Monday, August 4, 2014

Tired of Stockpicking? Let Temasek Holding do it for you!

Based on the 20 year performance of Temasek Holdings ending in 2012, they managed to outperform the benchmark of the MSCI Singapore by a factor of 2.5 times! How you would like it if you could know some of their stock picks?

Well, I read an interesting news piece, but it is actually a bit dated. It is about how government-linked companies have better corporate governance.

This research was done by NUS, and the full pdf report can be read at the link.

Personally, I just find it quite interesting to look at the chart of all the government linked companies and their percentage of ownership (page 24). The page is one of the few flipped, so I can't take a screenshot and post it. I never realized that there were so many government-linked companies (GLC) and REITs (GLREITs) until I saw the chart.

From my count, there are 24 individual GLCs and 8 GLREITs.

If you are lazy to hold so many counters, just simply holding the main parent counter will require you to hold 16 counters only. The other 16 are owned as a percentage by these parent counters.

I think it is quite nice to know that at least GLCs and GLREITs have better corporate governance. However, the real question is: Does better corporate governance lead to better performance and returns?

Hmmm, when I am more free, I think I will do a small simple study using a few of the GLCs and GLREITs as proxies and compare it to the STI as a benchmark, just to see what kind of results I can get.

Any thoughts on government-linked companies or REITs?


  1. Ha Ha. I also include Temasek as one of my benchmarking.

    1. And you beat Temasek 10 and 20 year returns! Congrats, very good track record uncle!


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