One of the criticisms that has been made of Temasek is that it does not publicly show the breakdown in performance between its legacy assets (acquired before 31 March 2002) and its post-March 2002 assts when it became a very active investor. Because Ho Ching became CEO in 2002, this would also show how well Temasek did with her in charge. Waz her performance like? Do the Merrill Lynchs, Barclays, Shins and ABCs outweigh the StanCharts and Chinese banks; or vice versa?
Well we now have an idea. In its latest annual report, Temasek said, “Investments made since 2002, when we stepped up our exposure in Asia, delivered annualised returns of almost 21% to Temasek”, while investments made before March 2002 delivered annualised returns of 11% over the last nine years.
It also showed that of the S$193bn in portfolio assets as at 31 March 2011, S$100m were post March 2002, while only US$93m were legacy assets. http://www.temasekreview.com.sg/investments/inv_framework.html
And in a presentation slide, it said that S$100 in these new assets in 2002 would be worth S$550 today while S$100 in legacy assets would be worth S$270.
(All these also appeared in newspaper ads.)
The numbers look gd.
Problem is that I have conceptual issues linking this information with the information given on other pages of the report (which indicate, as ST reported, that its recent performance is OK but nothing great), and the presentation. I also have questions on the definitions of certain terms used and the methodolgy used. As I doubt Temasek would entertain questions from me, I will remain confused.
Another problem I have is that our constructive, nation building MSM did not declare Ho Ching an investment genius. On the face of it, 21% annualised returns over nine years is to be praised, not kept quiet about. At a time when her hubby is having to deal with the anger of many voters over govmin policies and the incompetent arrogance within the PAP, surely playing up the role of Ho Ching is sumething our media should be doing. At least he has an investment genius as his Mrs.
Reminds me of the Sherlock Holmes mystery that he solved by asking the question, “Why didn’t the dog bark?” Why I don’t know.