Why is it that Temasek does not disclose its ‘management costs’ like Norway’s sovereign wealth fund?

I refer to the article “Norway’s $1 Trillion Oil Fund Taken to Task Over Rising Cost” (Bloomberg, Jan 18, 2018).

It states that “The ministry said that management costs have risen “significantly over time” and are projected to hit 3.5 billion kroner ($446 million) this year, up from 2.1 billion kroner in 2014. The ministry pointed out that based on its 2017-2019 strategy plan the fund is now running ahead of schedule in terms of employees.”

So, does it mean that the “management costs” of Norway’s Sovereign Wealth Fund (SWF) is about 0.05 per cent ($446 million divided by $1 trillion) of its portfolio value?

To the best of my knowledge, I understand that Temasek does not disclose its  “management costs” (such as the CEO’s annual remuneration) like Norway’s SWF.

What we know is that Temasek’s administrative expenses were S$8.4 billion in 2017, on a net portfolio value of S$275 billion.

Of course, Temasek has clarified that its “administrative expenses” – “”This (administrative expenses) also included expenses of subsidiary companies such Singapore Airlines, PSA, and others, and not for Temasek Holdings only”” (“Temasek Holdings responds to NSP’s claims“, Yahoo News, Aug 23, 2011).

Perhaps Temasek can go one step further by disclosing its “management costs” like Norway’s SWF.

Do most SWFs report “management costs” like Norway’s or just “administrative expenses” like Temasek?

Do most SWFs report “administrative expenses” that include the “expenses of subsidiary companies” (which it owns wholly or partly in its portfolio?) like Temasek?

 

Leong Sze Hian

 

 

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10 Responses to “Why is it that Temasek does not disclose its ‘management costs’ like Norway’s sovereign wealth fund?”

  • Rabble-rouser:

    Overpaid & absolutely underperforming! No need to say further.
    In Australia, under the CANSTAR financial comparison website, Temasek Holdings would probably be rock bottom of their ranking universe.
    Link: https://www.canstar.com.au
    The lack of Transparency on Temasek’s part is obviously telling! That is mirrored by the lousy CPF Board whose trying everything to stop people from accessing their retirement funds.
    The Investment side of the PAP govt is failing badly re: Hyflux’s dallying with the bankruptcy courts, 2013 LNG Plant investment – these 2 factors were directly responsible for the incredible costs increases for water & electricity. Hardship for the people.
    Like frogs bathing in warm waters, wake up! The setting has turned to full boil by the PAP but you guys are still sleeping!

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  • another:

    Because they are paid way too little ?

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  • No Guaranteed Sits:

    You will have to vote them out to do Sovereign Wealth Fund health check and find out management fees etc.

    Otherwise you will get nonsense like 52 manyear and all kinds of bullshits to avoid answering even simple question.

    OTC tried and end up dead for it. That’s the only way…. “OUT”.

    Sinkies should take back control and use your vote wisely. Its high time Sinkies tell Pay and Pay that the “SITS” are not guaranteed always same.

    Pay and Pay need to earn their “SITS” from now on or F*UCK OFF.

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  • Bapak:

    Cause the moment they disclose, there will certainly be a riot.

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  • UniQ:

    After so many years of sucking from Sinkies Blood $$, plus those rampant investment made that loss Billion$$.

    Does anyone really think these Papigs will be transparent ?

    Listen, They can go so low ball to invent an Indian to a Malay, plus bulldozing the constitution for EP. You really think they will show you the MONEY TRAIL ? GET REAL PLEASE !!

    FAT HOPE !!

    Only way is to move in a new gahmen and hang all the document in GIC and MAS to dry.

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  • HarderTruths:

    Management costs will be billed to one address only. We all know where that is.

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  • Shocking. Everyone must see.:

    Here’s from the Norway fund annual report 2017 (https://www.nbim.no/contentassets/49715a01ed684b1686ff3c017f1efa12/annual-report-2017—government-pension-fund-global.pdf)

    Fund size: 8488 billion kroner = 1.4 trillion Sing dollar
    CEO pay 6.7 million kroner = 1.1 million Sing dolar
    Investment returns for 2017: 13%

    For managing a fund that is 4 times bigger than Temasek Holdings, the CEO pay is only S$1.1 million.

    To put this in perspective, his pay is a lot less that SMRT CEO, which is just managing a small part of Temasek Holdings. His pay is very likely less than the CPF CEO who gives us very lousy returns of 2.5%. Remember that the CPF CEO does zero investment work. He passes all the money to the minister.

    You have to wonder why Singapore public servants are paying themselves multi-million salaries.

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  • N.Jungne:

    President Hanyamah has told us all there is to tell. Milo Gao KOSONG is clear enough, what more do we want? Paiseh paiseh must Wayang abit.

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  • Flabbergasted:

    N.Jungne:
    President Hanyamah has told us all there is to tell. Milo Gao KOSONG is clear enough, what more do we want? Paiseh paiseh must Wayang abit.

    wonder what her going rate will be in geylang

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  • F these spiders:

    THese spider ministership talks about productivity ass the sole avenue to get our economy going. THese Fspider are the most unproductive in terms of every dollar paid to them. THese Fspider MP had no Fballs to ring the red bells, call out wrong doings of their Fspider boss equally are unproductive for every dollar paid to them. PROductivity is hijacked and held hostage as to why SME are struggling. THese Fider minister paid themselves hansomely and squeeze till SME die.

    Do you know why singaporean cannot call Singapore their homes? Every good biz are owned and controlled by the State. Key office bearer are like dogs on a lease waiting to be fed with government honey pot. The nominated dogs must ask and smell the farts of their Fspiders master. THe way to let THese Fspider minister get a taste of their own poison is to relocate your biz and let these assholes get a taste of their own poison. Enough is enough.

    THese MF spider are not worth wasting our time on. They can rule over a bunch of clueless migrants .

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