{"id":18596,"date":"2018-07-07T13:55:14","date_gmt":"2018-07-07T13:55:14","guid":{"rendered":"http:\/\/leongszehian.com\/?p=18596"},"modified":"2026-03-22T21:29:54","modified_gmt":"2026-03-22T21:29:54","slug":"norway-fund-management-costs-us0-5b-temasek-admin-expenses-s8b","status":"publish","type":"post","link":"https:\/\/leongszehian.com\/?p=18596","title":{"rendered":"Norway fund “management costs” US$0.5b, Temasek “admin. expenses” S$8b"},"content":{"rendered":"

Why is it that Temasek does not disclose its “management costs” like Norway’s sovereign wealth fund?\u00a0<\/strong><\/em><\/p>\n

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

It states that “The ministry said that management costs have risen \u201csignificantly over time\u201d 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.”<\/p>\n

So, does it mean that the “management costs” of Norway’s Sovereign Wealth Fund (SWF) is about 0.05 per cent\u00a0($446 million divided by $1 trillion)\u00a0of its portfolio value?<\/p>\n

To the best of my knowledge, I understand that Temasek does not disclose its\u00a0 “management costs” (such as the CEO’s annual remuneration) like Norway’s SWF.<\/p>\n

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

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\u2019s claims<\/a>“, Yahoo News, Aug 23, 2011).<\/p>\n

Perhaps Temasek can go one step further by disclosing its “management costs” like Norway’s SWF.<\/p>\n

Do most SWFs report “management costs” like Norway’s or just “administrative expenses” like Temasek?<\/p>\n

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

Leong Sze Hian<\/p>\n

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