Temasek Hldg profit plunges 26%
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Singapore sovereign fund Temasek Hldg sees profits plunge
On Thursday 8 July 2010, 15:23 - AFP
Singapore's influential state-linked investment firm Temasek Holdings said Thursday its net profit in the year ended March had fallen 26 percent due to the lingering impact of the global crisis.
The firm's net profit of 4.6 billion Singaporean dollars (3.33 billion US) compared with 6.2 billion dollars the previous financial year, the sovereign wealth fund said.
The decline was due to "lower profit contributions from some of the portfolio companies which were impacted by the global financial crisis," it said as it released its annual report.
The city state's sovereign fund has been a major investor behind the phenomenal growth story that has characterised much of Asia in recent years.
But among the victims of the global crisis that struck in the third quarter of 2008 following the collapse of US bank Lehman Brothers were companies that Temasek had invested in.
Temasek had taken a stake in Wall Street icon Merrill Lynch but divested its interest when the US firm was bought by Bank of America. It also bought into British lender Barclays but later off-loaded that stake.
Temasek is estimated to have lost more than 5.4 billion US dollars from the sale of its holdings in the two banks, according to Dow Jones newswires.
On Thursday Temasek said the total value of its investments worldwide stood at a record 186 billion dollars as of March 31, up from 130 billion dollars the year before and reflecting a strong recovery from the recession.
The amount was higher than the pre-crisis value of its global portfolio, which was 185 billion dollars in March 2008.
Nearly 80 percent of Temasek's investments are in Asia, including Singapore, the company said.
Executive director Simon Israel said Temasek was likely to increase its exposure to Asia in the next 10 years.
But he added the company "will continue to maintain the full flexibility to shift our portfolio stance in response to major developments, trends or market opportunities".
During the last financial year, Temasek made new investments totalling 10 billion dollars, including stakes in a platinum producer in South Africa and a Canada-listed oil and gas firm. It made six billion dollars in divestments.
Earnings have declined since the record 18 billion-dollar net profit achieved in the financial year ended March 2008.
"We expect global growth to be slower in the medium term, with Asia maintaining its secular long term growth path," Temasek chief executive Ho Ching said in a statement. "Our focus on Asia will continue."
As of March 31, 2010, Temasek's underlying exposure to Singapore was 32 percent, while the rest of Asia excluding Japan stood at about 46 percent, the firm said.
Investments in the OECD -- the Paris-based group of industrialised nations -- and other economies totalled 22 percent.
Temasek chairman S. Dhanabalan cited protectionism in developed countries and asset bubbles in developing economies among the risks for the global economy.
"Protectionism may rear its head as developed markets struggle to cope with high unemployment, weak fiscal positions and mounting debt burdens," Dhanabalan said.
"On the other hand, developing markets risk asset bubbles, and loose lending may haunt their banking system down the road."
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Is this reported in shit times?
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Originally posted by Rock^Star:
Is this reported in shit times?
AFP.
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Jul 8, 2010 - Straits Times
Temasek's portfolio up 43%
THE market value of Temasek's portfolio rebounded to a new financial year-end high of S$186 billion - up by $56 billion from a year ago, with a total shareholder return of over 42 per cent.
The book value of its portfolio rose to S$150 billion for the year ended March 31, up from S$50 billion 10 years ago, underpinned by the secular growth of its group of companies and Temasek's own investment activities.
Mr Simon Israel, Executive Director of Temasek Holdings, briefing journalists at the release of the state investment firm's 2010 annual report, said: 'In terms of performance, we have done well.'
He said the rise in portfolio value matched that of two years ago, and the shareholder return of 42 per cent worked out to a return of 17 per cent compounded annually since Temasek's inception.
'This set of robust results is in part the result of the global recovery in the financial markets, and partly due to the investments we made during the crisis. They repressent a one year snapshot in our journey as a long-term investor,' said Mr Israel.
Going forward, Temasek will continue to focus on Asia, where it has been stepping up its exposure, said the annual report.
Since launching its Asia strategy in 2002, Temasek has invested actively in the region, with nearly 80 per cent of its underlying portfolio exposure in Asia this year. Mr Israel said the new investments made by Temasek over the past eight years have given the company 'a good return' of over 23 per cent,' boosting its exposure to Asia 'much faster than what we had expected.'
He said Temasek had managed to keep its cool and focused on what it needed to do as a long-term investor through the financial meltdown last year. 'We maintained a liquid posture, kept our powder dry, made sure the home base was secure, and invested and divested steadily, taking advantage of opportunities that dame along,' said Mr Israel.
'Some investments had not turned out as expected, while most other investments did well. Where we thought the risks were not acceptable, or when we had other better opportunities, we were ready to do what we thought was best for the long term, despite any short-term pain.'
