Temasek, GIC, MAS

[zuoom]

Tharman says not govt's role to comment on GIC, Temasek investments
By Wong Siew Ying, Channel NewsAsia | Posted: 21 January 2008 1812 hrs


SINGAPORE: It is not the government's role to comment on or second-guess whether it was timely for the Government of Singapore Investment Corporation (GIC) and Temasek Holdings to make their recent investments, Finance Minister Tharman Shanmugaratnam said.

Responding to a question in Parliament on how GIC and Temasek Holdings had injected funds into distressed banks like UBS and Merrill Lynch, the minister said, "They make these decisions for commercial reasons based on calculations free of any influence from the government."

"The government is assured that both GIC and Temasek have thoroughly assessed the risk in each of these investments and have made hard-headed commercial decisions after careful assessment of the risk and the prospect for returns over the long term," he stressed.

The MP for Ang Mo Kio GRC, Inderjit Singh, asked, "In July last year, Temasek invested a few billion dollars into Barclays Bank... From what I understand, these values have now gone down to half of the investment.

"Is the minister not worried that if GIC and Temasek continue with this kind of multi-billion (dollar) investments all in one sector - in the banks, this could quickly wipe out a significant portion of our reserves?"

The minister replied, "We have to leave it to them - timing, decision as to whether to invest, how to protect yourself in each investment, which GIC and Temasek have indeed done in each of these large deals...

"We do have an understanding with both GIC and Temasek as to the government's overall risk tolerance, so this is not a situation where we are completely hands-off." - CNA/ac

source : http://www.channelnewsasia.com/stories/singaporelocalnews/view/323925/1/.html

read via : http://forums.hardwarezone.com.sg/showthread.php?t=1846470
*solidghost

you cannot question PAP Hitler

PAP hilter can question you

Minister is right that govt shouldnt interfere with what GIC and Temasek do.
Last thing we need is some politicians taking decisions which an investment banker should take. Its also wise for him not to talk too much about these funds as markets can react violently to any loose comment.

Only downside I see is that Soverign Wealth Funds like GIC arent active in the board of companies. So they dont have much say in the functioning of the company. But I guess that is necessary to avoid any misunderstandings which can occur when a government fund is investing in some high profile foreign company.

Good returns will always come with associated risks. If GIC/Temasek have to keep their returns ahead of inflation, they have to take some risks. Now unless the whole financial industry goes up in smoke, long term returns for Merrill, Citi, Barclays, UBS should be decent.

No one is being asked to resign over debacles with losses of billions of dollars, one after another. Ministry of Finance is accountable to the citizens of Singapore, Temasek is accountable to the Ministry of Finance. Where's the accountability?

E.g
Merrill Lynch & Co. CEO Stan O'Neal
Citigroup Inc. Chairman Chief Executive Charles Prince
UBS CEO Peter Wuffli
Bear Stearns (BSC) CEO James Cayn

Firing of high level executives as well as "resigning".

What's next? Mr T's catchphrase "I pity the fool!" might become very true.... Temasek can still work well with another "leader", since it doesn't matter right? It's all about the money, and there's more where that came from.

I really really hope you are just being sarcastic, and not ignorant.

Quote:
GIC Board of Directors

1. CHAIRMAN
Mr Lee Kuan Yew
Minister Mentor

2. DEPUTY CHAIRMAN
Mr Lee Hsien Loong
Prime Minister
Minister for Finance

3. DEPUTY CHAIRMAN
& EXECUTIVE DIRECTOR
Dr Tony Tan Keng Yam
Former Deputy Prime Minister &
Coordinating Minister for
Security & Defence


DIRECTORS
4. Mr Lim Hng Kiang
Minister for Trade & Industry

5. Mr Tharman
Shanmugaratnam
Minister for Education &
Second Minister for Finance

6. Mr Raymond Lim
Minister for Transport &
Second Minister for Foreign Affairs

7. Dr Richard Hu Tsu Tau
Former Minister for Finance
Chairman, GIC Real Estate

8. Mr Ang Kong Hua
Executive Director
NatSteel Ltd

GIC = Govt

since they sit on the board

The irony's so absurd sometimes its satirical

Quote:
Originally Posted by Soulhacker
I really really hope you are just being sarcastic, and not ignorant.
Being board of directors does not actually mean that they are involved in the running though..

