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6 Things That We Know About Temasek Holdings From Their Latest Results

Looks really good.

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

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

Exhibit 2

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)

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%
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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