<TABLE id=msgUN cellSpacing=3 cellPadding=0 width="100%" border=0><TBODY><TR><TD id=msgUNsubj vAlign=top>
Coffeeshop Chit Chat - A THIRD FUNDC ???</TD><TD id=msgunetc noWrap align=right>
Subscribe </TD></TR></TBODY></TABLE><TABLE class=msgtable cellSpacing=0 cellPadding=0 width="96%"><TBODY><TR><TD class=msg vAlign=top><TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR class=msghead><TD class=msgbfr1 width="1%"> </TD><TD><TABLE cellSpacing=0 cellPadding=0 border=0><TBODY><TR class=msghead><TD class=msgF noWrap align=right width="1%">From: </TD><TD class=msgFname noWrap width="68%">singabagus <NOBR></NOBR> </TD><TD class=msgDate noWrap align=right width="30%">5:36 am </TD></TR><TR class=msghead><TD class=msgT noWrap align=right width="1%" height=20>To: </TD><TD class=msgTname noWrap width="68%">ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right> (1 of 3) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft width="1%" rowSpan=4> </TD><TD class=wintiny noWrap align=right>6873.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>Mrs Lim said this is not the first major downturn both soveriegn wealth funds had gone through. She noted that both Temasek and GIC had bounced back from significant reductions in asset values in previous slumps, including the 1997 Asian Financial Crisis.
And despite the downturns, the two investment companies had seen credible investment returns over the years.
Mrs Lim said: "In spite of these market gyrations, including the current downturn, for the 20-year period to late 2008, Temasek had achieved annualised returns of about 13 per cent. GIC, which has a diversified and more conservative portfolio, also had credible returns over the 20-year period.
"As at March 2008, the 20-year average return was 5.8 per cent in nominal Singapore dollar terms. The figure for March 2009 would have fallen as a result of the decline in 2008, but would not be sharply down."
Mrs Lim also reiterated that Temasek must continue to operate commercially without government interference. But she does not rule out the possibility of a third investment fund set up to buy into local companies hit by the current downturn. Mrs Lim was addressing suggestions for Temasek to play a role in rescuing local firms that have been affected by the economic crisis.
She said: "If Temasek is asked to undertake a national agenda, it will in fact validate some of the concerns over sovereign wealth funds having political objectives, and may ultimately impede Temasek's ability to participate in investments internationally."
- CNA/yt
</TD></TR><TR><TD> </TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>
And despite the downturns, the two investment companies had seen credible investment returns over the years.
Mrs Lim said: "In spite of these market gyrations, including the current downturn, for the 20-year period to late 2008, Temasek had achieved annualised returns of about 13 per cent. GIC, which has a diversified and more conservative portfolio, also had credible returns over the 20-year period.
"As at March 2008, the 20-year average return was 5.8 per cent in nominal Singapore dollar terms. The figure for March 2009 would have fallen as a result of the decline in 2008, but would not be sharply down."
Mrs Lim also reiterated that Temasek must continue to operate commercially without government interference. But she does not rule out the possibility of a third investment fund set up to buy into local companies hit by the current downturn. Mrs Lim was addressing suggestions for Temasek to play a role in rescuing local firms that have been affected by the economic crisis.
She said: "If Temasek is asked to undertake a national agenda, it will in fact validate some of the concerns over sovereign wealth funds having political objectives, and may ultimately impede Temasek's ability to participate in investments internationally."
- CNA/yt
</TD></TR><TR><TD> </TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>