Quote:
Originally Posted by Inix
Being board of directors does not actually mean that they are involved in the running though..
So what's their role and responsibility? Sit there and collect director's fee on top of their astronomical pay scale? They're involved, beginner investor 101.

Quote:
Originally Posted by Rogue
So what's their role and responsibility? Sit there and collect director's fee on top of their astronomical pay scale? They're involved, beginner investor 101.
That depends on the corporate charter to see how much power the board of director actually have. Most of the time, the BOD is a silent governing body that serves only to read books, have corporate meetings that takes place at expensive locations etc, and yes, get paid director fees.

They will probably need to move in, or to say anything, when there is a in-effective performance year on year.

Quote:
Originally Posted by Mianhaeyo
Nothing to do with the fact that the Ministry of Finance owns GIC and Temasek and some MPs hold directorships in those companies?
GIC website clarifies on these points

http://www.gic.com.sg/aboutus_check.htm
Quote:
Corporate Governance

GIC was formed on 22 May 1981 as a private company under the Companies’ Act and is wholly owned by the Government of Singapore. GIC does not own the funds it manages, but manages them on behalf of its clients; the Government of Singapore and the Monetary Authority of Singapore. The Ministry of Finance represents the Government in dealing with GIC. The clients set the investment objectives for GIC and monitor its performance. GIC receives a fee to finance its operating expenditure. The GIC management team runs the day-to-day operations of the company and is given the autonomy to decide where and how to invest, recruit and remunerate. In turn, the management reports to its own Board of Directors which provides overall guidance and direction. GIC is accountable to its clients.
Quote:
The President is entitled, at his request, to any information concerning GIC. In addition, GIC is regularly audited by the Auditor-General.
So the board will set acceptable level of risks and expected returns from GIC investments. How and where the investments are made is left in the hand of bankers (GIC management) who know what they are doing. There are also external audits to keep an eye on their account books. If the board..or rather the politicians in the board start suggesting where/how GIC should invest, then things will be bad indeed.

Overall board of directors are not always impacted by the bad performances of companies. Its the CEO who has to take the fall because he is the one who guides and monitors the day to day operations of a company. In cases like Citibank and UBS, board fired the CEO and elected a new one. They themselves were safe even after the astronomical losses those banks ran up. Something which a lot of their investors didnt like....

Its not so much an issue of job scope but of responsibilities. We can argue about the BOD all year round and still won't get a definite answer. Some BOD micromanages, some are very lax and do nothing between Board meetings.

This is OUR Government we are talking about the Government has a responsibility to ensure that our tax and CPF money is used wisely.

No one is asking the Government to step in and micromanage GIC and TH. If it is their money, fine, they can do what they like and are answerable only to the legal system and to their lenders. But we are talking about the national coffers here, and they have to be accounted for.

==============

erm, if it's not the govt role to comment/question on the GICs... then who will???

keyword : accountability.

where does it start? where does it end?

[Vorsprung durch Technik]

time to exercise your voting rights in another 3-4 years time.

[zuoom]

http://www.straitstimes.com/Breaking%2BNews/Money/Story/STIStory_300845.html



Nov 11, 2008
Hit by childcare chain's fall
Temasek suffers heavy loss; too-rapid growth and boss' spending cited in collapse of firm

THE crash of an Australian childcare chain run by a high-spending former milkman has thrown thousands of families into turmoil and left investors like Temasek Holdings in a black hole.

ABC Learning controlled 20 per cent of the country's childcare industry with 1,075 centres employing 16,000 staff who looked after 120,000 children. It also owns centres in New Zealand.

The firm's rapid expansion was underpinned by huge levels of debt but questionable management and higher interest rates thanks to the credit crunch took their toll and the firm went to the wall last week owing banks A$762 million (S$788 million).

Temasek will be one of the biggest casualties. It took a 12 per cent stake worth about A$400 million last year, buying in when the shares were at A$7.30 only to see the stock plummet to 54 Australian cents before they were suspended.

