Temasek Holdings (“Temasek”) was previously seen as a secretive sovereign wealth fund that had little transparency. They have been making efforts since to allow their stakeholders – Singaporeans – to understand their investment strategies and more importantly, how much they are earning.
Temasek recently released their performance report last week. We took a quick glance at it and share some of the facts that we learn about them.
1. The Total Shareholder Return is a whooping 43,932% Over 41 years
Your eyes are not playing tricks on you. Temasek has reported a 16% annual total shareholder return over the past 41 years. Based on a compounded basis, that would give us a return of about 43,932%.
In other words, for every $1,000 the Government of Singapore invested into Temasek in 1974, it will be worth $439,320 today.
2. A Big Fan of Entrepreneurship
Entrepreneurs would be familiar with venture capital powerhouses like Monk’s Hill Venture, NSI Ventures, Heliconia Capital and Vertex Venture. These are all venture capital funds that have links to Temasek in some ways.
Temasek has injected capital into Vertex Venture, which commands a committed capital of US$1.2 billion.
Temasek intends to play an enabler role across all stages of an enterprise. This should be good news for entrepreneurs in Singapore.
3. Board of Directors is Made Mostly Out of Successful Individuals
Contrary to popular belief, the board of directors at Temasek is not made up entirely by politicians.
Exhibit 1: Selected Board of Directors at Temasek
| BOARD OF DIRECTORS | ||
| Name | Position | Industry |
| Cheng Wai Keung | Deputy Chairman | Consumer |
| Goh Yew Lin | Director | Finance |
| Kua Hong Pak | Director | Transport |
| Michael Lien | Director | Finance |
| Marcus Wallenberg | Director | Finance & Technology |
| Robert Ng | Director | Real Estate |
| Lucian Wong | Director | Law |
| Teo Ming Kian | Director | Media & Finance |
| Robert B Zoellick | Director | Banking |
| Peter R Voser | Director | Technology |
Source: Temasek Review 20015
Of the thirteen directors and chairmen, ten are made out of successful businessmen and professionals. The three others are Lim Boon Heng, Bobby Chin and Ho Ching.
Lim Boon Heng held cabinet positions in the Singapore Government from 1993 to 2011. Booby Chin is a current member in the Council of Presidential Advisors. Ho Ching previously held positions in the Ministry of Defense and is more commonly known as our Prime Minister’s wife.
4. Temasek Hires Only 529 People Directly
With a total asset size of SG$405.8 billion, Temasek only hires 529 people globally as at 31st March 2015.
At a consolidated level, their overhead cost of maintaining their staff strength should be relatively low, compared to other sovereign wealth funds.
5. Temasek is a Believer of the Asian Growth Story
70% of Temasek’s exposures are in Asia. Living up to Singapore’s name of being a financial hub, Temasek is also highly exposed to the Financial Services sector, which comprises of 28% of its total portfolio.
Exhibit 2: Temasek’s Global Exposure Portfolio
Source: Temasek Review 2015
6. Many Familiar Brands are Owned by Temasek
While living in Singapore, there are a few brand names that we can never escape from. DBS, SingTel, MediaCorp, SIA, Watsons are just some common household names that are under Temasek’s portfolio. And yes, so is SMRT.
Exhibit 3: Major Investments of Temasek (Not Complete)
| MAJOR INVESTMENT | ||
| Industry | Organization | Shareholding |
| Financial Services | DBS Group Holdings | 29% |
| PT Bank Danamon | 67% | |
| Standard Chartered | 18% | |
| Telecommunication, Media & Technology | Intouch Holdings | 42% |
| ST Telemedia | 100% | |
| STATS ChipPAC | 84% | |
| MediaCorp | 100% | |
| SingTel | 51% | |
| Transport & Industrials | Keppel Corp | 20% |
| Neptune Orient Line | 65% | |
| PSA International | 100% | |
| Sembcorp Industries | 49% | |
| ST Engineering | 51% | |
| Singapore Airlines | 56% | |
| Singapore Power | 100% | |
| SMRT Corp | 54% | |
| Consumer | Olam International | 58% |
| A.S. Watson Holdings | 25% | |
| SATS | 43% | |
| Real Estate | CapitaLand | 39% |
| M+S | 40% | |
| Pulau Indah Ventures | 50% | |
| Mapletree Investments | 100% | |
| Wildlife Reserves S’pore | 88% | |
| Energy & Resources | FTS International | 41% |
| Pavilion Energy | 100% | |
Source: Temasek Review 2015
As a sovereign wealth fund, the aim of Temasek is to safeguard Singapore’s past reserves and use its resources to propel Singapore forward.
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Photo From Benjamin Lim
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