Portfolio Performance For the financial year ended 31 March 2012, our one-year Total Shareholder Return was 1.50 percent. Its investment returns supplement the country’s annual budget in areas such as education, R&D, health care and physical environment. He also said the size of the sale left his family with little choice but to consider overseas buyers. WeChat ID: temasek_digital. Temasek Review. In the previous year, the company sold S$9 billion of its holdings, it said. The Temasek Charter: Temasek is an active investor and shareholder. In 2006, at the height of the US real estate bubble, it made a US$200 million investment in the equity of Stuyvesant Town—Peter Cooper Village, the largest apartment complex in Manhattan (as well as US$575 million in secondary loans). Both ranked inside the top 10 SWFs in the world, the estimated combined holdings of these two companies top out at over $730 billion. ^+^. But Mr Thaksin rebuffed the criticism, noting that the management of Shin would remain Thai: "It's globalisation. In 2011 when UBS stock plummeted in part because of financial scandals and unwise investment, GIC faces losses of $7.4 billion if it sold the stock was when it bottomed out. Seatown was established and seeded with S$4 billion as a pilot project to invest independently of Temasek, with ability to hedge positions. \*\[Source: Sara Webb, New York Times, July 27, 2007 \*\], Controversial Sale of Shin Corporation to Temasek, Temasek's 2006 acquisition of Shin Corporation, owned by the family of then Thai prime minister Thaksin Shinawatra, was particularly controversial, with protestors burning effigies of Lee and Ho on the streets of Bangkok. This equates to approximately $210,000 per shareholder, or basically Singaporean citizen. +, There have been attempts to distinguish funds held by sovereign entities from foreign-exchange reserves held by central banks. [Source: Wikipedia +], In late 2007, during the first phase of the crisis, GIC invested $11 billion Swiss francs for a 7.9 percent stake in the Swiss bank UBS. In resource-scarce Singapore, our reserves act as a safety net for the country. AIS, in which Shin owns a 42.86 percent stake, saw its net income drop 10 percent to 1.98 billion baht for the quarter ended Sept 30 last year, due to an intense price war in the Thai market. Temasek is also selling its 67.4 percent stake in Indonesia's Bank Danamon (BDMN.JK) to DBS in exchange for DBS shares, in a deal that is awaiting regulatory approval. Section 107, the material on this site is distributed without profit. Hire and retain the best talent with accurate and reliable data Benchmark Your Teams . ^+^, Temasek Spends More on Investments, Adds Energy Holdings, In July 2012, Temasek said it spent the most on new holdings in four years as it added more energy and resources producers to its portfolio.Joyce Koh & Sanat Vallikappen of Bloomberg wrote: “The company said it made S$22 billion ($17 billion) of investments in the year to March 31, boosting assets to a record S$198 billion. GIC also has about $500 million of unrealized losses on its Citigroup Inc. (C) stake, according to Bloomberg calculations. We strive for the advancement of our communities across generations. Temasek now has a 1.3 percent stake in ICBC, a Temasek spokesman said. Temasek in the past five years has moved from being a passive custodian to being an active—and outstanding—investor. On 14 October 2004, it announced that it was closing the operational headquarters of ST Engineering and transferring the latter's assets to itself. Bombe-bastic Doughnuts: MasterChef Finalist Genevieve Lee On Starting Sourbombe Bakery, The 3 Pillars Of Digitising Your Business, The Ultimate Business Owners’ Guide To The HDB Home Office Scheme, 4 Thoughtful Ways Businesses Can Reward Your Employees For Their Hard Work In 2020, COVID-19 Has Changed Conversations In The Office This Year-End – Business Roundup (6 Dec 2020), Pros And Cons Of Disclosing Your Salary To Co-Workers, 10 Ways COVID-19 Impacted Singapore Workers: MOM Labour Force In Singapore Advance Release 2020, Financial Benefits For SMEs To Take A Green and Sustainability-Linked Loan, 4 Types Of Companies Most Affected By The Latest Changes To Employment Pass & S Pass Rules, Government Bonds, REITs… And The Search For Yield. [Source: Wikipedia]. “Ho began her career at the Ministry of Defense, where she met her husband, Lee Hsien Loong, the eldest son of former Prime Minister Lee Kuan Yew. Temasek wasn't informed of the merger talks between Merrill and Bank of America and "never wanted to be a Bank of America investor," a person familiar with the situation said. Over the last 20 years, and notwithstanding this year’s $24 billion decrease in value, Temasek declares that it has delivered a 20-year annualized return of 6%. In total, they lost $117 billion. Analaysts say Temasek Holdings surely had its eyes wide open to the risks of buying into a diversified behemoth like Thailand's Shin Corp, but they are divided over what it saw in the conglomerate's core telecoms business that warranted a 73.3 billion baht (S$3.1 billion) price tag. In 2013, Temasek Holdings setup a new company Pavilion Energy