GIC, Temasek & MAS 01 (May 08 - Aug 09)

[winston]

S'pore GIC to stick with investment in Citi, UBS

SINGAPORE, May 19 (Reuters) - The Government of Singapore Investment Corp (GIC) said on Tuesday it plans to continue holding its stakes in Citigroup and UBS .

"GIC is a long-term investor and will continue with its investments in Citigroup and UBS," a GIC spokeswoman told Reuters.

Some analysts had expressed concerns GIC and other sovereign funds might follow in the footsteps of Temasek [TEM.UL], which sold off its 3 percent stake in Bank of America in the first quarter to realise a hefty loss of at least $3 billion.

[iam802]

From Reuters

REFILE-Singapore's Temasek explains Bank of America sale

(Refiles to remove extraneous text below sign-off)

SINGAPORE, May 22 (Reuters) - Singapore state investor Temasek [TEM.UL] has defended the divestment of its Bank of America (BAC.N) stake at an estimated loss of more than $3 billion, saying the risk environment and nature of the investment had changed.

Temasek, which got a 3 percent stake in BofA after the latter bought Merrill Lynch in September 2008, sold its stake in the U.S. lender in the first quarter of this year, according to a regulatory filing last week. [ID:nSIN454726]

In a letter to the Straits Times newspaper on Friday, Temasek Managing Director for Corporate Affairs Myrna Thomas said the state investor had bought into Merrill's "specific businesses" but ended up with BofA's "linkage to the broader U.S. economy".

"The risk-return environment had also changed substantially," she said without elaborating.

"We may choose to divest an investment, even at a loss, to optimise our risk or portfolio exposure, or if there are better opportunities elsewhere or later," she added.

The loss on BofA attracted fierce criticism from Singapore's usually muted pro-government media, which noted BofA shares have rallied more than 70 percent since the end-March.

Temasek, which invested in Merrill in December 2007, had previously described its investment as long term. (Reporting by Kevin Lim; Editing by Alex Richardson)

What about ABC Learning?

If BofA risk-return has changed so much....isn't ABC Learning also of concern?

I am lost.

I thought long long time ago....LKY says must use layman English to explain things.

Now, I read a Press Release and it still does not answer questions that I have. Sigh....

[winston]

In the past, it's always safer to invest in a GLC.

This round, they are the ones who are asking you for more money thru a Rights Issue, diluting EPS in the process..

[winston]

And the government should also encourage more transparency and openness in dealing with the public, said MP Michael Palmer.

Citing Temasek Holdings’ divestment of its entire 3.8 per cent stake in the Bank of America, he said online forums were abuzz with discussion on this issue.

"Clearly, the public wanted to know the rationale and reasons behind the decision to sell what was originally meant to be a long—term investment made with public funds. Unfortunately, due to the lack of information, speculation and discontent were rife," said Palmer, GPC chair for Defence and Foreign Affairs, and MP for Pasir—Ris Punggol GRC.

Mr Palmer said while Temasek finally issued a statement on May 21 explaining the rationale for the sale, questions remain, such as those relating to the timing of the sale and the actual sale price.

MP Inderjit Singh shared similar sentiments.

He said: "Both GIC (Government of Singapore Investment Corp.) and Temasek have evolved in their investment strategies GIC used to focus on very long term investments, following investment principles which were somewhat conservative but generated good returns.

"Temasek used to invest in Singapore or government—linked companies at the very early stages, bringing them to become Singapore multinationals. Temasek in fact moved into what GIC used to do, investing overseas, and GIC has also begun investing in more risky investments. Should we allow so much of our reserves to be placed with GIC and Temasek, or should reserves be placed in much safer investments managed by people who understand that these are meant to be long term investments."

http://sg.news.yahoo.com/cna/20090525/t ... 1650b.html

[kennynah]

yak yak yak..... nothing will come out of it except that these people who questions...just sealed their own coffins... dun believe...watch how these 2 people will eventually fade into oblivion sooner than later...

[BlackCat]

What about ABC Learning?

I think ABC learning is delisted from ASX, now in receivership.

Sell, don't sell.... same...

[winston]

Temasek made net gain of $39 bln since 2003-finmin

SINGAPORE, May 28 (Reuters) - Singapore sovereign wealth fund Temasek will remain a long-term investor despite its early exit from Bank of America and the fund made S$56 billion ($38.5 billion) in the six years since March 2003, Finance Minister Tharman Shanmugaratnam said on Thursday.

"The facts are Temasek has produced strong returns over time," Tharman told Singapore's parliament. "It is not realistic to outperform in every cycle." The government has come under fire from Singaporeans and lawmakers over losses at state investment firm Temasek, in particular its ill-timed exit from Bank of America which resulted in a loss of over $3 billion.

[kennynah]

saying what they made; ie S$56Bil, is not sufficient info.... to inform the public what the % returns annually is more meaningful...don't you think?

anyways...they say only, we must believe??? who does the auditing?

[iam802]

If we are not OUTPERFORMING...then the talents are not worth the salaries paid.

If I want average returns , I buy index, correct? (but, then....I newbie...don't know much about investment).

[kennynah]

If we are not OUTPERFORMING...then the talents are not worth the salaries paid.

If I want average returns , I buy index, correct?.

hehehehe.... if you own a pet dog...you will also want your dog to eat good, sleep well, right?