Uncle Leong: Annual Reports Confusing for GIC, but not for Temasek?

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An honorable member of the Coffee Shop Has Just Posted the Following:

Minus 3.46% real return in S$?

With regard to the nominal annualised rate of return of 2.6 per cent which is lower than last year’s report’s 3.4 per cent in US$ for the last five years, with the US$/S$ exchange rate declining from 1.3799 on 31 March 2008 to 1.2436 on 28 March 2013, I estimate the nominal annualised rate of return in S$ to be about only 0.49 per cent.

After adjusting for annualised inflation in Singapore of about 3.95 per cent from 2007 to 2012 , I estimate the real annualised rate of return in S$ to be about minus 3.46 per cent.

Also, why is it that the GIC’s annual report can give the real annualised return in US$ for 20 years, but not for 5 or 10 years? Only the nominal annualised returns are given for 5 and 10 years.

“More or less” confusion?

If my computed estimates above are correct, I wonder whether Singaporeans are now “more confused” or “less confused” by the decision not to disclose the GIC’s returns in S$ too?

Why would continuing to disclose returns in both US$ and S$, like in the past, be “confusing”?

Do you see any logic in this?

- http://www.theonlinecitizen.com/2013...-no-s-returns/


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