Sovereign Wealth Fund Institute

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According to the press release, “Temasek Holdings (Private) Limited (“Temasek”) is pleased to confirm the following changes in its leadership team.  Mr Hsieh Fu Hua has joined Temasek as Executive Director and President with effect from 1 August 2010, and Mr Dilhan Pillay Sandrasegara will join Temasek as Head, Portfolio Management with effect from 1 September 2010.  Currently Executive Director, Mr Simon Israel will assume the role of Executive Director and President, while Mr Gregory Curl will join Temasek as President. Both appointments will take effect from 1 September 2010. Hsieh Fu Hua, Simon Israel and Greg Curl will work in close partnership with Temasek CEO Ho Ching to support the Temasek senior leadership team to build a sustainable institution that creates and delivers long term shareholder value.

Hsieh Fu Hua, 60, oversees Temasek’s institutional and capacity building initiatives, including the company’s platform for leadership and talent development, as well as risk management.

Simon Israel, 57, provides leadership in building and enhancing value creation in Temasek’s Singapore investments, as well as oversees its engagement with Australia and New Zealand markets, in his concurrent role as Head Singapore and Head Australia/New Zealand.

Greg Curl, 62, will oversee Temasek’s interests in financial services, and support its strategic engagement in the Americas. Greg retired from Bank of America in March this year, where he was credited to be “a principal architect of one of the world’s premier financial services franchises”, and brings with him 34 years of banking and international M&A experience.

In addition to his role as Head of Portfolio Management, Dilhan Pillay, 47, will also take on the role of co-Head Singapore to support Simon Israel along with the senior leadership team.

Ms Ho Ching, Executive Director & CEO of Temasek Holdings said, “I have been very privileged to have the opportunity to work with a highly committed and driven team with diverse backgrounds, experience and capabilities. Along with Simon and other members of our senior team, Fu Hua, Greg and Dilhan will add tremendous depth to our bench strength, as we continue to forge a partnership culture with an ownership mindset, and further hone our capabilities as an investment house.””

Read more: Temasek Holdings

According to a press release, “Temasek Life Science Ventures Pte Ltd (TLV) and Emergent BioSolutions Inc. today announced their agreement to form EPIC BIO Pte Ltd, a joint venture to develop, manufacture, and commercialize a multivalent, cross-protective human vaccine to protect against influenza caused by a broad range of circulating H5 influenza strains. The broad spectrum pandemic flu vaccine is expected to be based on multiple antigens held by TLV and to be delivered as a single vaccine using Emergent’s MVAtor^TM vaccine delivery platform. Completion of this joint venture is expected in the next few weeks.”

Read more: Emergent Biosolutions Press Press Release

We have all witnessed the trend of some sovereign wealth funds raising private capital or creating sovereign wealth enterprises to act as an investment manager for private funds.  This article is to bring some clarity on why a number of funds are doing this.  With Mubadala raising $1.85 billion in medium term notes, Temasek Holdings multiple debt raises in denominated in multiple currencies, and Mumtalakat Holdings bond offering, it shows that SWFs are using their assets, not just their cash as an investment.

First off, most SWFs that are raising capital are the types of sovereign wealth funds that take large stakes in companies.  In addition, SWFs that hold large portions of their domestic industry would be the type of funds to engage in this behavior.  We most likely would not see the Abu Dhabi Investment Authority or the Norwegian GPFG raise capital or take on bank loans.  In some instances, SWFs experience shrinkage of money flows from their respective government; money in the private markets backed by SWF assets can increase their stability and investment performance.[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

According to Reuters, “Singapore state investor Temasek Holdings is selling 700 million pounds ($1.1 billion) worth of bonds to diversify its funding sources as it makes its foray into the sterling-denominated debt market.

Temasek will issue 200 million pounds of 12-year debt at 97 to 100 basis points above gilts and 500 million pounds of 30 year at 92 to 95 basis points above gilts, according to a term sheet seen by Reuters.

“Neither size will change,” according to the term sheet that was distributed to potential investors.

The Temasek bonds, rated AAA by both Moody’s and Standard & Poor’s, will be priced before the end of London trading, said a source briefed on the issue.

Sources with knowledge of the deal said the Temasek fundraising was not linked to any investment in BP Plc or another British firm.”"

Read more: Reuters

According to the press release, “Temasek Holdings (Private) Limited (Temasek) today released its annual performance report and institutional review, Temasek Report 2010 – Making a Difference, for financial year ended 31 March 2010. Temasek Report 2010 sets out highlights of the firm’s portfolio returns and investments, its consolidated group financial summary and institutional framework as well as its engagement with stakeholders, including the wider community.

