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Temasek July portfolio up $42 billion from Mar2009
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dcang84
Veteran |
18-Sep-2009 23:37
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Dun jump the gun and stop flogging a dead horse! Who is comparing profits? Read carefully before commenting. If it's too challenging for you, stay out of discussion.
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risktaker
Supreme |
18-Sep-2009 21:23
Yells: "Sometimes you think you know, but in fact you dont" |
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i mean TMS = Average Funds
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risktaker
Supreme |
18-Sep-2009 21:22
Yells: "Sometimes you think you know, but in fact you dont" |
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hehe Niuyear is not a deep thinker la. pardon him. I know Funds that make less during the recession and make over 100% from march :) Fund is only average performance.
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Fishcake
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18-Sep-2009 14:47
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your comment just show how "green" your thoughts are. How many famous investors and funds made huge profits during this past 18mths? You may be hearing people talking about how much they made in these few months, but did you hear them telling you how much they lost before making profit? Be more objective please.
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jeremyow
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18-Sep-2009 12:48
Yells: "Passionate business investor" |
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This also goes to show that whether amateur, seasoned or knowledeable professional investors and institutions are never spared from any mistakes in their judgment of particular investments. We keep hearing stories of failed investments during the past financial crisis even by experienced professional investors, institutions and fund managers. For example, Warren Buffet made a wrong decision into buying shares of Conoco Philips during the height of oil prices one year back. Our local golden finger Mr Oei also got burned from some investments with Citigroup. Hedge funds also lost big time during this financial crisis. Depth of knowledge is good for making sound investments. However, failure to exercise one's knowledge in the proper manner due to complacency or emotions of fear and greed may also mean nothing advantageous to the investor or institution afterall.
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niuyear
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18-Sep-2009 12:24
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Temasek Likes Banks Even After Barclays, Bank of America Losses By Joyce Koh Sept. 18 (Bloomberg) -- Temasek Holdings Pte, the Singapore state investment company, said it’s still interested in investing in banks after losses on Bank of America Corp. and Barclays Plc triggered a record profit decline. Temasek will target financial institutions that benefit from economic growth or mergers and acquisitions, Ho Ching, chief executive officer of the $122 billion company, said yesterday. The worst of the global meltdown has passed, she said. “We look at some of these financial institutions as proxies for the economy as a whole,” Ho said. Temasek will also look at companies “where they may be doing a transformational deal, or where they themselves might be in transformation or at an inflexion point.” Ho, 56, is shifting Temasek’s focus to Asia and other emerging markets after the company reported a 66 percent drop in profit in the 12 months to March 31 on losses from the sale of its stakes in Bank of America and Barclays, part of S$16 billion ($11.3 billion) of divestments last fiscal year. As of March 31, 43 percent of the company’s investments were in Asia, 31 percent in Singapore, 22 percent in nations within the Organization for Economic Cooperation and Development, and 4 percent in Latin America. “We believe that as Asia progresses, it will continue to de-risk,” Ho said. “We are also adding exposures to other growth regions like Latin America. Our portfolio exposure today is almost equally balanced between the more developed economies and the newer growth regions.” Bank Stakes Temasek, wholly owned by Singapore’s Ministry of Finance, has been an active investor in banks since its inception in 1974 when it took over the government’s 28 percent stake in DBS Group Holdings Ltd., the region’s largest bank by assets. The investment company has shareholdings in eight major banks, including 19 percent of Standard Chartered Plc, the London-based bank that makes most of its earnings in emerging markets; 8 percent in ICICI Bank Ltd., India’s second-largest lender; and 68 percent of PT Bank Danamon Indonesia. “They’ve been hurt by their investments in U.S. banks,” said Brayan Lai, a credit analyst at Calyon in Hong Kong. “Their investments in Asian banks are doing well. The low funding and improving economic environment is very conducive for the banks.” While Temasek is comfortable in being overweight on Asia, there are risks