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Temasek Holdings goes back into black with S$7 billion gain and 1.6% return

Temasek Holdings reported a S$7 billion net portfolio increase, achieving a 1.6% return. Despite this gain, critics highlight the state investor’s long-term returns as mediocre, with a 10-year return of 6% and a 20-year return of 7%.

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Temasek Holdings has reported a S$7 billion (US$5.2 billion) increase in its net portfolio, buoyed by investment returns from the US and India that helped to offset underperformance in China. The state investor’s net portfolio was valued at S$389 billion as of 31 March 2024, up from S$382 billion the previous year, according to its latest annual review released on Tuesday.

While Temasek posted a positive annual shareholder return of 1.6 percent, this modest gain follows last year’s dismal negative 5.07 percent, the worst since 2016. This raises questions about the consistency and resilience of Temasek’s long-term investment strategy. The 10-year total shareholder return remained steady at 6 percent, and the 20-year return dipped to 7 percent from 9 percent, a decline attributed to the exclusion of the post-SARS recovery year of 2004.

Speaking at a press conference on Temasek Review 2024, Ms Connie Chan, head of financial services at Temasek International, said, “As our investments are primarily in equities, we’re not immune to year-to-year market volatility.”

Temasek, one of three entities responsible for investing Singapore’s reserves, plays a crucial role in funding the government’s annual budget. Under the Net Investment Returns Contribution framework, the government can spend up to half of the long-term expected investment returns generated by Temasek, along with those from the sovereign wealth fund GIC and the Monetary Authority of Singapore.

In an effort to align more closely with industry peers, Temasek refined its methodology for calculating its mark-to-market net portfolio value. This new approach, which uses market multiples of comparable public companies and other assessment methods for unlisted assets, values its mark-to-market portfolio at S$420 billion, up from S$411 billion the previous year.

Despite a net divestment of S$7 billion for the year ending 31 March, Temasek maintained a “cautious but steady” investment pace. The state investor invested S$26 billion but divested S$33 billion, including a significant S$10 billion from the repayment of bonds from Singapore Airlines and the redemption of preferential shares by Pavilion Energy.

Temasek’s investment strategy has been guided by four structural trends since 2016: digitisation, sustainable living, the future of consumption, and longer lifespans. These trends now constitute 39 percent of Temasek’s portfolio, up from 13 percent in 2016. Investments were made in sectors such as technology, financial services, sustainability, consumer, and healthcare.

Geographically, the Americas made up 22 percent of Temasek’s portfolio, second only to Singapore at 27 percent. Investments in China decreased from 22 percent to 19 percent of the portfolio, reflecting ongoing structural challenges despite the government’s pro-growth stance. Temasek is focusing on businesses serving the domestic market in China, such as biotech, import substitution, and the electric vehicle value chain.

“We’ve also been stepping up our investments in India, as we see more opportunities in consumer healthcare and financial services,” said Ms Chan, indicating a strategic pivot towards emerging markets with high growth potential.

However, the performance of Temasek has not escaped criticism.

Retired banker Chris Kuan commented on his Facebook, “I try to be even-handed about this. But no matter how you view it, Temasek’s performance is between mediocre and ho-hum, the latter meaning nothing to shout about and for quite some time now. Down 5.07% last year, up 1.5% this year. Over 10 years just 6%, over 20 years 7%. Pedestrian for an all equity portfolio with a very large, in fact majority, unlisted (or private) assets and a sprinkling of high-risk high-return VCs. To be real, if these are the returns generated, so be it. Just don’t praise Temasek like some godsend to the world of asset management or praise the key people like they are masters of the universe.”

For context, Norway’s sovereign wealth fund, the world’s largest, reported a record profit of $213 billion in 2023, driven by strong returns on equity investments, particularly in tech stocks. The fund achieved a 21.3 percent return on its equity investments, highlighting a stark contrast with Temasek’s more modest performance​.