Delivering Long Term Returns

The market value of Temasek’s portfolio as at 31 March 2010 rebounded to a new financial year-end high of S$186 billion. This is an increase of S$56 billion from a year earlier, with a Total Shareholder Return of over 42% for the year.

The book value of the Temasek portfolio increased to S$150 billion, up from S$50 billion 10 years ago, underpinned by the secular growth of its portfolio companies and Temasek’s own investment activities.

Total Shareholder Return (TSR), measuring returns on an annually compounded basis since inception, was 17% by market value, and 16% by shareholder funds. Both 20-year and 30-year TSRs held steady at a creditable 16% by market value and 14% by shareholder funds.

Medium-term five-year TSR was relatively robust at 11% by market value and 14% by shareholder funds, while 10-year TSR compounded annually from the peak of the dotcom bubble, was 6% by market value and 12% by shareholder funds.

Also known as Wealth Added or Economic Profit, total portfolio returns to the shareholder, net of a risk-adjusted hurdle, was S$42 billion for the year, while group net profit was S$5 billion, with lower profit contributions from some of the portfolio companies which were impacted by the global financial crisis.

Temasek closed the financial year on 31 March 2010 with a comfortable net cash position.

Mr S Dhanabalan, Chairman of Temasek Holdings said, “Since inception, Temasek has been committed to create and deliver sustainable value as an active investor and shareholder of successful enterprises.”

“Our portfolio has delivered consistently through market cycles. Long-term TSR by market value held steady at 17% since inception, while both 20- and 30-year TSRs were 16%.””

Read more: Temasek Press Release

According to the AFP, “Agricultural Bank of China on Tuesday confirmed plans to raise a world-record 23.2 billion dollars in a dual initial public offering in Hong Kong and Shanghai.  The last of China’s “big four” state banks to list said it would raise the money if the monster IPO is fully subscribed when it begins on Wednesday.

Major institutional investors including sovereign wealth funds have already expressed strong interest in the IPO, which is on course to surpass the previous record of 22 billion dollars set in 2006 by Industrial and Commercial Bank of China (ICBC).  AgBank said Tuesday that it planned to raise 13.1 billion US dollars from its Hong Kong IPO, with a price range of 2.88-3.48 Hong Kong dollars (37-44 US cents) a share. Xiang Junbo, chairman of AgBank, said government efforts to boost growth in China’s depressed central and western regions would help the rural lender.

“The county area business will be one of our key profit drivers,” he told a press conference in Hong Kong on Tuesday. “(AgBank) is well positioned to capitalise on China’s next wave of growth.”

The bank, which has been criticised for the amount of bad loans on its books, has worked in recent years to chop that figure, Xiang said.

Agbank’s prospectus said its bad debt ratio dropped from 4.32 percent in 2008 to 2.91 percent in 2009.

“The bank has made substantial improvement in the last few years,” Xiang said, referring to its credit review procedures.

The newly released prospectus said AgBank booked a profit of 65 billion yuan (9.56 billion US dollars) in 2009, up from 51.45 billion yuan in 2008. It is forecasting a 2010 profit of 82.9 billion yuan. Xiang also said a stronger yuan — demanded by the United States and other trading nations which claim they have been hurt by an unfairly cheap Chinese currency — could be “positive” for AgBank.”

Read more: AFP

According to the AFP, “Agricultural Bank of China’s initial public offering, set to be the world’s largest, has drawn 11 heavyweight investors who have stumped up 5.45 billion US dollars for the sale, a report said Thursday.

Shares in the company’s Hong Kong listing will be set between 2.88 and 3.48 Hong Kong dollars (37 and 44 US cents) ahead of their trading debut next month, Dow Jones Newswires said, citing a company prospectus.

A price range has not been revealed for the Shanghai portion of the listing.

The details came as AgBank — the last of China’s big four lenders to list its shares — kicked off an investor roadshow to drum up support for a sale that could draw almost 25 billion US dollars.

That would surpass the Industrial and Commercial Bank of China’s 22-billion-dollar IPO in 2006, which is currently the world’s biggest.

Gulf state investment funds Qatar Investment Authority and the Kuwait Investment Authority, US food giant Archer Daniels Midland, Australia’s media-to-heavy-equipment firm Seven Group Holdings, British Bank Standard Chartered and Dutch financial-services firm Rabobank are among the cornerstone investors, Dow Jones said.

