company owned by the Government of Singapore. It is also well-known that the company
is run by our Prime Minister’s wife Ho Ching operating as the Executive
Director and CEO of the company.
know about Temasek Holdings?
Temasek portfolio and performance. Let us then take a closer look into one of our
country’s largest investment company.
Holdings is owned by Government of Singapore Investment Corporation (GIC), a sovereign
wealth fund that manages Singapore foreign reserves. GIC’s assets stand at US$330b.
misunderstood, Temasek Holdings is neither a
statutory board nor a government agency. It operates under the provisions of
the Singapore Companies Act and has its own board of directors and a management team. It pays taxes
to tax authorities and distributes dividends
to its shareholder, the Singapore Ministry of Finance.
Temasek has many global offices and a multinational team of over 450 people.
This year, it opened a New York Office. Chairman of Temasek is ex-minister Lim
Boon Heng. Temasek owns and manages a net portfolio of S$223b (US$177b)
as of Mar 2014, mainly in Singapore and Asia. Its portfolio covers a broad
spectrum of sectors including financial services, telecommunications,
media and technology, transportation and industrials, life sciences,
consumer, real estate, as well as energy and resources.
few global firms assigned with the highest overall corporate credit
ratings of “AAA” by Standard
& Poor’s and “Aaa”
by Moody’s. It has also attained
perfect quarterly scores on the
Linaburg-Maduell Transparency Index, a measure of the openness of
government-owned investment funds.
investments, Temasek is also heavily involved in community and charitable
portfolio grows from S$354m in 1974 to a Portfolio of S$223b
today. In the last ten years,
portfolio has more than doubled from S$90b in Mar 2004 to S$223b in Mar 2014.
up S$122b from 10 years ago. Over 70% of
Temasek’s portfolio was held in liquid and listed assets.
last year is steady at S$11b, above group
average of net profit S$10b a year.
in key markets in Asia. Compounded annual return over last 10
years was 9%. Longer
term 20 year TSR was 6%. Since inception in 1974, compounded annual return
is 16%. TSR excludes
capital injections from shareholder and includes dividends paid to our
dividends from their portfolio companies and divestment proceeds. The company
also claimed that they make sure its Total Reserves equal or exceed its past
reserves, such that there is no draw on past reserve. This includes making sure
that every divestment is done at a fair market value.
countries in our portfolio, based on the underlying assets, are Singapore, China and
Australia at 31%, 25% and 10% respectively, as at 31 March 2014. Temasek underlying exposure to North
America and Europe grew to over 14%, up from
12% the previous year.
S$110b i.e. net S$80b.
Temasek commented, “Half of our new investments last year were in Asia, as
weakness in the growth markets gave us various opportunities to add to the
positions we like. Europe and North America accounted for about 40% of our new
investments. In absolute dollars, investments into these two regions increased
by 60% compared to the previous year.”
with major holdings in DBS, China Construction Bank and Standard Chartered each
worth more than S$10b.
which more than S$30b holding comes from Singtel’s 52% stake. Major stakes in
other Singapore companies include ST Telemedia, Mediacorp, and STATs ChipPAC.
The company also has major stakes in China Alibaba, India Bharti Airtel,
Thailand Intouch and USA Markit.
companies such as PSA, Singapore Power, SIA, Sembcorp, Keppel Corp, NOL, SMRT
and one German company Evonik.
Mapletree Investments and CapitaLand with holdings worth approx. 8.3b and 4.8b
Fortune 500, The Mosaic Company, a major producer of fertiliser, EUR2b
investments in Spain oil company Repsol SA, and S$2b stake in our very own
- AIA: Increase holdings to over 3.5%
- Industrial and Commercial Bank of China (ICBC): increase holdings in to
- Lloyds Banking Group: Taken 1.1% position
- Gilead Sciences, a major developer of treatments for cancer HIV and
other infectious diseases. Invested almost US$1b.
- Thermo Fisher Scientific, a provider of laboratory equipment and
consumables. Invested US$500m.
- BG Group, a UK-listed oil and gas company. Invested £235 million.
- Pavilion Energy, a Singapore company which focuses on LNG sourcing,
supply and solutions. Invested S$2b.
- Seven Energy, an oil and gas producer in Nigeria. Invested US$150m.
- A.S. Watson purchased from Hutchison Whampoa for US$5.7b invested worth
- Olam acquisition worth S$5.4b.
Divestments during the year included part of Temasek’s stakes in Bharti Telecom
and Seoul Semiconductor. The company also completely exited investments in
Tiger Airways, Cheniere Energy and Youku-Tudou.
years ago and had since achieved spectacular portfolio growth from S$354m to
S$223b. This means that S$1k investment in 1974, will be worth S$630k today.
their journey has just begun. I consider my investment journey also just begun.