Chairman of Temasek S. Dhanabalan said the group has 'been committed to create and deliver sustainable value as an active active investor and shareholder of successful enterprises.
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2 conflicting reports.
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AFP talks about profits, while ST sidetracks and talks about portfolio value.
Decreases in profits are due to lower returns in the portfolio, while increases in portfolio value could be due to capital injection to acquire more portfolio.
Kudos to ST for a fine piece of propaganda work.
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It's not propaganda
It's just looking from an alternate viewpoint using the same statistics
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Language problems
Main Entry: pro·pa·gan·daPronunciation: \ËŒprä-pÉ™-ˈgan-dÉ™, ËŒprÅ�-\Function: noun.2 : the spreading of ideas, information, or rumor for the purpose of helping or injuring an institution, a cause, or a person.
3 : ideas, facts, or allegations spread deliberately to further one's cause or to damage an opposing cause; also : a public action having such an effect. -
Aiyah, anything la
If alternative viewpoints are also called propaganda, I have nothing else to add
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it reflects in their thinking that global economies will recover in the future so this is good value to "Buy" well recovery will be snail pace and projected 2011 might be in recession ..........
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Originally posted by βÎτά:
AFP talks about profits, while ST sidetracks and talks about portfolio value.
Decreases in profits are due to lower returns in the portfolio, while increases in portfolio value could be due to capital injection to acquire more portfolio.
Kudos to ST for a fine piece of propaganda work.
I buy a stock at $1. I sell it at $1.50. I made a 50% profit.
I buy a stock at $1. My mummy gives me another $1 to buy the same stock. My portfolio value is now $2 and has increased by 100%.
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Originally posted by charlize:
I buy a stock at $1. I sell it at $1.50. I made a 50% profit.
I buy a stock at $1. My mummy gives me another $1 to buy the same stock. My portfolio value is now $2 and has increased by 100%.
The thing is, if you had made a loss on point no.1, you kept it secret. While you emphasized the part about your portfolio value increasing 100%.
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Originally posted by charlize:
I buy a stock at $1. I sell it at $1.50. I made a 50% profit.
I buy a stock at $1. My mummy gives me another $1 to buy the same stock. My portfolio value is now $2 and has increased by 100%.
wat u say is in theory only, is it ?
or u mean in Temasek Annual Report, when new capital introduced are not reported in the statement and the amount is just lumped together with the old capital ? Cannot be lah.
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a case of looking at a half glass empty or half glass full...
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Originally posted by Seowlah:
wat u say is in theory only, is it ?
or u mean in Temasek Annual Report, when new capital introduced are not reported in the statement and the amount is just lumped together with the old capital ? Cannot be lah.
I am trying to highlight what "profit" and "portfolio value" could mean.
I am sure other finance experts can give you a more technical explanation.
My explanation is targetted for the common ah pek ah soh.
Like me.
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Originally posted by charlize:
I am trying to highlight what "profit" and "portfolio value" could mean.
I am sure other finance experts can give you a more technical explanation.
My explanation is targetted for the common ah pek ah soh.
Like me.
Good one!
Good explanation for the common layman like me
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My portfolio value is now $2. ($1 from me, $1 from my mummy)
If the stock price drops and my total portfolio value declines to $1.50, my total portfolio value is still up 50% from the original $1 initially.
So even if you are making losses on your stocks, your portfolio value could still go up.
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Originally posted by charlize:
I am trying to highlight what "profit" and "portfolio value" could mean.
I am sure other finance experts can give you a more technical explanation.
My explanation is targetted for the common ah pek ah soh.
Like me.
Indeed, your example is good and clear where it shows a 50% of profit and a 100% increase in portfolio value.
But it is just unbelieveable that when new capital introduced are not reported in the annual report and the amount is just lumped together with the old capital.
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There is no requirement to produce a full audit report, they only provide a summarized financial statement which provides very restricted information.
But it's a fact net profits has fallen 25.8%.
I also see a capital injection of S$25 billions in the FS.
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Temasek Holdings portfolio value hits record S$186b
By Desmond Wong | Posted: 08 July 2010 1415 hrsSINGAPORE : 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
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financial time has an article on it and it has a depiction of what percentage that is invested to what region.......
go read if you are interested....
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Originally posted by Arapahoe:
financial time has an article on it and it has a depiction of what percentage that is invested to what region.......
go read if you are interested....
please post for the rest to read.
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how are the average people benefittin from this?
still get to keep their underpaid jobs?
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They already have GST to help the people.
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i'm praying real hard............the next big crash will wipe out Temasek at least by 50%...............hopefully by 90%.............
Ho Ching will be immortalized as the greatest flop of all time...............that brainless fool...............if LKY's useless son wasn't screwing her pussy, Ho Ching would still be a nobody !