And voila, the company does not belong to Spore anymore!
<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published August 26, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Updated charter underscores Temasek's makeover
Investment company emphasises its commercial nature and downplays its state links; chairman Dhanabalan says new text reflects changes since 2002
By CONRAD TAN
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</TD><TD>Feedback</TD></TR></TBODY></TABLE>(SINGAPORE) Temasek Holdings has removed all direct references to Singapore and the government in its updated charter - a move seen as part of its ongoing efforts to bolster its credentials as an investment firm driven solely by commercial interests.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Staying the course: Ms Ho (above, with Mr Dhanabalan) said yesterday that 'there's no change' in Temasek Holdings' strategy as an investor </TD></TR></TBODY></TABLE>The first two lines of the original charter published in July 2002 read: 'Temasek Holdings holds and manages the Singapore Government's investments in companies, for the long-term benefit of Singapore.
'By nurturing successful and vibrant international businesses from its stable of companies, Temasek will help to broaden and deepen Singapore's economic base.'
The updated charter, published yesterday, describes Temasek as 'an investment company managed on commercial principles to create and deliver sustainable long-term value for our stakeholders'.
There is no mention of either Singapore or the government - which owns Temasek through the Minister for Finance (Incorporated), the legal shareholder of Temasek - in the one-page charter. But a background note accompanying the charter explains the relationship between Temasek and its various stakeholders, including the government and the President, which is also described in Temasek's 2008 annual report.
'It's an effort to emphasise their commercial objectives,' said David Cohen, director of Asian economic forecasting at Action Economics. 'Countries are increasingly sensitive to the political links of government-affiliated investment companies.'
The explicit mention of Singapore's interests in the original version of the charter could hamper access to investment opportunities in countries that are particularly sensitive to its government ties, Mr Cohen said.
The text of the updated charter reflects the 'very different world' that Temasek now faces compared with 2002, Temasek chairman S Dhanabalan said at a news conference yesterday.
But he stressed that the updated language of the charter does not mean 'that we're going to go in a completely new direction'.
Indeed, chief executive Ho Ching said 'there's no change' in Temasek's strategy as an investor.
And Mr Dhanabalan said: 'The 2002 charter set out our interest to nurture successful international or regional companies as the core strength of our portfolio.'
Seven years on, both Temasek and its portfolio companies have grown well beyond Singapore to span much of the world.
'The first charter was produced at a time when there was a lot of discussion and controversy about whether the government and Temasek should be involved in business at all,' Mr Dhanabalan said. 'In that context, there was a need to clarify what was very important for the government to hold, and what may not be necessary for the government to hold.'
Today, 'it's quite clear from the way that our companies have expanded overseas, built up overseas networks, as well as expanded their businesses, that we're not talking about how to compete in Singapore', he added. 'All of our companies are competing globally.'
Also, 'the issue of whether the government or Temasek should own companies in Singapore is no longer one that arouses much discussion', he said. 'We're in a different environment.'
A new addition to the charter is a line that says Temasek 'is committed to contributing part of its returns to encourage the growth and development of the wider community'.
Ms Ho said Temasek has also been exploring new fundraising vehicles that could eventually be opened to co-investments from Singapore retail investors.
In the third quarter of 2006, Temasek securitised its investments in 46 private equity funds through a special-purpose vehicle, Astrea, in London. Astrea bought Temasek's interests in the funds, then sold some US$810 million in equity and 15-year, floating- rate debt securities to sophisticated investors including financial institutions. The product was 'well received', Ms Ho said.
'This was our way of testing market interest,' she added. 'We'd be interested to explore in future doing similar products and perhaps open that to retail investors.
'Eventually we would like to do something in Singapore.'
But she stressed that 'this is not something that we are in a hurry to do, this year or next year'.
As an example, 'we see a lot of opportunities in infrastructure in Asia', she said. 'That can be married to business trusts, and that's a product for both sophisticated investors as well as retail investors over the long run. Those are some of the things that we are looking at in a 3-5-year time frame.'
Temasek is also open to the possibility of listing Fullerton Financial Holdings, a subsidiary which invests in emerging-market banks, or Fullerton Fund Management, Temasek's fund-management arm, she said. 'We are completely flexible.
'If it's the next one year, then the answer is no. Within the next 10 years, then I'd say it's possible.'
