Josephine Teo: GIC, Temasek won't take more risks

[Albeniz]

How many times must I tell (and promise) you?

 

我答应你这是最后一把，我一定会统统还给你的!

[Little_prince]

The second major acquisition in Africa by Temasek Holdings Pte or one of its units in six months shows the growing interest in a continent where many countries are expanding faster then developed markets.

Singapore’s state-owned investment company will buy a stake in Seven Energy International Ltd. for $150 million, the Nigerian closely-held energy company said in a statement April 14. That follows an announcement in November of a $1.3 billion investment in three gas blocks offshore Tanzania by Temasek’s liquefied natural gas unit Pavilion Energy Pte.

“It ticks all the right Temasek boxes as it is an investment in a fast-growing emerging economy and it is an investment in resources,” said Song Seng Wun, a Singapore-based economist at CIMB Group Holdings Bhd. (CIMB) “They are slowly getting more comfortable with the region.”

Temasek joins other investors including Carlyle Group LP and Robert Diamond’s Atlas Mara Co-Nvest Ltd. (ATMA) that are seeking to profit from the continent’s development. Nigeria has the potential to be one of the top 15 economies in the world by 2050, fueled by its population, which would account for about a fifth of Africa’s people by then, Jim O’Neill, a former chairman of Goldman Sachs Asset Management, wrote in a Bloomberg View column April 6.

“We are interested in investment opportunities in Africa where they fit our investment themes; in particular, around the transformation of economies and the demand for consumption by growing populations,” Temasek spokesman Stephen Forshaw said.

The International Monetary Fund forecast this month economic growth in sub-Saharan Africa will accelerate to 5.4 percent this year from 4.9 percent in 2013. It also forecast growth in Nigeria would rise to 7.1 percent from 6.3 percent.

 

Hong gan liao.... GST 10% soon...

[Porker]

 

 

Hong gan liao.... GST 10% soon...

Cannot liddat say Prince. There is a big LNG field off the coast of Mozambique and Tanzania. Some private equity guys are already exploring. Maybe just maybe this one will work LOL

[Little_prince]

Cannot liddat say Prince. There is a big LNG field off the coast of Mozambique and Tanzania. Some private equity guys are already exploring. Maybe just maybe this one will work LOL

business in africa just seem sibei dubious. ...

 

on paper everything looks good. end up instead of LNG, all they find is hot air...

 

money is as easy to lose as ABC...

[Porker]

business in africa just seem sibei dubious. ...

 

on paper everything looks good. end up instead of LNG, all they find is hot air...

 

money is as easy to lose as ABC...

 

It's more the dodgy and unstable political climate and lack of infrastructure that make Africa a difficult place to do business. I believe any proper investor with common sense will conduct their due diligence i.e. check if the LNG field does indeed contain LNG! LOL

[Little_prince]

 

It's more the dodgy and unstable political climate and lack of infrastructure that make Africa a difficult place to do business. I believe any proper investor with common sense will conduct their due diligence i.e. check if the LNG field does indeed contain LNG! LOL

Common sense isn't so common.

 

from the folks that lost hundred of millions in UBS...ABC learning centre etc, i'm not so confident...

[RadX]

siao liao....CPF min sum sure incease

 

 

Dip in annualised real rate of return for GIC

• By Nicole Tan
•  
• Posted 28 Jul 2016 06:00

The GIC office building in Singapore. (Photo: AFP/Roslan Rahman)

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SINGAPORE: Sovereign wealth fund GIC generated an annualised real rate of return of 4 per cent over the 20-year period that ended Mar 31 this year, down from 4.9 per cent a year ago, according to its annual report published on Thursday (Jul 28).

As the rate is calculated based on a rolling return, the investment firm attributed the decline partly to a bumper year in 1996 dropping out from the rolling 20-year return period.

Annualised Rolling 20-Year Real Rate of the GIC Portfolio since 2001. (Graph: GIC)

GIC explained that the 4 per cent rate of return also takes into account major events over the last 20 years, including the Dot Com Bubble and Bust in 2000 and the Global Financial Crisis in 2008.

The investment firm has well over US$100 billion in assets under management and its portfolio is distributed across six core asset classes – developed market equities, emerging market equities, nominal bonds and cash, inflation-linked bonds, real estate and private equity.

Over the past year, the investment firm said it has taken a more defensive approach, increasing its allocation to bonds and cash at the expense of some equity exposure.

Asset allocation to nominal bonds and cash rose to 34 per cent for the year ending Mar 31, edging down from 32 per cent the year before.

Over the same period, the asset mix in developed market equities fell to 26 per cent, compared to 29 per cent a year ago.

Asset Mix of the GIC Portfolio. (Table: GIC)

Looking ahead, GIC says real returns are expected to be lower in a protracted period of all-time low-interest rates, modest global growth prospects and high valuations of financial assets.

