Despite the state media giving extensive publicity to its ‘excellent’ performance in the last financial year, Temasek Holdings’ annual return for 2010 pales in comparison to the sovereign wealth funds of other countries.
China Daily reported two days ago that China Investment Corp (CIC) added $35.7 billion in new investment in 2010, which reduced the cash balance in the sovereign wealth fund’s (SWF) overall portfolio from 32 percent to 4 percent, according to its 2010 annual report released on Tuesday.
In contrast, the value of TH’s portfolio asset base grew by a mere $7 billion to reach $193 billion. It is not known how much were paid out as dividend to its sole shareholder, the Ministry of Finance (MOF). Equally, it is not known how much of the rise in value of its investment portfolio had investments financed out of incremental bond borrowings and how much were fresh injection of capital from MOF.
CIC reported a net profit of $51.5 billion in 2010, with a net asset value of $374 billion. The annual return rate of its global portfolio reached 11.7 percent, and the accumulated annual return rate since establishment stands at 6.4 percent. Full story
