I find it rather strange when I heard from TV that the govt compared Temasek performance with MSCI performance. True enough in today's papers, someone wrote in & asked for the relevancy of comparing Temasek performance with the MSCI performance.
First of all, MSCI is Morgan Stanley Composite Index, just like any other indices e.g. Straits Times Index, whereby the basket of stocks or component stocks used are different in MSCI case.
Temasek performance is tied to its investment. When its investment goes wrong, the overall portfolio will be reduced which is understandable, but to benchmarked to an index performance, I find it meaningless & irrelevant.
Alternatively they should do a comparison with other sovereign funds to gauge their performance. I believe this comparison will be fairer & more relevant.
First of all, MSCI is Morgan Stanley Composite Index, just like any other indices e.g. Straits Times Index, whereby the basket of stocks or component stocks used are different in MSCI case.
Temasek performance is tied to its investment. When its investment goes wrong, the overall portfolio will be reduced which is understandable, but to benchmarked to an index performance, I find it meaningless & irrelevant.
Alternatively they should do a comparison with other sovereign funds to gauge their performance. I believe this comparison will be fairer & more relevant.