Temasek Review 2018

Total Shareholder Return

We track our total returns to our shareholder over various periods.

Total Shareholder Return (TSR) is a compounded and annualised measure, over a defined period. This indicates the returns a shareholder receives in total from an investment, including dividends paid to the shareholder and excludes capital injections from the shareholder.

Our TSR over short, medium and long time periods provides a snapshot of our performance. The starting and ending point matters. Some choose to measure over different periods based on market performance, such as peak to peak, or trough to trough. Others may measure off certain key milestones, such as a change in strategy.

As at 31 March 2018, our Singapore dollar one-year TSR was 12.19%. Our three-year TSR was 4.99%, softened by falls in equities markets in 2016.

Our long term 10-year TSR was 5%, with 20-year TSR at 7%, and 40-year TSR at 15%. Annualised core inflation over these corresponding periods was under 2%.

We track our TSRs against our aggregated risk-adjusted cost of capital. The latter is derived using a capital asset pricing model. Our risk-adjusted cost of capital is built bottom-up, and aggregated over all our investments to provide a sense of the overall financial risks taken.

S$ Total Shareholder Return (%)

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