The firm had a market value of as much as A$3.8 billion last year.

The casualty list will also extend to the many working families who face the prospect of having nowhere to send their children next year.

The government has agreed to give ABC a limited lifeline of A$22 million to keep the facilities afloat until the end of the year. But with receivers claiming that 40 per cent of the centres are unprofitable, many are unlikely to find a buyer and will almost certainly be forced to close.

ABC Learning was one of the largest childcare centres in the world but its rapid growth and aggressive borrowing, coupled with a big-spending boss who enjoyed the fruits of his success, contributed to its downfall.

Founder Eddy Groves, a former milkman with a strong entrepreneurial flair, opened his first kindergarten in Brisbane in 1988.

By 2000 he had more than 40 centres around Australia and profits were so buoyant he decided to float the company on the Australian stock exchange.

The secret of his success was that 44 per cent of the company's revenue came from government childcare allowances, money that by-passed parents and was paid directly into ABC coffers.

With such a guaranteed source of income, for a time Mr Groves could do no wrong.

Investors such as Australia's Commonwealth Bank, Morgan Stanley Private Equity and Temasek were impressed by the company's gilt-edged potential and bought up heavily.

The first hint of trouble came in February when ABC declared a trading halt after a massive slump in its share price.

With its extensive interests in the United States and the prospect of a downturn in the US economy, there were fears that the company might struggle to repay its debt.

As the once high-flying shares tumbled some ABC board members and Mr Groves were understood to have received calls on margin loans.

Suddenly the founder and chief executive's multi-million-dollar fortune was no more and he left the company several weeks ago, leaving behind a corporate empire in ruins.

Soon colourful tales of his high-spending lifestyle began to emerge in the Australian media.

There were reports of his extended stays in five-star resorts with his mistress Viryan Collins-Rubie, dinners at the best restaurants and his and her taste in expensive imported cars.

There were lavish presents of jewellery for a favoured few, shopping trips to some of the most exclusive boutiques and stays at Las Vegas casinos.

But life was catching up with Mr Groves.

Apart from his business problems, his wife Le Neve was none too happy with his romantic attachments.

Last week it emerged that she had ordered her lawyers to claim A$44 million as part of a divorce settlement.

Mr Groves once said that working 19 hours a day delivering milk had given him incredible discipline.

'You don't have the time to be silly and spend the money doing ridiculous things,' he said.

Sadly he did not heed his own advice in later life.

roger@aimsmedia.com

via : http://forums.vr-zone.com/showthread.php?t=350589

[Cobra]

Someone is not doing his job to audit Temasek and GIC on how they invest with tax payers' money. I thought we 'elected' him for this key purpose and not just attend charity shows ..... 

Now tell me who should take responsibilty ... or another case of telling us we should be objective and not 'fire' talent because of some poor execution on the ground level.  Fire the ground people instead.

[zuoom]

all's fine when the economy is doing ok. ie: making money.

when the poor showing comes, ie: losing money. that's when the truth comes in.

and the truth probably will hurt big time.

[Vorsprung durch Technik]

all bottoms down to a word 'greed'; mother of all success

[zuoom]

[SIZE="5"]Temasek's Aussie investment goes under[/SIZE]

http://news.asiaone.com/News/The%2BBusiness%2BTimes/Story/A1Story20081107-99096.html

Siow Li Sen
Fri, Nov 07, 2008
The Business Times

(SINGAPORE) A Temasek Holdings investment Down Under has gone under - a victim not just of the credit crunch but also dubious management.

Childcare operator ABC Learning Centres said yesterday that it has gone into receivership and appointed voluntary administrators to help clear a mountain of debt.

Reports are emerging that founder Eddy Groves, who was ousted in September, ran ABC's operations in such an 'opaque' way that potential rescuers find the business model hard to decipher.

ABC has also been attacked over related-party transactions. Mr Groves' former brother-in-law had a A$170 million (S$174 million) maintenance and renovation contract for ABC's childcare centres, and the service company lists its principal place of business as Mr Groves' Brisbane apartment.

