As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Value Investing
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Tuesday, 9 July 2019

Temasek posts 1.49% one-year return; divestments outpace investments

TEMASEK Holdings on Tuesday reported a one-year total shareholder return (TSR) of 1.49 per cent for the 12 months ended March 31, 2019, reflecting market volatility as it warned of lower returns expectations for the longer term amid weak global growth.

This compared with the 12.2 per cent TSR posted in the year-ago period, with TSR a compounded and annualised measure that includes dividends paid to its shareholder but that excludes its shareholder's capital injections. Compounded over 45 years since its inception in 1974, annualised returns stood at 15 per cent.

The Singapore investment firm's net portfolio value grew to S$313 billion, up from S$308 billion a year ago on a Sing-dollar conversion basis, it said in its annual report released on Tuesday.

During the year under review, Temasek shifted into divestment mode, divesting S$28 billion in assets, and investing about S$24 billion in the same period. Temasek had guided a year ago that given the market outlook, it may recalibrate and slow its investment pace over the next nine to 18 months.

Temasek received dividend income of S$9 billion from its portfolio.


20 Years CAGR TSR

CW8888 : 6.3%

Temasek : 7%








7 comments:

  1. 4 to 5% is reasonable for retail to achieve

    ReplyDelete
  2. We thank Mr Raymond Koh Bock Swi for his views in his letter to the Straits Times Forum (Investment strategies at GIC, Temasek may be too conservative, July 19)

    He noted that Singapore term deposits "can already earn up to 2 per cent in interest".

    Temasek's portfolio gives us a steady dividend yield of about 3 per cent. This is one key source of funds for us to make new investments.

    Mr Koh further recommended that Temasek aim for investments with "stable and attractive returns", and avoid the "unhealthy" feast-and-famine returns of 12.19 per cent two years ago, to 1.49 per cent last year.

    Most investors recognise that a portfolio of mostly equities, like ours, is inherently volatile on a year-to-year basis.

    This is offset by an expectation of higher positive returns over the long term. Returns are affected by the market value of listed assets.

    These can fluctuate greatly depending on various factors, including the likelihood of interest rate cuts as far away as the United States.

    Over the last decade or so, our one-year returns have ranged from -30 per cent in March 2009, to the +43 per cent rebound the following year.

    However, over 10 years, we delivered a steady 9 per cent compounded annual total return to our shareholder.

    In dollar terms, our net portfolio was up $183 billion, from a trough of $130 billion in March 2009, to $313 billion in March this year.

    A return number will always depend on the starting point and the ending point.

    This is why we report our returns (as well as rolling returns) over various periods, including longer periods, for a more complete picture of our performance. This is how we think as a long-term investor.

    Our total shareholder returns include dividends that we pay to our shareholder. Conversely, any capital from our shareholder would not be counted as part of our returns.

    We aim to deliver sustainable risk-adjusted returns over the long term, as an owner and generational investor.

    We have actively reshaped and grown our portfolio over the years. Overall, we are comfortable that we have a resilient portfolio, which can deliver over various market cycles.

    We don't manage our portfolio for "maximum returns". We also don't manage government surpluses, the official foreign reserves, or CPF savings.

    Mr Koh and others may visit: http://tmsk.sg/cwWZr to understand more about our performance, and in particular, how we manage our investments and risks.



    Stephen Forshaw
    Head, Public Affairs
    Temasek International

    ReplyDelete
    Replies
    1. Agreed: A return number will always depend on the starting point and the ending point.

      Wealth exposed to Mr. Market may be an illusion during Bull!

      Strength of wealth is shown during Bear!

      Delete
  3. That's how Fund Managed companies always do to show their most attractive CAGR.

    ReplyDelete
  4. And what's your ending point?

    Still fishing?

    ReplyDelete
    Replies
    1. Think one more last market cycle to accumulate and probably that is the end point. Let it be!

      Delete
  5. Hmm..i think U think only.

    Once in the market for long-term, it means for life for me.

    And i look at the market daily since 1987/8.

    Detrimental to investment result?

    Not really for me.

    Always like to feel the markets more then analyse the markets.

    ReplyDelete

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