The sale’s other major investors are: Singapore state investment company Temasek Holdings, United Overseas Bank, Hong Kong billionaire Li Ka-shing’s Cheung Kong (Holdings), tourism monopoly China Travel Services Group and state-run consumer group China Resources (Holdings).”

Source: AFP

According to Reuters, “Singapore’s state investment fund Temasek plans to invest up to $300 million in the Agricultural Bank of China, ahead of its roughly $20 billion IPO, a source with direct knowledge of the matter said on Saturday. Temasek’s commitment to China’s third largest bank is a positive step for the offering, though it is less than the $1 billion that AgBank’s underwriters are hoping to get from Middle East and Asian sovereign wealth fund cornerstone investors.

So-called cornerstone investors are a key layer of financial backing for an IPO. AgBank’s Shanghai-Hong Kong listing will be the world’s largest ever IPO if it exceeds $21.9 billion. Temasek declined to comment. AgBank could not immediately be reached. The source was not authorized to speak on the record about the deal.

Reuters earlier reported that Temasek, and sovereign funds from Kuwait and Qatar were expected to sign on to AgBank’s offering.

The Beijing-based bank, founded in 1951 by Mao Zedong as the rural unit of the central bank, is still known a customer base spread across China’s far-flung parts, though it does a have a major presence of most of the country’s major cities.”

Read more: Reuters

Central Huijin, part of the China Investment Corporation has a large stake in the Agricultural Bank of China.

Learn more about past direct SWF transactions: Sovereign Wealth Fund Transaction Database (SWFTD).

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According to the Inmet Mining Press Release, “Inmet Mining Corporation (“Inmet”) announced today that it has closed its previously announced private placement of $500 million of subscription receipts to Ellington Investments Pte. Ltd. (“Ellington”), an indirect wholly-owned subsidiary of Temasek Holdings (Private) Limited.

On closing, Ellington purchased 9,258,419 subscription receipts at a price of $54.0049 each for total proceeds to Inmet of $500 million. These proceeds will be held in escrow by CIBC Mellon Trust Company, as subscription receipt agent, and invested pending exchange of the subscription receipts for Inmet common shares as described below. On completion of the exchange, the proceeds will be used by Inmet for the development of its Cobre Panama project and for general corporate purposes.”

read more: Inmet Mining Press Release

According to the Press Release, “Platmin Limited  announced today that each of Temasek Holdings (Private) Limited (“Temasek”) and Algemene Pensioen Groep N.V. (“APG”) has expressed an intention to purchase US$50 million of new common shares in the US$250 million market offering launched on 16 April 2010.

Temasek is an Asian investment company headquartered in Singapore. With an international staff of 350 people, supported by 12 affiliates and offices in Asia and Latin America, Temasek owns a diversified S$172 billion (US$119 billion) portfolio as of 31 July 2009, concentrated principally in Singapore, Asia and the emerging economies. It is an active shareholder and investor in such sectors as banking & financial services, real estate, transportation and logistics, infrastructure, telecommunications & media, bioscience & healthcare, education, consumer & lifestyle, engineering & technology, as well as energy & resources. “

read more: Platmin Press Release

According to BusinessWeek, “Temasek Holdings Pte Ltd., the Singapore state investment company, is seeking stakes in Indian power producers including GMR Group as they double capacity to meet demand in the world’s second-fastest growing major economy.

“We are in advanced discussions with GMR,” Wong Kim Yin, managing director for energy investments at Temasek, told reporters at a power conference in Singapore today. “We are trying to get exposure to the domestic India markets.”

Temasek manager of about S$172 billion ($123 billion) of assets, is betting utilities will ramp up generation in the next seven years to overcome power shortages that India’s government says are constraining economic growth. The 17-member Bombay Stock Exchange Power Index has climbed 62 percent in a year, lagging behind the 70 percent gain in the main Sensitive Index.

“Temasek is probably entering at the right time as the sector and the company have a lot to offer in the short term,” said Abhineet Anand, a Mumbai-based analyst with Antique Stock Broking Ltd. He recommends investors buy shares of GMR Infrastructure Ltd., a unit of GMR Group, with a one-year price target of 82 rupees.”

read more: BusinessWeek

According to the Amyris Press Release, “Amyris Biotechnologies, Inc. announced today that Temasek Holdings has invested $47.8 million into the company. Amyris intends to use these funds to support commercial plant design and construction activities as well as ongoing operations in the U.S. and Brazil.