Reports yesterday said the directors of ABC - the largest childcare centre operator in Australia and second-largest in the US - has appointed Ferrier Hodgson Group voluntary administrator.

Temasek Holdings is ABC's second-largest shareholder. In May last year, the Singapore investment company spent A$401.5 million or A$7.30 a share on a 12 per cent stake. Then early this year - as the stock sank - Temasek increased its stake to 14.7 per cent. This has since been pared to 12.68 per cent, after ABC completed an A$82 million equity placement in June.

Temasek Holdings spokeswoman Myrna Thomas said yesterday: 'We note the serious development announced by ABC Learning Centres. We are monitoring the situation closely and will explore all options available to us.'

Lazard Asset Management is ABC's largest shareholder with 12.93 per cent, followed by Temasek, then Morgan Stanley.

ABC said the company's banking syndicate has appointed advisory firm McGrathNicol as receiver, AP reported.

ABC chairman David Ryan said the company's board and management are 'disappointed' to be in this position but that quality childcare will continue. The company has almost 1,200 childcare centres in Australia and New Zealand, and more than 1,000 in the US, as well as more than two dozen nurseries in Britain.

ABC's debt on June 30, 2007 was A$2.2 billion, up substantially from A$111 million at the end of fiscal 2004.

The company, which gets a large proportion of its revenue from Australian government childcare subsidies, has delayed filing annual results for its latest financial year.

The government is in talks with creditors about ABC's future and has set up a task force to consider contingency plans to protect families that use the childcare service.

Potential buyers have been put off by the company's opaque management, after going through its books.

The Australian Financial Review newspaper said on Wednesday that instead of developing its own centres, ABC paid a company called 123 Global, run by former ABC executive Don Jones, to buy land, build centres and run them until occupancy rates were up, before selling them at a multiple of earnings.

But ABC could claw back liquidated damages if occupancy rates fell short, booking these as profits. In 2006, Mr Jones was running 123 Careers, which outsourced ABC Learning Centre staff. He paid a fee to ABC for a 10-year contract, which ABC front-loaded with payments over three years.

ABC is also said to have bought a toy distributor for A$5 million, loaded it with contracts to supply ABC Learning Centres, and then sold it for A$46 million.

Trading in ABC's shares has been suspended since Aug 21 as the company worked to resolve its debts. The shares last traded at 54 Australian cents.

[SIZE="5"]Blow for Temasek’s Aussie investment[/SIZE]
[SIZE="4"]Firm could lose millions it pumped into ABC Learning[/SIZE]

Friday • November 7, 2008

Christie Loh
deputy business editor

http://www.todayonline.com/articles/285776print.asp

SHORTLY after raising its stake in an Australian education firm, Temasek Holdings is now watching its investment totter as ABC Learning Centres has suddenly gone into receivership.

The Brisbane-based company said yesterday that McGrath-Nicol has been appointed receiver while administrator Ferrier Hodgson will look into how to salvage the firm, which has failed to repay about A$850 million ($849 million) of bank loans.

The news came just a day after ABC Learning — the world’s largest childcare operator — assured Australian parents and investors that it remained in talks with “key stakeholders to secure the future of the company’s operations”.

When contacted, Temasek’s managing director for corporate affairs Myrna Thomas said: “We note the serious development announced by ABC Learning Centres. We are monitoring the situation closely and will explore all options available to us.”

In February, Temasek raised its stake to about 14.7 per cent from an initial 12.3 per cent bought in May last year for A$402 million or A$7.30 per share. The Singapore investment firm had justified pumping in millions of dollars more, amid a sharp fall in ABC Learning’s half-year earnings, by saying its decision was based on “commercial considerations”.

At the time, other shareholders including American fund manager Lazard had also bumped up their stakes. Then in August, the stock was suspended at the last traded price of A$0.54.

Now, investors may be left with nothing, according to the Australian media.

The Sydney Morning Herald said ABC Learning’s 34,000 shareholders “will not receive anything, as only secured creditors will likely claw back some of their funds”.