</TD></TR></TBODY></TABLE>
<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published August 26, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Updated charter underscores Temasek's makeover
Investment company emphasises its commercial nature and downplays its state links; chairman Dhanabalan says new text reflects changes since 2002
By CONRAD TAN
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Feedback</TD></TR></TBODY></TABLE>(SINGAPORE) Temasek Holdings has removed all direct references to Singapore and the government in its updated charter - a move seen as part of its ongoing efforts to bolster its credentials as an investment firm driven solely by commercial interests.<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Staying the course: Ms Ho (above, with Mr Dhanabalan) said yesterday that 'there's no change' in Temasek Holdings' strategy as an investor </TD></TR></TBODY></TABLE>The first two lines of the original charter published in July 2002 read: 'Temasek Holdings holds and manages the Singapore Government's investments in companies, for the long-term benefit of Singapore.'By nurturing successful and vibrant international businesses from its stable of companies, Temasek will help to broaden and deepen Singapore's economic base.'
The updated charter, published yesterday, describes Temasek as 'an investment company managed on commercial principles to create and deliver sustainable long-term value for our stakeholders'.
There is no mention of either Singapore or the government - which owns Temasek through the Minister for Finance (Incorporated), the legal shareholder of Temasek - in the one-page charter. But a background note accompanying the charter explains the relationship between Temasek and its various stakeholders, including the government and the President, which is also described in Temasek's 2008 annual report.
'It's an effort to emphasise their commercial objectives,' said David Cohen, director of Asian economic forecasting at Action Economics. 'Countries are increasingly sensitive to the political links of government-affiliated investment companies.'
The explicit mention of Singapore's interests in the original version of the charter could hamper access to investment opportunities in countries that are particularly sensitive to its government ties, Mr Cohen said.
The text of the updated charter reflects the 'very different world' that Temasek now faces compared with 2002, Temasek chairman S Dhanabalan said at a news conference yesterday.
But he stressed that the updated language of the charter does not mean 'that we're going to go in a completely new direction'.
Indeed, chief executive Ho Ching said 'there's no change' in Temasek's strategy as an investor.
And Mr Dhanabalan said: 'The 2002 charter set out our interest to nurture successful international or regional companies as the core strength of our portfolio.'
Seven years on, both Temasek and its portfolio companies have grown well beyond Singapore to span much of the world.
'The first charter was produced at a time when there was a lot of discussion and controversy about whether the government and Temasek should be involved in business at all,' Mr Dhanabalan said. 'In that context, there was a need to clarify what was very important for the government to hold, and what may not be necessary for the government to hold.'
Today, 'it's quite clear from the way that our companies have expanded overseas, built up overseas networks, as well as expanded their businesses, that we're not talking about how to compete in Singapore', he added. 'All of our companies are competing globally.'
Also, 'the issue of whether the government or Temasek should own companies in Singapore is no longer one that arouses much discussion', he said. 'We're in a different environment.'
A new addition to the charter is a line that says Temasek 'is committed to contributing part of its returns to encourage the growth and development of the wider community'.
Ms Ho said Temasek has also been exploring new fundraising vehicles that could eventually be opened to co-investments from Singapore retail investors.
In the third quarter of 2006, Temasek securitised its investments in 46 private equity funds through a special-purpose vehicle, Astrea, in London. Astrea bought Temasek's interests in the funds, then sold some US$810 million in equity and 15-year, floating- rate debt securities to sophisticated investors including financial institutions. The product was 'well received', Ms Ho said.
'This was our way of testing market interest,' she added. 'We'd be interested to explore in future doing similar products and perhaps open that to retail investors.
'Eventually we would like to do something in Singapore.'
But she stressed that 'this is not something that we are in a hurry to do, this year or next year'.
As an example, 'we see a lot of opportunities in infrastructure in Asia', she said. 'That can be married to business trusts, and that's a product for both sophisticated investors as well as retail investors over the long run. Those are some of the things that we are looking at in a 3-5-year time frame.'
Temasek is also open to the possibility of listing Fullerton Financial Holdings, a subsidiary which invests in emerging-market banks, or Fullerton Fund Management, Temasek's fund-management arm, she said. 'We are completely flexible.
'If it's the next one year, then the answer is no. Within the next 10 years, then I'd say it's possible.'
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