GIC Deputy Group President and Group Chief Investment Officer Lim Chow Kiat said the challenges include high debt and an exhaustion of policy options, especially in the area of monetary policy.

Valuations of financial assets are also high and returns based on starting valuations are low by historical standards, according to GIC.

The company estimated that a portfolio comprising 65 per cent US stocks and 35 per cent US bonds is expected to generate real returns of 1 to 2 per cent over the next 10 years, well below the historical average of 5.2 per cent.

Still, GIC said it saw opportunities for active investment in the current environment of low yield and high uncertainty by taking a bottom-up approach rather than allocating based on geographies and industries.

Mr Lim said there were two main situations that offered a "good starting point": Markets which have experienced a crash or bad sell-off - such as natural resources, commodities or even financials in some regions - and sectors that are fundamentally doing well such as healthcare.  

- CNA/mz

[Kopites]

They just spend million... on buying back smrt. Surely need to recoup from somewhere. History repeating itself. Nothing new.

[Wt_know]

we must give an absolute mandate ... $1M min sum and 99 years old drawdown age

if you cross to 100 ... you win ... lol

 

siao liao....CPF min sum sure incease

 

Edited July 27, 2016 by Wt_know

[Kusje]

Just disclose year on year la.

 

I wanna know how much of our money they lost or gained. No need to obfuscate with 20 year average just because they claim to invest for the long term.

 

Every single company on the sgx also claims to be for the long term but they don't report it like this.

Just disclose year on year la.

 

I wanna know how much of our money they lost or gained. No need to obfuscate with 20 year average just because they claim to invest for the long term.

 

Every single company on the sgx also claims to be for the long term but they don't report it like this.

[Wt_know]

i suggest to my boss that every year no need to do "appraisal" - why look at one performance in just 1 year

look at long term ... no 20 years no talk ... LOL

 

Just disclose year on year la.

I wanna know how much of our money they lost or gained. No need to obfuscate with 20 year average just because they claim to invest for the long term.

Every single company on the sgx also claims to be for the long term but they don't report it like this.
Just disclose year on year la.

I wanna know how much of our money they lost or gained. No need to obfuscate with 20 year average just because they claim to invest for the long term.

Every single company on the sgx also claims to be for the long term but they don't report it like this.

 

[Matrix0405]

The company estimated that a portfolio comprising 65 per cent US stocks and 35 per cent US bonds is expected to generate real returns of 1 to 2 per cent over the next 10 years, well below the historical average of 5.2 per cent.

 

=====

Wah , 1 -2% over next 10 yrs! CPF will have to cut their interest rate to match these 1-2%; even tho CPF & GIC have no relationship in anyway. Anw, GIC got audit or not?  

 

[Ktglfc]

Siao liao .. not only min sum will increase, but also may reduce the interest rate in SA, OA ...

 

possible? never say no ... sian !

 

Edited July 28, 2016 by Ktglfc

[Kusje]

The company estimated that a portfolio comprising 65 per cent US stocks and 35 per cent US bonds is expected to generate real returns of 1 to 2 per cent over the next 10 years, well below the historical average of 5.2 per cent.

 

=====

Wah , 1 -2% over next 10 yrs! CPF will have to cut their interest rate to match these 1-2%; even tho CPF & GIC have no relationship in anyway. Anw, GIC got audit or not?

Hmmm. Fixed deposit at some banks is paying more than this.

[Chowyunfatt]

How much is their Yearly Bonus again? ... 

[Wyfitms]

i suggest to my boss that every year no need to do "appraisal" - why look at one performance in just 1 year

look at long term ... no 20 years no talk ... LOL

 

haha, can 

 

only if your surname is Lee hor

How much is their Yearly Bonus again? ... 

 

according to people working/ worked there

 

10 mths average

 

those who outperform even more.. i won't know cos my friends are just happy to be average there 

 

so 35 yr old VP, conservatively $12k salary.. means bonus $120K 

Edited July 28, 2016 by Wyfitms

[Celicar]

I don't think the following points are going to be popular, but here goes anyway:

 

-     If GIC/Temasek can make more returns, I am sure they will like to as well. But unless there is underhanded manipulation (and not say want to do means can do), returns are at most an educated guess. No guarantee, no matter what investment you do.

 

-     I am not saying they are not paid well, but if you think you can do a better job, by all means apply for the position in Temasek to prove it and get that good pay. Otherwise, it is just about wanting the pay but not wanting the responsibilities that come with it.

 

* I don't work for GIC/Temasek.

[Lala81]

Hmmm. Fixed deposit at some banks is paying more than this.

 

Best SGD FD now is about 1.8% for 2 years. So nope.

It's very tough for pension funds and big funds like temasek and GIC currently.

 

The 10 year yield on US treasures is 1.5% at the moment.

Germany 10 year bonds are negative yield. So are Japs.

 

So the safest part of their portfolio is essentially definitely below inflation and below real returns.

Edited July 28, 2016 by Lala81