Temasek’s diversified and forward-looking investment approach continues to build a resilient portfolio, but skepticism remains about whether it can deliver sustainable long-term returns amidst global economic uncertainties.

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PUFF the Magic DRAGeeON at work!!!??

Cooking the BOOKs?????

All the EXPENSIVE USELESS BUGs parasiting there,looking after themselves in GROUP think & then contributing NOTHING. ALL the CLBii fellows

Say already the Singtel Telco, google must close shop. Using service to play political game. No???

Father elite Group set up finish then Mother elite group then their sons and daughters. Not self serving then what?!? Nepotism, Capitalism all serving themselves!

Dun need to have a second White Group and give each other a pass again. You Mediacork and Oppo ain’t white just like PAP using a flimsy Lie.

Another point to add is the compensation given out due to this so-called turnaround.

From a negative 5.07% last year to a positive 1.6% this year for shareholder return, the team at TH would be lauded for this “fantastic” turnaround in performance.

The great unknown is what would have been the reward given out.

Unlike the Norway sovereign fund, I guess we will never know where TH is concerned

TH ‘s exposure to China have strung more than S$10,000,000,000/-from S$84 billions in financial year 2023 to S$73 billions in year 2024.It will be interesting to know how many billions of the above mentioned sum would constitute actual write off, given the extremely bad economic situation confronting CCP. Nevertheless,seen from the little information that were disclosed TH has again failed to deliver.Some heads have to roll. Of

This 7Bil profits, does that include the 3bil seized from the Fujian Gang???🤣😅😂
Still not much to boast about…in this richest & most expensive red dot.

If I am the investor with annual shareholder return of 1.6 percent I be very concern. Even if I were to put my money in a fixed deposit, I will also be getting a round 3 percent return annually.

The engineering-background empress said arrogantly “We can afford to be contrarian.”
I guess, coz (she thinks) it’s her own $$$$$!

Norwegian Welath Fiund Management’s humility, humbleness, down to earth esp their Forte Mission, to manage their people’s money, Owibg to them a sea of accountability – in SUCH a Stark CONTRAST of arrogant, ill-mannered, conceited TH people. There’s NOT A SPECK of haughtiness exude from these Norwegian People nor ONE CAN detect any air of misguided pride. The world is NOT BLIND and NOT DUMB. Childplay, that the world can appraise the VAST GULF of Operational Results ACHIEVED by Norway and the wannabe Temasek. How’s Ho Ching to hide her BLOODY THICK SKIN will certainly AMAZE any ETHICS, MORAL watching… Read more »

Watch people take away power and money but do nothing is not the right way. Watch those who are stupid run your government and still vote them in will cause more misery. It is an unjust world with rich enjoying and poor working hard and still suffer. Change the bad governing culture. Vote PAP out. Take back your power now.

Last edited 6 days ago by Petrus Romanus

So government become so rich again and people so poor. Little help only while most of 100 billion budget spend some places other than on poor. PAP mps enjoying luxury life, live big Bungalow and enjoy million dollar salary but people suffering inflation, squeeze in expensive HDB flats and other flat, paying house loan with small salary. It will be the same again, the same culture with rich and powerful enjoy while poor suffer when poor working hard, if voters vote PAP in again. It is an unjust world without economic justice. Act now. Take back your power. Vote PAP… Read more »

Last edited 6 days ago by Petrus Romanus

How much renumeration do these “mediocre” people receive?

“Non-mediocre” salaries for “mediocre” people? Wait, I thought high salaries attracted the best “talent”?

For some perspective. In 20-years, Gold went up by 568% and Silver by 393% (I am not implying that they should have bought precious metals and sat on it).

Last edited 6 days ago by Blankslate

The NORWEGIAN Chief Funder ever said before, very clearly, in NO UNCERTAIN words, NO. MINCING, VERY STRONG WORDS:

“They Manage the Country’s Money, the People’s Money”.

Has TH emphasize the same sentiments as the Norwegian’s in strong unequivocal statements?

