7/12/2006

How well did Temasek manage our reserves?

Attached is an article on Singapore and Temasek Holdings in the Fortune magazine of 20 March 2006, "Singapore Stumbles". I also refer to Temasek's letter to the Straits Times, Feb 7, 2006, "Temasek's 30-year returns a robust 18%". When I saw this statement pasted in the YPAP forum, I was dumbfounded. 18% in 30 years is considered robust? I put in fixed deposit for 30 years with a 2% interest will give me 60% return with no risk. And if the interest rate averages at 3%, I will get 90% return. What is 18% to crow about and managed by a team of experts and incurring all the risk of losing a bundle if the investment decisions went wrong? Today it was reported that GIC opened its book to detail its investments and LKY said GIC 'has earned an average of 8.2% a year in Singapore dollar terms since 1981.' Now this is more like it. How did Fortune get that 18% figure? I will be deeply disappointed if that is the case.

4 comments:

Dale Carnegie said...

Any fool can criticize, condemn, and complain - and most fools do.

redbean said...

hi dale carnegie,

welcome to the chat. and thanks for the wise comment.

we will like to hear more from you. it will make the blog livelier.

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