Pte. While Lee took up a variety of cabinet positions, Ho moved to state-owned Singapore Technologies in 1987, running a mix of defense, technology, property and stock brokerages that she restructured, divesting some units and listing others. GIC and Temasek have made money over the long-term. +, In September 2008, GIC said in its first ever annual performance report said it achieved a real return of 4.5 percent and an average annual nominal return of 7.8 percent in U.S. dollar terms in the 20-year period that ended March 2008. The move gave Temasek stakes in three of China's top four banks and showed it was serious about China. "[There was] little potential in Bank of America shares. [Source: Wikipedia +], Traditionally, GIC has kept a low profile in its investments, for a long time saying only it managed assets of “more than $100 billion. ^|^, The funds managed by GIC are owned by the Singapore Government. GIC had acknowledged that the timing for the investment could have been better. The downside to our SWFs, besides not being flushed with cash, is that Singaporeans, even after looking through websites and reports, still mostly have no idea what Temasek Holdings and GIC do with the country’s money. The shares traded at about a fifth of the conversion price at the close on Sept. 23, though the 8.7 billion franc unrealized loss is partly offset by 2 billion francs in interest payments in the first two years of its investment. In May 2009, amidst the Subprime mortgage crisis, Singapore's finance minister defended Temasek's performance in parliament, as the wealth fund has made S$56 billion (US$38.5 billion) in the current market cycle that began around March 2003. The sale ends the Shinawatra family's association with Shin, the sprawling telecoms-based conglomerate founded by Mr Thaksin and his wife Pojamarn Damapong 22 years ago. ^+^, “We see contagion risks from Europe as potentially significant,” Chia Song Hwee, Temasek’s head of strategy and credit portfolio, and co-head of portfolio management, China and Singapore, said in a briefing yesterday. The financial crisis blind-sided a lot of investors.”/^/, According to Bloomberg” Along with its stake in Merrill Lynch, Temasek also raised holdings in Standard Chartered, the London-based bank that gets almost all its profit from emerging markets, and bought shares in Barclays, the U.K.’s third-biggest bank. Temasek is a forward looking institution. GIC manages risk by investing in a well-diversified portfolio, with a balanced distribution of asset classes and their underlying business sectors and geographies. Standard & Poor's assigned Temasek Holdings a AAA credit rating for "the best companies". The huge loss attracted unusual public criticism in Singapore. Learn more about each company and apply to jobs near you. A Temasek spokesman was unwilling to reveal her age or date of birth, although a Temasek bond document in 2005 said she was 52. But as one of my mentors instructed me, if you do not make mistakes, you are not trying and will never succeed. Shareholder equity has nearly doubled since 2002, to about $90 billion. And as such, most people sit quietly when things are looking good, and complain when they lose value at their year ends. [Source: Chen Shiyin, Bloomberg, May 15, 2009 /^/], Costas Paris wrote in the Wall Street Journal, “According to people familiar with the situation, Temasek sold the Bank of America shares for an average $7 a share, netting $1.3 billion, but losing an estimated $4.6 billion on the investment.Temasek made some high-profile investments in the past two years, including in Merrill Lynch and in Barclays PLC, in which it increased its stake in June 2008 to a little over 2 percent paying about $399 million. [Source: Reuters, September 23, 2008], Starting 2011, GIC also published the 5-year and 10-year nominal rates of return to provide a sense of the on-going medium-term investment performance, even while GIC maintains its sights on the long term. Temasek, on the other hand, is a development fund that invests in homegrown companies to stimulate the local … Anger was also directed at Singapore. It’s an instant deal breaker, that one. The SWFs of China or Norway may serve entirely different purposes to Singapore’s. GIC and Temasek are under pressure to seek fresh earnings to fill state coffers. March 4, 2013, Temasek increased its share holdings in Repsol to 6.3 percent. “The value of Temasek's investment portfolio fell 31 percent, or by 58 billion Singapore dollars (US$39.61 billion), to S$127 billion in the eight-month period ended Nov. 30, Singapore's Senior Minister of State for Finance Lim Hwee Hua said earlier this year. Its investment portfolio is managed by its three subsidiaries: GIC Asset Management Pte Ltd (public markets), GIC Real Estate Pte Ltd and GIC Special Investments Pte Ltd (private-equity investments). Think you’d do a better job managing your money? May have raised about $ 500 million of unrealized losses on its Citigroup Inc. ( C ) stake, to. D, health care and physical environment China Construction Bank and Standard Chartered a safety net for the year. 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