Established in 1974, Temasek Holdings is an Asia
investment firm headquartered in Singapore. Its mission
is to create and maximise long-term shareholder value
as an active investor and shareholder of successful enterprises.
Temasek manages a diversified global portfolio of S$185
billion (US$134 billion), as at 31 March 2008, across
Singapore, Asia and the OECD economies. It has a corporate
credit rating of AAA/Aaa by Standard & Poor's and
Moody's respectively.
Its investments cover various industry sectors: Banking
& financial services, real estate, transportation
& logistics, infrastructure, telecommunications
& media, bioscience & healthcare, education,
consumer & lifestyle, energy & resources, engineering
as well as technology.
Examples of Singapore-based companies in its portfolio
are DBS Group Holdings, Neptune Orient Lines, Singapore
Airlines and Singapore Telecommunications. Investments
outside Singapore include blue chips such as Bank of
China, Barclays PLC, Bharti Airtel, Merrill Lynch, PT
Bank Danamon and Standard Chartered Bank.
Investment approach
Governed by the Singapore Companies Act, and
also designated a Fifth Schedule entity1 under the Singapore
Constitution in 1991, Temasek is an autonomously managed
and professional investment house guided by an independent
board.
Its investment strategy centres around four
themes:
• Transforming Economies
• Growing Middle Class
• Deepening Comparative Advantages
• Emerging Champions
Long-term returns
Temasek continues to seek new investments that will
optimise long-term value within its risk-reward framework.
It has a flexible investment horizon and the option
of taking concentrated positions. Temasek remains open
at all times to increasing, holding or reducing its
stakes in its portfolio, through buying, selling, swapping,
restructuring or rationalisation. It also keeps its
options open for more efficient utilisation of capital.
Enhancing shareholder value
Temasek has delivered a Total Shareholder Return (TSR)
by market value of 18% compounded annually over the
last 34 years. In terms of shareholder funds, which
measures growth compounded annually due to the underlying
profitability of portfolio companies and realised returns
from investment activities, TSR is more than 17% since
inception.
An active shareholder
As an active shareholder, Temasek encourages a culture
of excellence and meritocracy, business leadership and
sound governance in its portfolio companies. These form
the foundation for developing people and building outstanding
and lasting businesses.
Temasek’s portfolio companies are run by their respective
management teams and supervised by their boards of directors.
Temasek does not involve itself in their business or operational
decisions, except to exercise its shareholder rights where
shareholder approval is required.
Building a shared future
Temasek recognises that social, environmental and governance
factors can impact the larger community as well as the
long-term sustainability of companies and businesses.
Thus, it is committed to support efforts to build people
and communities through various community development
initiatives.
The firm has committed almost S$1 billion towards research
institutions, scholarship and other pro bono programmes,
and other institutes of public character over the last
10 years, with S$500 million donated to the Temasek
Trust in May 2007 as an endowment to support community
development on a sustainable basis.
For more information, please visit www.temasek.com.sg
Footnote:
1Under the Singapore Constitution,
the concurrence of the elected President of Singapore
is required over certain governance matters concerning
Fifth Schedule entities. These include the appointment
and removal of board members and the CEO, and the drawdown
of past reserves built up by the entity before the term
of the current Government. Other Fifth Schedule entities
include the Central Provident Fund Board, Government
of Singapore Investment Corporation Pte Ltd, and the
Monetary Authority of Singapore.
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