Total Shareholder Return of Portfolio

Temasek Holdings released the financial results for the year to 31 March 2016. The one-year return to shareholder was -9.02%. This is the measure known as Total Shareholder Return (TSR) in S$ term. It comprises dividend return (actual income received) and price return (resulting from changes in valuations of investments as at year end). It includes both actual cash inflow resulting from income earned on investments and the price differential between fair value of investments and cost of investments. The latter is unrealised gain or loss on investments that can be reversed in the next accounting period.

The Total Shareholder Return (TSR) is a good measure of your investments. It is reflective of investing skills of investor.

Generally 2015 was a difficult year for fund managers/investors. Temasek Holdings suffered -9.02% TSR for the year ended 31 March 2016.

I decided to compile the TSR for my portfolio. The results were as follows:

Year TSR
2011 -3.93%
2012 1.70%
2013 1.03%
2014 3.01%
2015 -0.84%

2011 was a challenging year for investors. The Eurozone debt crisis was in full swing that started in 2010. There were bailouts for some countries like Greece, Italy and Spain. My TSR for 2011 was -3.93%.

2015 was also a difficult year. The oil crisis hurt the investors generally. China was not doing well economically. My TSR was -0.84%.

2016 was particularly difficult so far. The Brexit (Britain exiting EU) on 23 June had so far hurt investments. My interim TSR was not good. I cannot imagine the end performance for 2016.

Copyright © 2016, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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