“We are privileged to welcome Temasek as a significant investor, and appreciate having them join us as we look to commercialize and scale our renewable fuels and chemicals,” said John Melo, chief executive officer of Amyris.

Amyris has secured $244 million in private funding since inception in 2003, including funding directly into Amyris Biotechnologies and into its subsidiary, Amyris Brasil S.A. Other Amyris investors include Kleiner Perkins Caufield & Byers, Khosla Ventures, TPG Biotechnology, Votorantim Novos Negocios, Advanced Equities Inc., DAG Ventures, Grupo Cornélio Brennand, Naxos U.K., The Westly Group, and Stratus Group.”

read more: Amyris

According to Bloomberg, “Temasek Holdings Pte, Singapore’s government-owned investment company, hired Deutsche Bank AG, Goldman Sachs Group Inc. and Morgan Stanley to help it sell 10-year bonds in U.S. dollars.

The sale will be benchmark, Temasek said in a stock market filing today, without being more specific about the size. Benchmark typically means at least $500 million.

‘We’re not expecting any major acquisitions but obviously that’s what this company is all about,’ Standard & Poor’s credit analyst Manuel Guerena said in a phone interview from Singapore. ‘These bonds will help extend Temasek’s debt maturity profile, and I guess it’s a bit of a signal to the market that the volatility in equity markets over the past year or so hasn’t affected Temasek’s financial rating.’”

read more: Bloomberg

According to the Press Release, “Olam International Limited (“Olam” or the “Company”), a leading global, integrated supply chain manager of agricultural products and food ingredients, today announced that after the successful launch of Convertible Bonds to raise US$400 million on 2 September 2009, it has increased the issue size of its recently launched 6.00 per cent. convertible bonds due 2016 by an additional US$100 million, bringing the total issue size to US$500 million.

Olam had previously granted the Joint Lead Managers an upsize option for the issue of up to an additional US$100 million in principal amount of convertible bonds (“Upsize Option”).

The Joint Lead Managers have today exercised the option for the full US$100 million. The exercise of the Upsize Option will provide Olam with additional funds to realize the Company’s recently announced six year strategy, and further term out its debt profile. The entire US$100 million in convertible bonds, pursuant to the Upsize Option, will be placed by the Joint Lead Managers (“Placement”) to Breedens Investments Pte Ltd (“Breedens”), a substantial shareholder of Olam and an indirect wholly-owned subsidiary of Temasek Holdings (Pte) Ltd, which marks its second investment in Olam in the last three months.”

read more: Olam Press Release

In conjunction with its 35th anniversary, Temasek Holdings (Temasek) today released an updated Temasek Charter.

Speaking at the launch, Temasek Chairman, Mr S Dhanabalan, said, “Temasek’s mission remains to create and deliver sustainable long-term returns for our stakeholders. We have refined our Charter to more clearly articulate our focus as a value-oriented investor, and also as a shareholder focused on achieving sustainable returns by engaging with the boards and management of our portfolio companies. We will continue to review our Temasek Charter regularly, and update it as needed in consultation with our shareholder, to ensure that it remains relevant to our current activities and aspirations as an institution.”

First published in 2002 and updated in 2009, the Temasek Charter re-affirms the role of Temasek as an active investor and value-adding shareholder to deliver sustainable long-term value.

read more: Temasek Press Release

Asia One reports, “the investments Temasek Holdings has made in rights issues over the past eight months have surged by around 184 per cent on the back of rocketing global equity markets. Data compiled by The Straits Times from public information shows that Temasek has spent about US$2.9 billion (S$4.2 billion) subscribing to new shares of companies in which it already holds stakes. It began its round of investments by taking up new shares in Standard Chartered Bank in November. It has also joined cash calls made by DBS Group Holdings, Indonesia’s Bank Danamon, CapitaLand, Chartered Semiconductor Manufacturing and Neptune Orient Lines.

In a rights issue, a company sells new shares to raise capital. Shares are offered – usually at a discount to the current price – to existing investors in proportion to their holding.”

read more: Asia One

Ho Ching

Chief executive Ho Ching said the fund had already been approached by institutional investors regarding such deals. Temasek is considering including outside investors in single projects as well as the possibility of creating a fund to invest in multiple projects.

