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http://www.channelnewsasia.com/stories/singaporebusinessnews/view/408020/1/.html
Temasek's investment portfolio down 31% to S$127 billion as of 30 Nov 08
SINGAPORE: Temasek Holdings' portfolio of investments fell 31 per cent to S$127 billion as of 30 November last year, according to latest data revealed in Parliament on Tuesday.
[COLOR="_______"]This was down S$58 billion dollars from S$185 billion six months earlier in light of the global financial crisis. [/COLOR]
Senior Minister of State for Finance and Transport Lim Hwee Hwa said: "This is less than the corresponding declines in the MSCI Singapore Index of 44 per cent and the MSCI Asia ex-Japan of 45 per cent both in Singapore dollar terms over the same period."
Despite this, the Singapore government said both Temasek as well as the Government of Singapore Investment Corp (GIC) have the ability and resources to weather the ups and downs over multiple economic and market cycles.
Mrs Lim said this is not the first major downturn both soveriegn wealth funds had gone through.
Mrs Lim 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 this, 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 added that Temasek and GIC are long-term investors, and as such they do not have to divest their investments in market downturns.
Temasek's investment portfolio down 31% to S$127 billion as of 30 Nov 08
SINGAPORE: Temasek Holdings' portfolio of investments fell 31 per cent to S$127 billion as of 30 November last year, according to latest data revealed in Parliament on Tuesday.
[COLOR="_______"]This was down S$58 billion dollars from S$185 billion six months earlier in light of the global financial crisis. [/COLOR]
Senior Minister of State for Finance and Transport Lim Hwee Hwa said: "This is less than the corresponding declines in the MSCI Singapore Index of 44 per cent and the MSCI Asia ex-Japan of 45 per cent both in Singapore dollar terms over the same period."
Despite this, the Singapore government said both Temasek as well as the Government of Singapore Investment Corp (GIC) have the ability and resources to weather the ups and downs over multiple economic and market cycles.
Mrs Lim said this is not the first major downturn both soveriegn wealth funds had gone through.
Mrs Lim 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 this, 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 added that Temasek and GIC are long-term investors, and as such they do not have to divest their investments in market downturns.
