Temasek's Returns Disappointing!!!
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extracted from ST forum.
SINGAPORE'S Temasek Holdings has been very much in the news in recent weeks with the high-profile multi-billion-dollar purchase of Shin Corp and its offer for P&O.
While many of Temasek's deals are long term in nature, it is nonetheless disheartening to learn that for the last five years, its total shareholder return was a paltry one per cent a year, against 2.7 per cent for the Straits Times Index.
As a stakeholder in the country's hard-earned reserves, I find this most disappointing as its performance is way below that of many public companies here.
Surely, the rate of shareholder return must form part of the key performance indicators for Temasek's senior executives. The return on investment must at least match those achieved by the average public company.
Jeffrey Ho Loon Poh -
The general elections are coming. Use it to voice your displeasure.
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Hey, but didn't you say in another thread that the money that is managed by Temasek belongs to the government and NOT Singaporeans.Originally posted by shade343:The general elections are coming. Use it to voice your displeasure.
Why should you be worried about Temasek's pathetic returns then?
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See what is going on at Thailand now
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Everytime Temasek makes an overseas investment, you will find some analysts questioning why they are over paying for that investment.
At the rate they seem to just buy and buy without consideration for costs, it is no wonder the returns are not up to expectations. -
Since when was I worried?Originally posted by charlize:Hey, but didn't you say in another thread that the money that is managed by Temasek belongs to the government and NOT Singaporeans.
Why should you be worried about Temasek's pathetic returns then?
Temasek's money is not my money. Temasek Holdings substantial shareholder is the Ministry of Finance.
And the guy who writes the letter needs to reflect also. Can he confidently say his portfolio has consistently outperform the benchmark STI?
If the writer feels that he can do a better job, why not he send his resume to TH? -
They have appointed independent financial advisors to advise them.Originally posted by charlize:Everytime Temasek makes an overseas investment, you will find some analysts questioning why they are over paying for that investment.
At the rate they seem to just buy and buy without consideration for costs, it is no wonder the returns are not up to expectations. -
Can Temasek ever have any positive returns when almost every investment seems to be at prices that are excessive and beyond market price ?
From an Economist.com report dated 26 January 2006, it was stated that -
"Temasek is paying a fairly expensive 15 times prospective 2006 earnings for Shin Corp" .
In a Bloomberg.com report dated 25 January 2006, it was stated that -
"Shin Corp., established and controlled by the Thaksin family, owns Shin Satellite Pcl, Asia's third-biggest operator of commercial orbiters. Other assets include television station ITV Pcl, Internet service provider C.S. Loxinfo Pcl and budget airline Thai AirAsia Co.
Shin Corp.'s annual profit in 2004 fell for the first time since 2000. The company's net income in the third quarter of 2005 dropped 10 percent to 1.98 billion baht. Competition eroded the market share of Advanced Info, Shin Corp.'s primary asset, to 56 percent as of November from 58 percent a year earlier. "
Despite having a wide portfolio of different businesses, Shin Corp' annual profit continue to drop over two consecutive financial years in a market that is becoming competitive and eroding market share.
Has Temasek taken a big bite more then it can swallow ?
Shin Corp is owned as a PRIVATE ENTERPRISE before Thaksin was elected as the Thai PM, its success and size has been build by PRIVATE CAPITAL and ENTREPRENEURSHIP.
Temasek Holdings is owned by the Singapore Government and is a PUBLIC ENTERPRISE - disguised as a PRIVATE ENTITY - funded entirely from NATIONAL Annual Budget Surplus transferred from the Ministry of Finance. The Board of Directors of Temasek are all Political Appointees and its Management having a Civil Servant mentality.
In this exchange of funds to takeover Shin Corp, it will seem that the Private Enterprise will seem to have been "more shrewd" in the management of the successful outcome then any profitable long term benefit for the Public Enterprise. -
Yes the writer can be certain he can out perform temasek. The writer can produce a return equivalent to STI index by passive indexing of fund where the fund manager tries to mirror the index performance.Originally posted by shade343:Since when was I worried?
Temasek's money is not my money. Temasek Holdings substantial shareholder is the Ministry of Finance.
And the guy who writes the letter needs to reflect also. Can he confidently say his portfolio has consistently outperform the benchmark STI?
If the writer feels that he can do a better job, why not he send his resume to TH? -
1% per annum?
Even FDs, bonds, T notes can outperform this. -
And still they get 1% return per annum?Originally posted by shade343:They have appointed independent financial advisors to advise them.
What kind of independent financial advisors are they appointing? -
Scholars.Originally posted by charlize:And still they get 1% return per annum?
What kind of independent financial advisors are they appointing? -
For the P&O deal, they have appointed 3 advisors I think--DBS, Goldman Sachs and JP Morgan.Originally posted by charlize:And still they get 1% return per annum?
What kind of independent financial advisors are they appointing? These are established Financial companies. -
Dont worry...... 1% right.......dont worry.....maybe it's to pay for these expansions.....
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any 5% GST for temasek deals? I am not sure how GST comes to play, but i believe they must be prepared to deal with the taxman for all 5%GST due.
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GST stands for GOODS AND SERVICES TAX. Means taxes for consumables.Originally posted by AF2005:any 5% GST for temasek deals? I am not sure how GST comes to play, but i believe they must be prepared to deal with the taxman for all 5%GST due. -
Can't say I've known too many family businesses that pay any attention to their shareholders.
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We don't believe in get rich quick schemes.
What we have seen is long term stable growth.
It is also difficult to compare Temasek and commercial fund managers because both are very different in scope, protocol and activity. -
Lets see. What is 1% of 100 billion dollars in assets? Get the picture here?
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actually even 1% of highest $150billion is $1.5billion. Sharing the $1.5billion is damn a lot for multi-million individuals, and this can generate 1 500 millionaires.
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If you come to think of it, its only the writer writing into a public forum to express his displeasure over how Temasek Holdings is managing its funds, because after all his shares in the company are at stake.
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1% return is pathetic. if it was a private hedge fund with private investors, the investors will all be pulling out their money. so who is going to fire Ho Ching for achieving a 1%reutrn? The Prime Minister? there should be full transparency in GIC and Temasek. i just do not see where the check and balances come in when the Prime Minster is the Minister of Finance (MOF) and the only shareholder of Temasek is the MOF which is run by the PM's wife. The set up is a joke. How could we singaporeans buy into this whole set of family related appointments!
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Elections are coming.Originally posted by tohyi:1% return is pathetic. if it was a private hedge fund with private investors, the investors will all be pulling out their money. so who is going to fire Ho Ching for achieving a 1%reutrn? The Prime Minister? there should be full transparency in GIC and Temasek. i just do not see where the check and balances come in when the Prime Minster is the Minister of Finance (MOF) and the only shareholder of Temasek is the MOF which is run by the PM's wife. The set up is a joke. How could we singaporeans buy into this whole set of family related appointments!
You can try going to a PAP rally and asking the PAP candidate those tough questions when you have the chance. -
I got the picture. If Ho ching didnt make the mistake of buying micopolis, Temasek returns would have jumped 50%.Originally posted by shade343:Lets see. What is 1% of 100 billion dollars in assets? Get the picture here? -
I say again.
Even FDs can beat the 1% annual return.