An entirely transparent fund and it’s full management stats in Norway made $213billion in 2023, … and you don’t hear them bragging about or broadcasting it !!! Pride and joy of a proper sovereign wealth fund. Whilst in TH, it made S$7billion, … and you get their reports, strategies, long term approaches and shit !!! Embarrassingly pathetic indeed, … for a purported sovereign wealth fund !!! Furthermore, … any TH losses, big or small, .. one only gets to read about it from foreign press cum articles or CK himself. Operating in complete synchronisation with this regime and all of… Read more »

They are very good to make a super-detailed comparison analysis to justify their million$ salary. So why don’t they show us a detailed analysis with the world’s top (say) 10 SWFs that 6-7% return is the median? Show us the comparative data rather than a kaki-gong-kaki-song analysis.

can we have more chicken wings? tsk tsk tsk ….

Is this gross performance, nett?

More accurate is the RETURN of a Dollar invested with QUALITATIVE returns, like a reader mentioned of Norwegian Sovereign Fun’s (punt) performances.

Similarly Singaporeans fooled, more foreigners cheap inputs growth more – of course this PAP Administration is so bloody proud to boast when PRODUCTIVITY is WHAT really MATTERS.

A client of mine is using AI to make his investments. He claims to be getting a return of 10% to 12%. LW should look into this possibility as 900 over employees producing lesser returns means they can and should be replaced by AI. How much of TH’s portfolio belongs to the CPF? Maybe our President or PM can jump in with an answer.

Errr, is this consider good, mediocre, bad or even Jinx under the international standard they like to boast about?

If the NIRC keeps on falling over the years going forward due to incompetent management, doesn’t this indicates Singaporeans will need to be taxed more by the Pappy Gov in coming years to cover for this shortfall in expenditures?

Only way out is to vote out these mediocre Pappy bunch (faking as highly paid rare talent) to be sustainable for Singapore in the long run.

VTO. VTO.

“The fund (Norway’s) achieved a 21.3 percent return on its equity investments, highlighting a stark contrast with Temasek’s more modest performance​”

Comment: modest performance? Please, it really is a pathetic showing by Temasek in comparison.

I guess we will NEVER know how the people at Temasek are paid.

But knowing how Pek Siok Lan the General Counsel of Temasek International could afford to lose S$5.5 mil to a fraudster, we do get a sense of how generously Temasek rewards its staff.

Two things to note, inflation and any cash injection by MAS or not.

1) 1.6% return meaning after less off core inflation at 4.2% = -2.6%?

2) Did MAS inject any fund to Temasek in 2023 to the time the 1.6% was calculated? If have, that mean -2.6% is even worse off.

Last edited 6 days ago by Singapore Fooled Again n Again

PAP is the SCOURGE of SG. Various serious DEBACLES PAP entrenched engaged in of late, tells CLEARLY, FORCEFULLY IMCOMPETENCES of PAP – it’s NO Longer a Party for Progress, of Unity, a Principled Politics Actor, a BEACON of Hope, of Light, a Achiever of Good Life for the Average Singapore, a prime example which one reads regularly Singaporeans DESPAIR over job searches, MEANINGFUL employment, MOST of which the PAP Administration Invited Foreign Trash to COMPETE and STEAL legally under their RETARDED, BENT Meritocracy. Keppel Bribery Corruption, Iswaran’s Money/Gifts Acceptance Galore, Bungalows PRESENT to CHOSEN PAP Monsters et al. SG won’t… Read more »

My fixed deposits are getting better returns than Temasek and yet their paying themselves multi-millions. The fund managers should be returning their salaries for overwhelmingly underperforming.

Issue here is this :
What is the crumbs TH return to CPF holders?

Fat hopes – not even crumbs to think of

6 percent. Glowing? Remarkable? Excellent? Goodness me?

Whats the world’s national average bourse returns – the countries where TH is in?

20%? 10, or More like 35%!

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