This comes a week after the company parted ways with Chip Goodyear, who was to take over the chief executive position in October. Goodyear will now leave the company in August. Temasek has not given a reason behind this decision, saying only that “the Temasek board and Mr Goodyear have concluded and accepted that there are differences regarding certain strategic issues that could not be resolved.” Despite the value of Temasek’s assets plunging by more than SGD$40bn ($27.7bn) in the 12 months ended 31 March, the fund has had an annual return of about 18 per cent a year since its launch in 1974.

read more: AltAssets

Reuters reports that, “Singapore’s state investor Temasek is in talks with a unit of Bank of China to launch a $1 billion to $2 billion investment fund to focus on fast-growing infrastructure projects across China, sources said on Thursday. Talks between Singapore’s sovereign wealth fund and BOC International, the investment banking arm of Bank of China, were in the early stages but both had agreed on the general idea of the fund plan, said the sources, who had direct knowledge of the plan.

‘This is an initiative led by BOC International. The two sides are talking,’ said one of the sources.

Temasek and Bank of China aimed to set up a joint venture to manage the fund, which would seek investment opportunities emerging from China’s 4 trillion yuan ($585.5 billion) economic stimulus package launched late last year, the sources said.”

read more: Reuters

Wall Street Journal reports, “Alan Thompson, managing director for Latin America at Temasek Holdings, Singapore’s sovereign wealth fund, agreed that Brazil’s strong financial system is an important factor in the country’s strong economic growth potential. Not a single bank failure has occurred in Brazil since September 2005 when Banco Santos was closed in what Brazilian bank regulators called an isolated event.

‘Over the last two years, we recognized that the economic world order is changing,’ said Thompson, who said Temasek has made several investments since establishing a presence in Brazil last year.

Thompson also said Brazil’s moderate inflation of 4% was the result of well-developed institutions that drive monetary policy. He cited stable fiscal policy as the reason Brazil has become a net creditor to the rest of the world and accumulated $200 billion in foreign exchange reserves. The global financial community has recognized Brazil’s new place in the world. Standard & Poor’s upgraded Brazil’s sovereign debt to investment grade last year. Foreign investors poured in a record $45 million of direct investment in 2008. “

read more: Wall Street Journal

Reuters reports that, “The Singapore government will help nurture local companies compete in international markets, but will not force its sovereign wealth fund Temasek to finance them as suggested by some legislators, Prime Minister Lee Hsien Loong told parliament on Wednesday.

‘Government wants to help companies grow, is trying many ways and is willing to do more,’ Lee said. ‘But we don’t believe that this can be done by the government by simply pouring money, or creating a ‘Temasek II,’ he said.

His remarks were in response to ideas floated by two members of parliament on Tuesday that Temasek could make a greater difference to the island-state by helping home-grown enterprises expand regionally and globally. The government has come under fire from citizens and lawmakers over losses at Temasek, in particular its ill-timed exit from Bank of America which resulted in a loss of over $3 billion.”

read more: Reuters

Bloomberg reports that, “Temasek Holdings Pte, a Singapore state-owned investment company that bought stakes in Merrill Lynch & Co. and Barclays Plc amid the global financial crisis, has sold its stake in Bank of America Corp. Temasek had received shares in Bank of America after the U.S. bank bought Merrill Lynch & Co. The investment company had paid about $5.9 billion for a 14 percent stake in Merrill Lynch.

‘We have divested our shares in Bank of America,’ Temasek said in an e-mailed response to Bloomberg News queries.”

read more: Bloomberg

According to the Business Standard, “the finance ministry and the Reserve Bank of India (RBI) has asked the Securities and Exchange Board of India (Sebi) to examine whether a proposal by Temasek Holdings and Government of Singapore Investment Corporation (GIC) to increase their stakes in ICICI Bank would trigger the takeover code under which they would have to make an open offer to buy an additional 20%. The Singapore government has sought clarification on a proposal for the two companies to increase their stakes in ICICI Bank to 20 per cent, each holding 10 per cent. This would collectively make them the largest shareholders in the country’s largest private bank. Currently, Life Insurance Corporate is the single largest shareholder with 9.38%. The two Singapore investment vehicles currently hold 10.3 per cent in the bank — Temasek 8 per cent and GIC 2.3 per cent.

Sebi is yet to take a final view on the issue, sources said. The issue hinges on whether the two entities should be treated as one entity or not.”

read more: Business Standard

Telegraph states, “Shirin Ismail, head of absolute returns investment strategies at Temasek’s standalone unit Fullerton Fund Management, told the Reuters Private Equity and Hedge Funds Summit in Singapore: ‘This is an area we will add on because this is where we think it will give us that level of capital preservation that we need.’