Wise Owl analyst Sven Restel told :The Daily Telegraph :in Australia: “Shareholders are likely to lose all their money because ... the administrators will take the assets and sell them, and the secure credits will have first call.”


[SIZE="5"]Nanny state: Australia bails out child care provider[/SIZE]

http://www.earthtimes.org/articles/show/240521,nanny-state-australia-bails-out-child-care-provider.html

Posted : Fri, 07 Nov 2008 08:12:16 GMT
Author : DPA

Sydney - Australia's failed ABC Learning Centres Ltd on Friday got a big cash injection from the government to keep its 1,100 child care outlets open until they can be sold to rival operators. ABC, with a quarter of the market, provides 120,000 places and employs 16,000 people.

"The 22 million Australian dollars (15 million US dollars) represents the possible cost of supporting the continued operation of these centres for two months," Education Minister Julia Gillard said. "It will allow parents to have the certainty that child care will be provided as usual in that period and will also provide stability for employees at ABC."

Administrators were called in Thursday after banks, who are owed 1.3 billion Australian dollars, called in their loans.

ABC, founded by South African-born Eddy Groves, was once the world's biggest provider of child care with operations in the United States and Europe as well as Australia and New Zealand. It took on so much debt in its expansion programme that it was never expected to survive the credit crisis.

Groves, who last month severed his links with ABC, has been forced by margin calls to sell all his holdings. Some of the shares he unloaded were picked up by Singaporean sovereign wealth fund Temasek Holdings, now the biggest investor in the crippled company with a stake of 14.6 per cent.

His estranged wife, Le Neve Groves, has also been obliged to sell all her shares and is suing her husband for millions of dollars in compensation. Earlier in the year the pair had 8 per cent of the Brisbane-based company.

via : http://forums.vr-zone.com/showthread.php?t=351866

[zuoom]

Temasek’s Merrill losses could exceed $2bn

By Saskia Scholtes and Greg Farrell in New York

Published: January 7 2009 23:13 | Last updated: January 7 2009 23:13

Temasek, the Singapore state investment fund, is sitting on significant paper losses related to its stake in Merrill Lynch, the investment bank acquired by Bank of America last week.

The state agency’s unrealised losses could amount to more than $2bn, excluding any hedges, according to a Financial Times analysis based on publicly available filings.

The loss is emblematic of the damage the financial crisis has wrought on sovereign wealth fund investments in the banking sector and helps explain why funds have been reluctant to commit further capital to banks.

Some 40 per cent of Temasek’s portfolio is in the financial sector, and it has suffered paper losses on other investments, including Barclays, Bank of China and China Construction Bank.

Temasek on Monday disclosed it had converted its 13.7 per cent stake in Merrill into BofA shares following the acquisition.

On December 31, the last day of trading before the deal closed, Temasek’s remaining stake in Merrill, for which it paid an average of $23 a share, had dropped to $12.10.

After ploughing $5bn into Merrill between December 2007 and February 2008, and with a further $900m commitment last summer, Temasek owns 189m BofA shares, according to Monday’s disclosure. At Wednesday’s opening price, they were worth $2.7bn.

However, Temasek appears to have sold more than 30m shares of Merrill stock in the first and third quarters of 2008, according to regulatory filings. Even if Temasek sold at the lowest possible prices in these periods, the sales would have generated a modest profit to defray some of Temasek’s unrealised loss.

Temasek declined to comment.

It could have been worse. Temasek’s initial investment allowed it to buy more than 104m shares at $48 per share.

But after Merrill was forced to raise further capital in July, the terms of Temasek’s original investment were reset. This effectively bought Temasek 151m new shares in Merrill for just under $6 per share, bringing the average price paid per Merrill share to a little over $23.

Temasek’s investment suffered again in September, as Merrill shares plunged on concerns about the US banking sector.

But any losses seemed to vanish when BofA agreed to buy Merrill in an all-stock deal which valued the latter at $29 a share. BofA’s shares have since slumped, however.

