This is the title of an article on the release of Temasek Holding’s financial report. I went through briefly on the charts and totally disagree with this comment. I tried to figure out what which auditing company did the report, or was it done internally, but could not find any names mentioned. So I presume it must be an internal auditor.
What was reported was simply excellent. I think not many fund managers can boast of such remarkable financial returns over the same period covered. I am greatly impressed with the super talents running it. Time to reward them handsomely.
The report covers a period from 2004 to 2011 which was hit by the global financial crisis in 2008. Temasek was badly hit like everyone, and its portfolio value fell from $185b to $130b, registering a loss of $55b. This is no small peanut. In the train I used to read this advert from a fund manager boasting of a whopping US$5b that it was managing. Now look at the $55b being wiped out within a year. That was easily an equivalent of wiping out 10 big fund managers completely.
But no need to worry. In year 2010, Temasek fully recovered from all its losses and its portfolio went back up to $186b, a whopping and unbelieveable recovery. And now 2011, it added another $7b to top $193b. Can you beat that?
Another better indicator is that throughout the period of 2004-2011, Temasek registered profits every year! Even during the global financial crisis, it booked a net profit of $6b and $5b in 2009 and 2010 respectively. If this is not impressive what is? The portfolio could be wiped out by $55b and there was still profit to be made, approximately about 10,000 peanuts.
I think those analysts that tried to talk down this fantastic report of Temasek need to have their heads checked. It is probably the best fund manager the world has ever seen. I don’t think any sovereign fund or funds of this size could do any better than Temasek in the same period.
It is a company that practically cannot lose money no matter what crisis is in the air. Better put in more money for Temasek to manage. Well done, and time for a well deserved fat bonus.