek remains optimistic on Asia and other growth regions for the longer term.
'Looking ahead, we believe the worst of the global meltdown risks are behind us. While there are some 'green shoots of growth', some structural risks still remain for the medium term,' said Ms Ho.
She continued: "For Temasek, our Value-at-Risk, or VaR, is estimated at about 20% of our portfolio over 12 months. This is similar to the % VaR last March. This means an 84% probability, a reasonably high probability, that our portfolio value will rise, or may fall at most by 20%, over the 12 months to March next year.
"Conversely, it means a 16% probability that our portfolio value may fall more than 20%, over 12 months."
__________________
Who are ya? where did you come from? where are you going? 1 googol = 1.0 × 10^100
Is it the work of goodyear or mdm ho? Who was helm for the past few months?
I must say that's irrelevant.
Consider that they were facing a situation where they had lost billions of taxpayers' money. Now they have very impressively turned it around and translated these formerly lost taxpayers' money into substantial private profits. This requires both sound long-term decisions made years ago, and good management and snap decisions through the current crisis, which means both Goodyear and Ho should take credit for this (though they most assuredly will in monetary terms).
__________________
[i]"We are all at a table together, deciding which rules to adopt, free from any vague constraints, half-remembered myths, anonymous patriarchal texts and murky concepts of nature. If I propose something you do not like, tell me why it is not practical, or harms somebody, or is counter to some other useful rule; but don't tell me it offends the universe."[/i] -Jonathan Wallace
The government can continue to pump more of our hard earned money into Temasek and let them claim that it is their work. Where's the evidence of their successful investments? Where did the money come from?
* Portfolio at $122 bln end-July; August in line with indexes
* Buys stakes in S.Korea's ENK and Brazil's San Antonio
* Still open to new investments in financials
"in line with indexes".. and not outperformed? I thoght they claimed that they had fared better than Warren Buffett?
So we pay good money to the Temasek management just for them to perform "in-line" with indexes--just like anyone who had done nothing at all and just leave his portforlio to drift along with indexes (such that when the indexes move up, his portforlio also up, when indexes move down, his portfolio also down)?
Didn't Minister George Yeo (Bloggers are not transparent because they are anonymous and hence no accountability) and SM Goh Chok Tong (Ask Eric Low to check Hougang Town Council books) say as long there is no transparency, there will be NO accountability ?
Didn't Minister Lim Hwee Hua mention Temasek Holdings does not need transparency and hence where is the accountability ?
Transparency? Does it serve purpose? – Lim Hwee Hua
Given PAP's theory, since there is no accountability and no transparency from Temasek Holdings, how to ensure any charts, reports and statements from Temasek Holdings are true especially when it is favourable statements and good political statements about themselves ?
This time they release to MSM and foreign news as it is favourable news.
Furthermore, the MSM are told to follow instructions from government and GLCs to dish out good news everyday.This time they release to MSM and foreign news as it is favourable news.
Often, the unfavourable news about government and GLCs are initiated by foreign news and release into Singapore public and the MSM have no choice then due to internet but to copy and paste the same unfavourable news into MSM but with alteration.
Please remember our government and GLCs have a reputation for self-praise, self- congratulate and spin good news about themselves and blaming everyone else for 50 years.
Believe at your own risk.
Last edited by The_Republic : 19-09-2009 at 12:59 PM.
Just read the advert on recruitment of new CEO for TH. Here it goes:
Work Scope
Easy - Just amass an obscene amount of money from the sale of privatised state owned utilities to overseas companies, and use these money as seed capital for expansion and self-rewarding with millions. Ignore the fact that these utilities were built up with the sweat and money of our forefathers, have been privatised with govt funds and bought over by TH at practically zero cost, and thus money from such sales should rightfully be returned to the public.
Experience
None required - You just basically ride along with the economic wave. When the market is bullish, you will be credited with good leadership and be rewarded with more millions. When the market is bearish, blame it on the US economy and you will get away scot free with loosing tens of billions.
Qualifications
None required as well - And if you have a spouse who is a prime ministar and a father-in-law who is an old fart who refuses to die, then we will have you on board without having to go thru any interview at all. We will also gladly ignore your past track record of having lost multi millions from failed leadership and management.
Last edited by hardi_boy : 22-09-2009 at 01:10 PM.
There is no proof until proven. Please read other sources, then come to the conclusion. Never rely on local sources.
both the figures for the losses and the gains are given by the same source i.e. TH. if you believed the figures about the losses, then there's no basis for challenging the veracity of the source.
Last edited by anfielder : 22-09-2009 at 06:02 AM.
both the figures for the losses and the gains are given by the same source i.e. TH. if you believed the figures about the losses, then there's no basis for challenging the veracity of the source.
Im waiting for reuters and bloomberg to tell me things TH diam diam on. A lot of the bad news, like mistimed selling of assets were revealed by those instead of the official statements.......
I must say that's irrelevant.
Consider that they were facing a situation where they had lost billions of taxpayers' money. Now they have very impressively turned it around and translated these formerly lost taxpayers' money into substantial private profits. This requires both sound long-term decisions made years ago, and good management and snap decisions through the current crisis, which means both Goodyear and Ho should take credit for this (though they most assuredly will in monetary terms).
Don't quite agree on this. During the last 3 months the average indexes has went up around 30 - 50%. One don't really need to be a genius to make money from late Feb onwards as it was only 1 way until late Aug. And the markets are still going up, although with some resistent, which is traditional in Sep.
An impassionate plea to help a little girl. A poor little girl fighting for her life. She needs your support. Please click on her ads. this isn't a scam. Her Docs' letter is here. Have you click already?
Only a fool will forget the loss of billions. That loss is not just a normal market index loss due to market conditions, but a drama of long term short term blunders and flip flop statements.
With current market conditions, it's expected to track upwards. Remember they are "trying"(still an unknown) to make back the losses, while others are making gains and cashing in profits.
Heard of the Bernie Madoff Ponzi scam ? ( A man that had the backing of a part of the federal government, namely SEC, and could shrug off numerous professional complaints/warnings/lawsuits for more than a decade before the global financial meltdown finally flush him out ).
Channels
TECH GUIDES
1 googol = 1.0 × 10^100 