Additional reporting by John Burton in Singapore

Copyright The Financial Times Limited 2009

via : http://www.singsupplies.com/showthread.php?t=14357

[zuoom]

Seriously, even stat boards were also involved. :s27:

Business Times - 18 Nov 2008
IDA, 3 stat boards suffer 14% paper loss in credit-linked notes
By ANGELA TAN

Finance Minister Tharman Shanmugaratnam told Parliament on Tuesday that four statutory boards - the Civil Service College, Singapore Land Authority, Infocomm Development Authority and the Professional Engineers' Board - have invested in credit-linked notes, but not those related to bankrupt US investment bank Lehman Brothers.

He says the notes suffered a 14 per cent paper loss this year, not very different from the recent global market performance.

'None of the underlying entities and assets referenced to by these credit-linked notes have defaulted,' he said.

'The four statutory boards are monitoring the situation closely, and will take the necessary steps to minimize any losses in these investments.'

The exposure of the four boards to such notes make up only 0.05 per cent of the total investment portfolios of all of Singapore's statutory boards.

One of the statutory boards also has financial products linked to credit default swaps, but this makes up only 0.1 per cent of its portfolio.

Mr Tharman also says the government has advised all the statutory boards to maintain sound principles of diversification and risk management when investing.

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.

http://forum.channelnewsasia.com/viewtopic.php?t=197746

via : http://forums.hardwarezone.com.sg/showthread.php?t=2167537

[tags] (o.o)y statutory boards

------------

this one sure was an quiet article... didn't notice this until lately when this "(o.o)y" user caught my attention. he/she post great news. good source of info.

[zuoom]

Last night, Barclays banks fell nearly 25% to just 98 pence per share.

18 months ago in July 2007, Temasek bought at 7.20 pounds per share.

Don't know whether they have sold earlier or not because there is no news of them selling and Temasek's website shows they were still holding the shares as at last financial year-end in March 2008.

From 7.20 pounds to 98 pence, it's about 86% loss. 

The initial investment was 975 million pounds.  Now becomes 98/720 x 975 mil = 132.7 million pounds only.  A loss of about 842 million pounds. 

Then the Sterling (aka British Pound) fell from about 3.05 in July 2007 to just 2.2 now against the SGD.

So the actual loss in S$ terms could be :

Original investment : S$ 3 billion
Price now = 132.7 x 2.2 = S$ 292 million
=====
Loss =  S$ 2.708 billion or about 90%  (4% higher than in pounds because pounds has depreciated against S$.)

If have not sold, may be don't have to worry because MM Lee already said our national investments are for the long term and we shouldn't be too worried about their short-term returns.

This is of course in addition to the potential loss of around S$5.5 billion now on the 189 million Bank of America shares (last US$7.18 = stake about US$1.4 billion = S$2 billion) converted from Temasek's stake in Merrill Lynch (cost about US$5 billion = about S$7.5 billion).

In any case, this is nothing when compared to the potential loss (not converted to shares yet) by GIC's investments in UBS (more than S$10 billion loss because the preferences shares have to be converted to common shares at about CHF 52 before end of 2009 and it's trading at CHF 13.33 now) and Citigroup (will be hit if Citigroup goes under because GIC is only holding perpetual convertible preference shares with a strike price of about US$31-$34 and they can choose not to convert.) .

http://finance.google.com/finance?q=LON:BARC



http://sg.finance.yahoo.com/q/bc?s=GBPSGD=X&t=2y


http://www.temasekholdings.com.sg/media_centre_news_releases_230707.htm

Temasek Holdings Invests in Barclays PLC

23 July 2007, Singapore

Temasek Holdings ("Temasek") confirmed today that it is investing £975 million (approximately S$3 billion) in Barclays PLC ("Barclays") via its newly issued shares at a price of £7.20 per share, representing 2.1 per cent of Barclays' existing issued share capital. Temasek will subscribe to a further £1.5 billion (S$4.5 billion) in Barclays' shares at a price of £7.40 per share, conditional on the completion of the Barclays-ABN Amro merger. £0.5 billion of this subscription amount will be made available to Barclays' existing shareholders through a clawback at the same price. If the clawback is not exercised, Temasek will own 2.9 per cent of the combined entity.