Hedge fund withdrawals reached a record $159bn (£110bn) last year, according to Lipper, a unit of Thomson Reuters. Some commentators have predicted that as many as half of existing hedge fund managers could shut this year. However, the industry’s supporters argue that in a period of falling stock markets investors need the more sophisticated strategies hedge funds offer. “

read more: Telegraph

According to Temasek, “Temasek Holdings Advisors India Pvt. Ltd (Temasek) has announced the expansion of its India operations with the launch of its Chennai branch office. While Temasek enjoys a strong presence in the North and the West, the Chennai office represents a strategic geographical diversification to focus on the large South India market, providing an ideal base from which to penetrate the untapped areas in the South. Temasek commenced its India operations in 2004 with the establishment of its Mumbai office.”

read more: Temasek Holdings Press Release

According to Reuters, “Indonesia’s fifth-largest lender, PT Bank Danamon Tbk, said on Thursday it plans to exercise its option to buy back $300 million of subordinated bonds as it has sufficient funds. Danamon, controlled by a consortium that includes Singapore’s state investor Temasek and Deutsche Bank, said its net profit for 2008 fell 28 percent to 1.53 trillion rupiah ($129.5 million), from 2.117 trillion rupiah in 2007. The bank said the drop in profit was due to 804 billion rupiah worth of non-recurring expenses, which it said were related to unwinding foreign exchange forward contracts and provisioning.”

read more: Reuters

Chip Goodyear

According to the press release, “the Board of Directors of Temasek Holdings (Private) Limited Temasek today announced a leadership transition – Mr Charles Chip W. Goodyear will succeed Ms Ho Ching as Chief Executive to lead the Singapore investment company.

Mr Goodyear, 51, an American, joined the Temasek Board on 1 February. He assumes the position of CEO-Designate on 1 March and will succeed Ms Ho on 1 October 2009. Mr Goodyear retired from BHP Billiton on 1 January 2008 after leading the world’s largest diversified resources company through its rapid growth and expansion.

The appointment and leadership transition will further strengthen Temasek’s Board and management. The Board, including Ms Ho, has been addressing succession planning annually since early 2005.

Temasek Chairman, Mr Dhanabalan said, ‘Ho Ching has been instrumental in bringing Chip on board. We have been working on this appointment for more than a year.’

Mr Dhanabalan added that Mr Goodyear shares the vision and values that underpin Temasek as a key Singapore institution and an international investment company. ‘Chip presents a rare and unusual combination of investment and operational experience that can support the continued transformation of Temasek,’ he said.

‘Chip’s leadership and business experience, and his demonstrated capability in developing strong management teams give us the confidence that he will make a difference to Temasek just as Ho Ching and her predecessors have done over the last three decades.’

Ms Ho and Temasek’s management helped shape the Singapore company into a respected international investor.”

read more: Temasek Press Release

According to the Economic Times, “The finance ministry has proposed that a key agreement between India and Singapore be amended to prevent two Singapore government-owned investment entities — Temasek and GIC — from together holding more than 10% equity stake in any publicly-traded Indian company.

Under the current SEBI regulations, a foreign institutional investor (FII) cannot hold more than 10% in a single Indian company. Different FIIs owned by a common entity are classified as an FII group and are subject to the 10% cap. GIC and nine wholly-owned subsidiaries of Temasek are registered separately with the market regulator as FIIs, and as they have a common owner, they should have been categorized as an FII group, according to a note prepared by the ministry.

However, the Comprehensive Economic Co-operation Agreement (CECA) signed between the two countries in 2005 treats GIC and Temasek as unrelated and independent entities. It gave Temasek and GIC the right to hold 10% individually in a single company thereby allowing them the option to together increase their shareholding to up to 20% in a company.”

read more: Reuters

Tharman Shanmugaratnam

Reuters reports that, “Singapore’s sovereign wealth funds, the Government of Singapore Investment Corp and Temasek Holdings, outperformed global equity markets in 2008, the city-state’s finance minister said on Monday.

‘Their overall value has fallen by less than the decline in global equity markets, as they maintain diversified portfolios and had taken precautionary actions early in the crisis to reduce their exposures to the equity markets,’ Tharman Shanmugaratnam said in a reply to a parliamentary question, referring to a 42 percent fall in 2008 in the MSCI World equities index.”

read more: Reuters

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