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In the eyes of many financial experts in the world, Ho Ching is a much better investor than Warren Buffet...
Temasek Holdings portfolio value hits record S$186b
By Desmond Wong | Posted: 08 July 2010 1415 hrs
SINGAPORE : The value of Temasek Holdings'portfolio climbed 43 per cent to a new record high of S$186 billion in the 12 months to March this year, beating the previous high of S$185 billion set in 2008.
Temasek is seeing better investment returns with a rising stock market.
According to its latest annual report released on Thursday, Temasek closed the financial year with a comfortable net cash position.
The market value of Temasek's portfolio rebounded to a new financial year-end high of S$186 billion as at March, an increase of S$56 billion from a year earlier.
Total shareholder return by market value grew 42 per cent on-year during the period. This reverses a negative 30 per cent return in 2009.
Since its inception in 1974, Temasek said its total shareholder return by market value has grown a compounded 17 per cent annually.
But the financial crisis took its toll in the short term, as the investment company's net profit for the year fell 26 per cent.
It's net profit for the 12 months to March 2010 fell to S$4.6 billion, as revenues slid 4 per cent to S$76.7 billion.
Temasek said this was due to some of its blue chip holdings being hit by the downturn.
Leong Wai Leng, chief financial officer, Temasek Holdings, said: "On the whole, our portfolio companies have performed well, but some of them are more severely impacted. For example, NOL, and SIA - they're publicly-listed companies and you have seen that in their results."
Temasek said it made S$10 billion in investments over the year, and S$6 billion in divestments, with most of its recent investments in the past few months being in the resources and energy sectors.
Temasek's annual report also stated that its investment focus remains firmly in Asia, which now accounts for about 46 per cent of its fund allocation.
Singapore assets take up some 32 per cent, while OECD economies account for 20 per cent, with other countries - mainly in Latin America - taking up 2 per cent of the allocation.
Temasek said it plans to increase its exposure in Asia and remains overweight on the region in the near future. But it sees risks in the near term for both developed and developing economies.
Looking ahead, Temasek believes the worst of the economic downturn is over but said structural imbalances remain in the global economy with the European debt crisis having the potential to slow recovery.
It also identifies deleveraging by governments and consumers, tightening regulations, the threat of trade protectionism and credit availability as risks ahead.
Simon Israel, executive director, Temasek Holdings, said: ""Deleveraging will continue. Policy risks will be higher and the regulatory environment tougher. Inflation rises are muted in the near term except perhaps in the developing economies."
However, Temasek said that China and India will be the anchors for future regional growth. It added that it plans to stay liquid and continue to invest and divest at a steady pace.
The firm is also pushing ahead with plans to grow SeaTown Holdings, a wholly-owned subsidiary with over S$4 billion in capital commitment.
SeaTown aims to invest in a broader range of asset classes and geographies, away from Temasek's own equities and Asian focus.
But Temasek said it will take at least three to five years for SeaTown to establish itself before sophisticated co-investors are brought in.
On the question of succession, Temasek executive director, Simon Israel, said: "There is no active immediate search for a CEO. Ho Ching is CEO and remains CEO."
Last Feburary, former BHP Billiton CEO Charles Goodyear was appointed to succeed Ms Ho, but left the firm after a 7-month transition process due to strategic differences.
- CNA/sf/al
Temasek Holdings portfolio value hits record S$186b
By Desmond Wong | Posted: 08 July 2010 1415 hrs
SINGAPORE : The value of Temasek Holdings'portfolio climbed 43 per cent to a new record high of S$186 billion in the 12 months to March this year, beating the previous high of S$185 billion set in 2008.
Temasek is seeing better investment returns with a rising stock market.
According to its latest annual report released on Thursday, Temasek closed the financial year with a comfortable net cash position.
The market value of Temasek's portfolio rebounded to a new financial year-end high of S$186 billion as at March, an increase of S$56 billion from a year earlier.
Total shareholder return by market value grew 42 per cent on-year during the period. This reverses a negative 30 per cent return in 2009.
Since its inception in 1974, Temasek said its total shareholder return by market value has grown a compounded 17 per cent annually.
But the financial crisis took its toll in the short term, as the investment company's net profit for the year fell 26 per cent.
It's net profit for the 12 months to March 2010 fell to S$4.6 billion, as revenues slid 4 per cent to S$76.7 billion.
Temasek said this was due to some of its blue chip holdings being hit by the downturn.
Leong Wai Leng, chief financial officer, Temasek Holdings, said: "On the whole, our portfolio companies have performed well, but some of them are more severely impacted. For example, NOL, and SIA - they're publicly-listed companies and you have seen that in their results."
Temasek said it made S$10 billion in investments over the year, and S$6 billion in divestments, with most of its recent investments in the past few months being in the resources and energy sectors.
Temasek's annual report also stated that its investment focus remains firmly in Asia, which now accounts for about 46 per cent of its fund allocation.
Singapore assets take up some 32 per cent, while OECD economies account for 20 per cent, with other countries - mainly in Latin America - taking up 2 per cent of the allocation.
Temasek said it plans to increase its exposure in Asia and remains overweight on the region in the near future. But it sees risks in the near term for both developed and developing economies.
Looking ahead, Temasek believes the worst of the economic downturn is over but said structural imbalances remain in the global economy with the European debt crisis having the potential to slow recovery.
It also identifies deleveraging by governments and consumers, tightening regulations, the threat of trade protectionism and credit availability as risks ahead.
Simon Israel, executive director, Temasek Holdings, said: ""Deleveraging will continue. Policy risks will be higher and the regulatory environment tougher. Inflation rises are muted in the near term except perhaps in the developing economies."
However, Temasek said that China and India will be the anchors for future regional growth. It added that it plans to stay liquid and continue to invest and divest at a steady pace.
The firm is also pushing ahead with plans to grow SeaTown Holdings, a wholly-owned subsidiary with over S$4 billion in capital commitment.
SeaTown aims to invest in a broader range of asset classes and geographies, away from Temasek's own equities and Asian focus.
But Temasek said it will take at least three to five years for SeaTown to establish itself before sophisticated co-investors are brought in.
On the question of succession, Temasek executive director, Simon Israel, said: "There is no active immediate search for a CEO. Ho Ching is CEO and remains CEO."
Last Feburary, former BHP Billiton CEO Charles Goodyear was appointed to succeed Ms Ho, but left the firm after a 7-month transition process due to strategic differences.
- CNA/sf/al
:p
