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Jul 17, 2010
Sharing excess gains: Temasek replies
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WE THANK Mr Imran Ahmed for his proposal yesterday ('Find ways to let S'poreans reap Temasek's excess gains').
Temasek invests for the long term, by focusing on value creation and growth. Far from managing a 'mature' portfolio, we have been actively reshaping our portfolio to increase our exposure to various growth economies in Asia and elsewhere.
As a result, excluding Singapore and Japan, our underlying exposure to Asia is nearly half of our $186 billion portfolio compared to less than one-fifth of a much smaller portfolio six years ago. Post-2002 investments constitute just over half of our portfolio today.
There are inherent investment risks. Our portfolio value fell as equity markets plunged the year before, and rebounded $56 billion as markets recovered and our continued investments paid off. Although markets are calmer, there remains a one-in-six risk of losing 14 per cent or more of our portfolio value during this financial year.
We recognise there may be some interest to co-invest with Temasek. We are exploring such possibilities, particularly for co-investors who have a long-term investment horizon and the ability to tolerate the volatility. We will share these ideas when we are ready.
As for sharing returns with the wider community, Temasek has committed more than $1 billion since inception to community, philanthropic and public good causes.
We have, since 2003, formalised our commitment to set aside a share of our returns for community contributions whenever we deliver returns above our risk-adjusted hurdles.
Our most recent contributions were three philanthropic endowments for Singaporeans totalling $170 million last year, with
$70 million specifically for supporting health-care and special needs programmes in Singapore.
Myrna Thomas (Ms)
Managing Director
Corporate Affairs
Temasek Holdings
Sharing excess gains: Temasek replies
<!-- by line --><!-- end by line -->
<!-- end left side bar --><!-- story content : start -->
WE THANK Mr Imran Ahmed for his proposal yesterday ('Find ways to let S'poreans reap Temasek's excess gains').
Temasek invests for the long term, by focusing on value creation and growth. Far from managing a 'mature' portfolio, we have been actively reshaping our portfolio to increase our exposure to various growth economies in Asia and elsewhere.
As a result, excluding Singapore and Japan, our underlying exposure to Asia is nearly half of our $186 billion portfolio compared to less than one-fifth of a much smaller portfolio six years ago. Post-2002 investments constitute just over half of our portfolio today.
There are inherent investment risks. Our portfolio value fell as equity markets plunged the year before, and rebounded $56 billion as markets recovered and our continued investments paid off. Although markets are calmer, there remains a one-in-six risk of losing 14 per cent or more of our portfolio value during this financial year.
We recognise there may be some interest to co-invest with Temasek. We are exploring such possibilities, particularly for co-investors who have a long-term investment horizon and the ability to tolerate the volatility. We will share these ideas when we are ready.
As for sharing returns with the wider community, Temasek has committed more than $1 billion since inception to community, philanthropic and public good causes.
We have, since 2003, formalised our commitment to set aside a share of our returns for community contributions whenever we deliver returns above our risk-adjusted hurdles.
Our most recent contributions were three philanthropic endowments for Singaporeans totalling $170 million last year, with
$70 million specifically for supporting health-care and special needs programmes in Singapore.
Myrna Thomas (Ms)
Managing Director
Corporate Affairs
Temasek Holdings