Temasek will also receive a warrant to subscribe for approximately 61 million Barclays ordinary shares with an exercise price of £7.80 per share. The warrant is exercisable within two years from the completion of the conditional subscription.

Senior Managing Director of Temasek, Frank Tang said, "We are pleased to have this opportunity to invest in Barclays. We look forward to supporting them in their strategy to create opportunities for a higher level of sustainable growth. This investment fits well with our interest for long-term exposure to strong players in the financial services sector."

Executive Director Simon Israel added: "Barclays is a very well-managed bank. We are very impressed with its board and management, specifically their strategy, track record and focus on value creation for shareholders. We believe the Barclays' board and management understand what it takes to make the Barclays-ABN Amro merger work and deliver value."

via : http://forums.hardwarezone.com.sg/showthread.php?t=2238818

[zuoom]

various reports are coming out ... (regarding all the various investment made by Temasek.)
it's not showing a good picture.

in fact, it's a very gloomy bleak picture.

is the government not going to comment/do something?
is it not the government role to safeguard the money of its people?

[Vorsprung durch Technik]

all seniors act like businessmen... asking for paycheck tagging along with private industry. waste our $$$

[zuoom]

SINGAPORE - Singapore's sovereign wealth funds, the Government of Singapore Investment Corp and Temasek Holdings, outperformed global equity markets in 2008, the city-state's finance minister said on Monday.

Their overall value has fallen by less than the decline in global equity markets, as they maintain diversified portfolios and had taken precautionary actions early in the crisis to reduce their exposures to the equity markets,' Tharman Shanmugaratnam said in a reply to a parliamentary question, referring to a 42 per cent fall in 2008 in the MSCI World equities index. -- REUTERS

via : http://forums.hardwarezone.com.sg/showthread.php?t=2241925

[tags] GIC, GSIC, Temasek

[zuoom]

SINGAPORE - Singapore's sovereign wealth funds, the Government of Singapore Investment Corp and Temasek Holdings, outperformed global equity markets in 2008, the city-state's finance minister said on Monday.

Their overall value has fallen by less than the decline in global equity markets, as they maintain diversified portfolios and had taken precautionary actions early in the crisis to reduce their exposures to the equity markets,' Tharman Shanmugaratnam said in a reply to a parliamentary question, referring to a 42 per cent fall in 2008 in the MSCI World equities index. -- REUTERS

via : http://forums.hardwarezone.com.sg/showthread.php?t=2241925

[tags] GIC, GSIC, Temasek

http://www.celicasg.org/index.php?topic=4660.0

[tags] interlink

[zuoom]

here's the complete article.

Jan 19, 2009
Losses less than markets'

THE Government of Singapore Investment Corp (GIC) and Temasek Holdings outperformed global equity markets in 2008, said Finance Minister Tharman Shanmugaratnam in Parliament on Monday.
'Their overall value has fallen by less than the decline in global equity markets, as they maintain diversified portfolios and had taken precautionary actions early in the crisis to reduce their exposures to the equity markets,' he said in a written reply to a query in Parliament from Non-Constituency MP Sylvia Lim.
Ms Lim, who is the opposition Worker's Party chairman, wanted to know the extent of losses - on paper or realised - suffered by GIC and Temasek Holdings arising from the financial meltdown.
Mr Shanmugaratnam said investments by GIC and Temasek had not been spared by the global financial crisis.
He said as at Dec 31, the MSCI World (Equities) had declined by 42 per cent in 2008, slightly worse than the 40 per cent decline as at end October.
The MSCI (Singapore) fell by 50 per cent over the year.
'Investments by GIC and Temasek have inevitably been affected, like those of other global investors,' he said.
'However, their overall value has fallen by less than the decline in global equity markets, as they maintain diversified portfolios and had taken precautionary actions early in the crisis to reduce their exposures to the equity markets.'
Added the minister: 'GIC and Temasek's strategies of investing on a diversified basis for the long term, and maintaining sound governance and risk management practices, enable them to ride through market cycles, including severe market declines such as in the current global crisis. 'These strategies also put them in a position to take advantage of any opportunities that may arise from the current downturn.'

via : http://www.singsupplies.com/showthread.php?t=15341