Temasek Holdings Reports S$7.3 Billion Loss in FY2023, While Norwegian Sovereign Wealth Fund Expects Quarterly Profit of $84 Billion – The Online Citizen Asia

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Singapore’s sovereign wealth fund (SWF) Temasek Holdings reportedly lost S$7.3 billion in its 2023 fiscal year.

Temasek said its net portfolio value fell 5.2% to S$382 billion from S$403 a year earlier. It also reported a one-year total shareholder return (TSR) of -5.07%.

Temasek said the loss was mainly due to changes in accounting standards, but new accounting standards were introduced in 2018, as revealed by Temasek’s Chief Financial Officer Pun Ching Yi. It is the first time a loss has been reported since the

In 2023 investment activity, Temasek invested S$31 billion and sold S$27 billion, resulting in a net investment of S$4 billion. A cautious approach amid global uncertainty and a slowdown in global trading activity amid tight liquidity restrained investment pace.

As of March 31, Temasek’s portfolio is mainly concentrated in Asia, accounting for 63% of the total. Singapore, China and the Americas remained the largest markets with potential exposure of 28%, 22% and 21% respectively.

By sector, transportation and industry accounted for 23% of Temasek’s portfolio, up 1 percentage point year-on-year. Financial services dropped two points to his 21%, where he fell to second place, while communications, media and technology rounded out the top three with 17% of him.

Last year, the group’s decision to invest in cryptocurrency firm FTX resulted in write-downs of more than US$275 million (approximately S$369 million) in November 2022.

Nevertheless, Chief Investment Officer Rohit Sipahimalani, a graduate of St. Stephen’s University in Delhi, said the decision was part of an early-stage investment portfolio and would limit investments to less than 6% of the total portfolio. emphasized that the risk was reduced by

Norwegian sovereign wealth fund profitable

Meanwhile, Norway’s $1.4 trillion SWF Global Pension Fund posted a quarterly profit of $84 billion (S$112 billion), it was reported in April.

In fact, the return on investment was 5.9% in the first quarter, helped by the stock market rally.

The Norwegian fund said the stock market was the biggest tailwind for the fund, up nearly 8%, even as fears of a new banking crisis roiled markets in March.

“Equity market gains are largely due to the technology and consumer discretionary sectors,” the company said in a statement.

Norway has a population of only 5.5 million, so that equates to over US$15,000 per person. The firm’s sovereign wealth funds have posted positive annual relative returns since 2009.

As of March 31, about 70% of its assets are held in equities, with 27.3% in bonds, 2.4% in private real estate and 0.1% in private renewable energy infrastructure.

The Norwegian Central Bank manages the fund, which owns 1.5% of all world listed stocks and holds shares in 9,200 companies.

Difference between Norwegian SWF and Temasek

All investments made by Norwegian SWF are transparent and published on the website, regardless of whether you are a Norwegian citizen or not.

In contrast, Temasek only publishes consolidated results that do not disclose the flow of funds between its subsidiary investments, and it appears that not all of its investments are listed on its website.

This contrast is also evident from the salary disclosures within SWF. His SWF in Norway publishes his CEO’s salary along with a range of salaries paid to employees.

For example, it is no secret that Nikolai Tangen, CEO of Norges Bank Investment Management, which manages SWF, earns $6.87 million a year.

Temasek, meanwhile, argues that it is not required to disclose salaries paid to management, including the CEO, because it is a privately held company.

In its latest annual report, Temasek booked S$10.4 billion (US$7.77 billion) in administrative costs for its 957 employees as of 31 March 2023. In contrast, Norway’s SWF reported total salary payments to its employees of US$1.22 billion. The number of staff is 582.

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