Temasek Holdings is a Singaporean holding company, owned by the Government of Singapore. Incorporated on 25 June 1974 as a Commercial Investment Company, Temasek owns and manages a net portfolio of S$313 billion (222 billion USD). It is an active shareholder and investor, and its investments are guided by four key themes – transforming economies, growing middle-income populations, deepening comparative advantages and emerging champions. Its portfolio covers a broad spectrum of sectors including financial services, telecommunications, media and technology, transportation and industrials, life sciences and agribusiness, consumer and real estate, energy and resources, as well as multi-sector funds. Headquartered in Singapore, Temasek has a multinational team of 800 people, in 11 global offices including two offices in Beijing, and one office in each of Shanghai, Mumbai, Hanoi, London, New York, San Francisco, Mexico City, Washington, D.C., and Sao Paulo.
Temasek differs from many sovereign wealth funds because it invests mostly in equities, is the outright owner of many assets, and pays taxes like other commercial investment firms. Currently, Singapore and China comprises the largest exposure in the portfolio, each accounting for 26% of its exposure. Next largest was North America (15%), Asia ex Singapore and China (14%) and Europe (10%). Compounded annualized Total Shareholder Return since inception in 1974 is 15% in Singapore dollar terms.
Investments and shareholding (%)
- Financial Services - Visa Inc. (less than 1%), Adyen N.V. (7%), AIA Group Limited (3%), China Construction Bank Corporation (3%), DBS Group Holdings Ltd (29%), HDFC Bank Limited (less than 1%), Industrial and Commercial Bank of China Limited (2%), Mastercard Incorporated (less than 1%), PayPal Holdings, Inc. (less than 1%), Ping An Insurance (Group) Company of China, Ltd. (2%), PT Bank Danamon Indonesia Tbk (34%), Standard Chartered PLC (16%), Virtu Financial, Inc. (9%)
- Telecommunications, Media & Technology - IHS Markit Ltd. (3%), CenturyLink, Inc. (9%), Global Healthcare Exchange, LLC (79%), Intouch Holdings Public Company Limited (18%), Meituan Dianping (1%), Singapore Technologies Telemedia Pte Ltd (100%), Tencent Holdings Limited (less than 1%), Dell Technologies, Inc (3%), Alibaba Group Holding Limited (1%), Mediacorp Pte Ltd (100%), Singapore Telecommunications Limited (52%)
- Consumer & Real Estate - A.S. Watson Holdings Limited (1%), CapitaLand Limited (40%), M+S Pte. Ltd. (40%), Olam International Limited (54%), Pulau Indah Ventures Sdn. Bhd. (50%), Surbana Jurong Private Limited (100%), Ascendas–Singbridge Pte. Ltd. (51%), Mandai Park Holdings Pte. Ltd. (100%), Mapletree Investments Pte Ltd (100%), SATS Ltd. (40%)
- Transportation & Industrials - Keppel Corporation Limited (20%), PSA International Pte Ltd (100%), Sembcorp Industries Ltd (49%), Singapore Technologies Engineering Ltd (51%), Singapore Airlines Limited (56%), Singapore Power Limited (100%), SMRT Corporation Ltd (100%)
- Life Sciences & Agribusiness - Bayer Aktiengesellschaft (4%), Celltrion Healthcare Co., Ltd. (10%), Celltrion, Inc. (10%), WuXi AppTec Co., Ltd. (8%), WuXi Biologics (Cayman) Inc. (5%)
- Energy & Resources - FTS International, Inc. (38%), Repsol, S.A. (1%), Pavilion Energy Pte Ltd (100%)
- The latest investment of Temasek in 2020 include : Pivot Bio, Growthwell Group, Alan, MiningLamp, Abbisko Therapeutics, CureFit, Impossible Foods, ShopBack, Roblox, Fabric - worth 1 billion USD
Temasek seeks out companies that harness technological advancements to meet the needs of demographic shifts and other changing consumption patterns. Innovative companies may rapidly disrupt old business models, or create new consumption demand. Temasek expects to reshape its portfolio increasingly in line with these trends. The portfolio of Temasek comprises both listed and unlisted assets, with the latter consisting of companies and funds. Its unlisted blue chip companies and its portfolio of high-quality funds pay steady dividends and distributions. Its investments in funds have been instrumental in helping gain deeper insights into new markets and have provided co-investment opportunities. Meanwhile, its selective investments in early-stage companies provide Temasek with insights into innovation, enabling Temasek to better assess future opportunities and understand potential implications for its broader portfolio, in addition to delivering returns.
Organizational Risk Management Framework of Temasek includes Risk Return Appetite Statements (RRAS) which set its various levels of risks tolerance, from reputational risk, to liquidity risk and sustained loss of overall portfolio value over prolonged periods.
- RRAS 1- no tolerance for risks that could damage Temasek's reputation and credibility
- RRAS 2 - focus on performance over the long term
- RRAS 3 - flexibility to take concentrated positions
- RRAS 4 - Temasek maintains a resilient balance sheet
- RRAS 5 - Temasek evaluates the potential for sustained loss of overall portfolio value over prolonged periods and uses different scenarios to test its resilience