TEMASEK Holdings has been given a perfect 10 in a report on transparency among sovereign wealth funds (SWFs) published yesterday.

In the Linaburg-Maduell Transparency Index developed by the California-based Sovereign Wealth Fund Institute, Temasek got full marks for transparency in the fourth quarter last year.

The Government of Singapore Investment Corporation (GIC) was rated six.

Critics have often called for greater transparency from SWFs, which they suspect may be driven by political rather than economic interests in their investments.

The index is a method of rating transparency in these government-owned investment vehicles.

It is based on 10 principles, and gives points to each sovereign fund for providing its updated independently audited annual reports, investment guidelines and total portfolio market value, among other criteria.

Last year, Singapore said it would support a new voluntary framework aimed at achieving greater transparency for SWFs.

As of March 31 last year, Temasek managed a $185 billion portfolio, while GIC said it invests 'well over US$100 billion (S$154 billion)', according to its own website. GIC's exact worth is not known.

Last year it published its first-ever annual report since it was set up in 1981.

Temasek, on the other hand, has published five annual reports starting from 2004 with details on the returns it earned on its portfolio, and its investments by geography and sector.

The Government Pension Fund-Global of Norway, which has a portfolio of about US$380 billion, also received the maximum rating of 10.

ANANYA ROY

This article was first published in The Straits Times.