[GPGT] Y some edmwers keep saying Temasek holdings buy high sell low when they maintain 8% average annual return for the past 20 years?

[sky3838]

Lol @ those s&p comparison comments.

Obviously don't understand objective of a sovereign fund and risk management.

Such a big sovereign fund you put 100% in s&p

- risk diversification (asset class, country, industry)
- liquidity risk management
- volatility risk (this is extreme important for sovereign funds)

S&P can up a lot in a year, can drop a lot within a few months also. If you manage sovereign funds you know how impt it is to have low volatility and high liquidity. In the event of covid year we can see how our govts require to draw from reserve to fund or support the economy.

With high volatility portfolios, you'll end up selling down at extreme bad price only most of the time since high volatility market is usually when economy not doing good, and that's when govt needs the money to boost its economy.

With high liquidity it allows draw down of funds easier, especially whereby redemption is so common with cpf withdrawals.

People who think S&P 500 just small fish la, don't handle institute or big money that's why talk is cheap. You can't just compare s&p against sovereign fund port, they have diff volatility. Need to adjust back to risk return.

Might as well compare to crypto assets, even higher total return but lack of liquidity, security and extremely high volatility compare to other asset classes.

 

[yildun]

Does not look impressive to me too. Doing great before the financial crisis. In the last decade, some the annual returns are quite dismal at 1% and 2%. Will uou put your money with this type of fundmanager?

Edmwer wisdom.

 

[d5dude]

Lol @ those s&p comparison comments.

Obviously don't understand objective of a sovereign fund and risk management.

Such a big sovereign fund you put 100% in s&p

- risk diversification (asset class, country, industry)
- liquidity risk management
- volatility risk (this is extreme important for sovereign funds)

S&P can up a lot in a year, can drop a lot within a few months also. If you manage sovereign funds you know how impt it is to have low volatility and high liquidity. In the event of covid year we can see how our govts require to draw from reserve to fund or support the economy.

With high volatility portfolios, you'll end up selling down at extreme bad price only most of the time since high volatility market is usually when economy not doing good, and that's when govt needs the money to boost its economy.

With high liquidity it allows draw down of funds easier, especially whereby redemption is so common with cpf withdrawals.

People who think S&P 500 just small fish la, don't handle institute or big money that's why talk is cheap. You can't just compare s&p against sovereign fund port, they have diff volatility. Need to adjust back to risk return.

Might as well compare to crypto assets, even higher total return but lack of liquidity, security and extremely high volatility compare to other asset classes.

Yes S&P500 can sometimes go down 50%, but then again TH lost 30% in 2008/2009 too, max intra year drawdown during that period was probably over 40% so its not exactly a low volatility portfolio.

Such is the nature of stocks, even Buffett cannot escape large temporary DDs.

 

[rathalos]

Temasek do 8% give sinkies 2.4% in OA, 4% in SA.. meanwhile Malaysia EPF can do 5-6%...

 

[dpsk3000]

Lol @ those s&p comparison comments.

Obviously don't understand objective of a sovereign fund and risk management.

Such a big sovereign fund you put 100% in s&p

- risk diversification (asset class, country, industry)
- liquidity risk management
- volatility risk (this is extreme important for sovereign funds)

S&P can up a lot in a year, can drop a lot within a few months also. If you manage sovereign funds you know how impt it is to have low volatility and high liquidity. In the event of covid year we can see how our govts require to draw from reserve to fund or support the economy.

With high volatility portfolios, you'll end up selling down at extreme bad price only most of the time since high volatility market is usually when economy not doing good, and that's when govt needs the money to boost its economy.

With high liquidity it allows draw down of funds easier, especially whereby redemption is so common with cpf withdrawals.

People who think S&P 500 just small fish la, don't handle institute or big money that's why talk is cheap. You can't just compare s&p against sovereign fund port, they have diff volatility. Need to adjust back to risk return.

Might as well compare to crypto assets, even higher total return but lack of liquidity, security and extremely high volatility compare to other asset classes.

FINALLY SOMEONE who knows the stuff!!! EDMW degenerates are famous for 2 things only - DCA and BUY-DA-DIP SP500.

 

[ricohflex]

Hope Temasek does not announce one day like Bernard Madoff.
That they don't really have the money they claim to have.
Then SG will collapse. RM$1 = SGD$3.

 

[sky3838]

Yes S&P500 can sometimes go down 50%, but then again TH lost 30% in 2008/2009 too, max intra year drawdown during that period was probably over 40% so its not exactly a low volatility portfolio.

Such is the nature of stocks, even Buffett cannot escape large temporary DDs.

Never confirm on your numbers whether accurate, but nevertheless based off it still it's on a very bad year, still lower volatility than s&p 500. So still better off if they need to sell down.

Those s&p people don't think about black swan events, what if US market suddenly crash for whatsoever reason or like Malaysia CLOB? All the money gone to almost 0 in a day. No asset and country diversification.

 

[Johnpierpontmorgan]

Seigniorage is the difference between the value of currency/money and the cost of producing it

 

[iceblendedchoc]

https://www.temasekreview.com.sg/overview/performance-overview.html
I am only more concern why CPF is only 2.5%. Not even enough to beat inflation. Then minimum sum has to be raised again.

it would have been 80% if not for the consistent buy high sell low

 

[tech90]

The gov sold a lot of assets at under market value to TH over the years e.g CAG, hard to not make any money under such circumstances.

Most of their public equity investments have been really bad, China and to a certain extent Singapore, has been terrible.

Agree, and alot of their shareholding are legacy that they had no choice but to have (ie PSA, singtel, keppel, capitaland). All those of course huat when Singapore was developing.

If you strip out the legacy shareholdings that they couldn't control I wonder what would be the returns for their actively managed investments.

 

[Misuta]

Cpf monies are invested by GIC lah

 

[d5dude]

Never confirm on your numbers whether accurate, but nevertheless based off it still it's on a very bad year, still lower volatility than s&p 500. So still better off if they need to sell down.

Those s&p people don't think about black swan events, what if US market suddenly crash for whatsoever reason or like Malaysia CLOB? All the money gone to almost 0 in a day. No asset and country diversification.

Nobody knows since TH only report once a year, but it should be quite close to MSCI world index intra year DD since TH has global investments and STI was down over 60% at one point during the GFC.

Yes its a bad idea to put all eggs in one basket, diversification is important whether you are an SWF or retail investor.

 

[worcer]

Temask got 8% due to investment into Singapore govt affiliated companies...

One good example is smrt. Govt pay for trains and they just take money....

 

[groo-the-wanderer]

Did anybody realise more than 40% of their portfolio in unlisted assets. In such case how do u value your holdings, at point of purchase, latest round of fund raising ?

 

[aspenco]

Inb4 bbfa comment that they can also declare 18 or 28% cos no one truly knows the real performance.

 

[c95zm8]

For those that say sovereign wealth fund cannot be a index investor, pls refer to Norway sovereign oil fund

 

[elevate]

Skem .

 

[Shion]

they r doing fine overall

 

[worcer]

Hope Temasek does not announce one day like Bernard Madoff.
That they don't really have the money they claim to have.
Then SG will collapse. RM$1 = SGD$3.

Unless Singapore economy crash and govt bankrupt, temask will nvr have no money.

Look at the portfolio of temask and u know those companies that make money mostly in Singapore...

 

[zyklon86]

Are you a daft sinkie?

You know they could have just put money in S&P 500, did nothing and gotten better returns?