of asset bubbles in the region, and the company “maintains full flexibility to shift our stance,” said Ho, who is also the wife of Singapore’s Prime Minister Lee Hsien Loong. There is investment potential in China and India in the long term, she added. Watching U.S. Temasek “did not anticipate the speed and ferocity” of last year’s global financial crisis, Ho said. “We were looking at the triggers in the wrong places and part of the reason is because we made the assumption that the developed economies, particularly the large economies, are well-managed and the regulatory risks are low, and hence we did not pay that much attention.” The company now pays “a lot” of attention to “what is being said and done in the U.S.,” even though it does not have a large exposure to the country, Ho said. Net income at Temasek declined to S$6.2 billion in the 12 months to March 31, down from a record S$18.2 billion a year earlier, Temasek said in its annual report yesterday. The value of investments, which plunged S$55 billion in the period, has since rebounded to S$172 billion as of July 31. Along with Kuwait Investment Authority and China Investment Corp., Temasek was among sovereign funds that helped struggling U.S. investment banks replenish capital. Clean Slate In the first three months of this year, Temasek sold the 3.8 percent stake in Bank of America that it received after the U.S. company bought Merrill Lynch & Co. at a loss that may have totaled $4.6 billion. It also sold its 2 percent stake in London-based Barclays. The company didn’t detail the size of those losses in its annual report. Shares of Bank of America have climbed 23 percent this year, after a 66 percent slide in 2008, while Barclays has more than doubled, following a 69 percent plunge last year. “The timing of the purchase and sale of Bank of America/Merrill Lynch and Barclays could have been better for Temasek, but by exiting from these positions prior to March, Temasek can start its new financial year with a clean slate,” said Melvyn Teo, an associate professor of finance at Singapore Management University who holds a Ph.D. in economics from Harvard University. To contact the reporter on this story: Joyce Koh in Singapore at jkoh38@bloomberg.net Last Updated: September 17, 2009 12:00 EDT |
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dcang84
Veteran |
18-Sep-2009 12:09
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It just goes on to show how 'green' they were when it comes to investing. The problem with them is the lack of foresight and risk analysis. They've made a strategic change focussing on Asia and emerging economies. While I do not doubt Asia will grow, the regulatory framework still lags those in the States and developed economies. Now how is this good for Temasek's investments?
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niuyear
Supreme |
18-Sep-2009 11:35
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Heng, they cld at least reap some rewards. You think Citigroup share could climb back as high as before? They have sold their citicard portfolio Big so what, also cant detect all the fraud before it happens.
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elysian
Member |
18-Sep-2009 11:08
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hmm so it grew from 130 billion to 172 billion in 3 months - very impressive growth of 42 billion dollars. But how much of the 42 billion is fresh money that was pumped in ? I think we have to look deeper before we applaud the perceived performance. |
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AK_Francis
Supreme |
18-Sep-2009 10:13
Yells: "Happy go lucky, cheers." |
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Heng heng, DIC didn't withdraw Citi Grp, then early ds yr, ard 0.80 USD only, now closed last nite at 4.42 USD, expected consolidation. A smarter Sam.
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niuyear
Supreme |
18-Sep-2009 10:03
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We shall await how GIC will perform. They had made huge losses too. | ||||
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niuyear
Supreme |
18-Sep-2009 09:56
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Good that Temasek has learned its lesson fast and slowly back on track. The losses is a good lesson to learn that - The biggest and most developed country like USA could fail regardless of its so call 'most-efficient system' and world's most well managed fund managers. In BBC's interview with Ho Ching, she said something like that : They had paid little attention to US movements thinking that it is most developed country and it should perform. (They just took thing for granted!!) But now, though Temasek has reduced its portfolio in US investment, but, they are now more alert and monitoring VERY closely the movements of US because this could also affect their investments elsewhere in the world.... |
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nickyng
Supreme |
18-Sep-2009 09:25
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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. 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." |
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