Ho Ching has once again saved Temasek and Singaporeans' hard earned money. After Cheap created a $60 billion hole inTemasek in March, Mdm Ho has since recovered those losses after her return to Temasek. Singapore owes Mdm Ho a great deal of gratitude. I have full confidence in Mdm Ho to lead Temasek to greater heights.
At a news conference on Thursday, Temasek said the markets have stabilised, helping its portfolio increase 32 per cent since end-March to S$172 billion as at end-July.
Temasek's portfolio value falls 30% on-year to S$130b as of March 2009By May Wong, Channel NewsAsia | Posted: 17 September 2009 1551 hrs
SINGAPORE: The market turmoil last year and earlier this year has hit the returns of Singapore investment company Temasek Holdings.
According to its latest annual report – the Temasek Review – its one-year total shareholder return (TSR) by market value came in at -30 per cent as of March 31, compared with +7 per cent the year before.
Its portfolio value for the financial year to March 2009 fell 30 per cent on-year to S$130 billion. This means the portfolio has shrunk back to levels seen three years ago when its value was worth S$129 billion.
It is also the first time that its TSR has been negative and its portfolio value has dropped since the Temasek Review was published in 2004.
However, Temasek said its TSR since inception in 1974 by both shareholder funds and market value held steady at 16 per cent.
Despite the global credit crunch, Temasek said it remained cautiously active in the market, making S$9 billion of investments and S$16 billion in divestments during the year.
As for the group's net profit, Temasek raked in S$6 billion as of end-March this year, down two-thirds compared to last year. The company said the decline reflected the generally weaker operating performances of its portfolio companies.
At a news conference on Thursday, Temasek said the markets have stabilised, helping its portfolio increase 32 per cent since end-March to S$172 billion as at end-July.
Ho Ching, executive director and CEO, Temasek Holdings, said: "There'll be some medium-term risk, but I think we have the full flexibility to do what we need to do and we have full flexibility today to think of what we should do for the long term, rather than be constrained. So as far as we're concerned, we're in a fairly comfortable position.
"When you're in a net cash position, you have full flexibility to do anything. We're not leveraged. So as an example, when market fell last year, we were not in a position where we were forced to sell just to top up margins and things like that, compared to investors who may have leveraged themselves."
On the lessons learned from the financial crisis, Ms Ho admitted that Temasek made the wrong assumption that large economies were well managed, with low regulatory risks.
"We pay a lot of attention to what is being said and done in the US, even when we don't have large exposures to the US because that can affect the rest of us," said Ms Ho.
Looking ahead, Temasek said the worst of the meltdown risks is over, but it expects risks of inflation and asset misallocations in the medium term. It added that structural issues still need to be resolved due to continued deleveraging.
However, the sovereign wealth fund remains optimistic about Asia's potential for the long term and has maintained an "overweight" call on the region. As of end-March this year, its exposure to Asian markets stood at 43 per cent, while its Singapore exposure was 31 per cent.
The Organisation for Economic Co-operation and Development (OECD) economies accounted for just over 20 per cent of its portfolio and new markets like Latin America and Russia made up four per cent.
Temasek had said in the past that it aims to keep 40 per cent of its investments in Asia, 30 per cent in Singapore, 20 per cent in the OCED countries and 10 per cent in Latin America, Eastern Europe, the Middle East and Africa.
- CNA/so
At a news conference on Thursday, Temasek said the markets have stabilised, helping its portfolio increase 32 per cent since end-March to S$172 billion as at end-July.
Temasek's portfolio value falls 30% on-year to S$130b as of March 2009By May Wong, Channel NewsAsia | Posted: 17 September 2009 1551 hrs
SINGAPORE: The market turmoil last year and earlier this year has hit the returns of Singapore investment company Temasek Holdings.
According to its latest annual report – the Temasek Review – its one-year total shareholder return (TSR) by market value came in at -30 per cent as of March 31, compared with +7 per cent the year before.
Its portfolio value for the financial year to March 2009 fell 30 per cent on-year to S$130 billion. This means the portfolio has shrunk back to levels seen three years ago when its value was worth S$129 billion.
It is also the first time that its TSR has been negative and its portfolio value has dropped since the Temasek Review was published in 2004.
However, Temasek said its TSR since inception in 1974 by both shareholder funds and market value held steady at 16 per cent.
Despite the global credit crunch, Temasek said it remained cautiously active in the market, making S$9 billion of investments and S$16 billion in divestments during the year.
As for the group's net profit, Temasek raked in S$6 billion as of end-March this year, down two-thirds compared to last year. The company said the decline reflected the generally weaker operating performances of its portfolio companies.
At a news conference on Thursday, Temasek said the markets have stabilised, helping its portfolio increase 32 per cent since end-March to S$172 billion as at end-July.
Ho Ching, executive director and CEO, Temasek Holdings, said: "There'll be some medium-term risk, but I think we have the full flexibility to do what we need to do and we have full flexibility today to think of what we should do for the long term, rather than be constrained. So as far as we're concerned, we're in a fairly comfortable position.
"When you're in a net cash position, you have full flexibility to do anything. We're not leveraged. So as an example, when market fell last year, we were not in a position where we were forced to sell just to top up margins and things like that, compared to investors who may have leveraged themselves."
On the lessons learned from the financial crisis, Ms Ho admitted that Temasek made the wrong assumption that large economies were well managed, with low regulatory risks.
"We pay a lot of attention to what is being said and done in the US, even when we don't have large exposures to the US because that can affect the rest of us," said Ms Ho.
Looking ahead, Temasek said the worst of the meltdown risks is over, but it expects risks of inflation and asset misallocations in the medium term. It added that structural issues still need to be resolved due to continued deleveraging.
However, the sovereign wealth fund remains optimistic about Asia's potential for the long term and has maintained an "overweight" call on the region. As of end-March this year, its exposure to Asian markets stood at 43 per cent, while its Singapore exposure was 31 per cent.
The Organisation for Economic Co-operation and Development (OECD) economies accounted for just over 20 per cent of its portfolio and new markets like Latin America and Russia made up four per cent.
Temasek had said in the past that it aims to keep 40 per cent of its investments in Asia, 30 per cent in Singapore, 20 per cent in the OCED countries and 10 per cent in Latin America, Eastern Europe, the Middle East and Africa.
- CNA/so
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