What Is Temasek Holdings?
Temasek Holdings is a sovereign wealth fund (SWF)—a state-owned company—that manages an investment fund on behalf of the Govt of Singapore. Using federal reserves, it makes a speciality of investments located in Singapore, China, and North The U.S., along with Europe and a couple of emerging economies. Temasek Holdings has a portfolio of more or less SGD $306 billion (US $226.6 billion) as of March 2020.
The investment fund lately has 11 offices globally and manages fairly a large number of investments and financial services along side telecommunications, media and generation, transportation and industrials, consumer and precise belongings, life sciences and agribusiness, energy, and assets.
Key Takeaways
- Temasek Holdings is a state-owned company that manages an investment fund on behalf of the Govt of Singapore.
- Financed by the use of government reserves, it has a portfolio of near to $306 billion and has a whole shareholder return of 15% since its inception in 1974.
- Temasek has a largely impartial Board of Directors, and one shareholder—the Singapore Ministry of Finance.
- The company’s Temasek Foundation has funded 23 philanthropic endeavors all the way through Asia.
Understanding Temasek Holdings
Temasek Holdings was once primarily based in 1974 underneath the Singapore Corporations Act, which incorporated the gang. Incorporation allowed the company to own and arrange investments and assets that the Singapore government had prior to now been in command of. Via relieving the government from the financial side task of managing investments, the government’s Ministry of Finance was once able to have overtime and talents to be aware of policymaking and regulation, as it was once designed to do.
The company was once to start with built on a portfolio of SGD$354 million bucks from shares in firms, startups, and ventures which were held by the use of the Singapore government, along side a chook park, a lodge, a shoemaker, a steel mill and an airline.
Even if Temasek Holdings has the usual corporate building, with two unique choices that reflect its status as a fifth Time table corporate in Singapore:
- The approval of the President of Singapore is had to take sure actions, paying homage to appointment and removing of directors and key managers, along side the CEO; the Board and CEO are accountable to the President. The vast majority of Temasek Holdings’ directors and key officers are impartial directors appointed from the private sector. Temasek has one sole shareholder throughout the Singapore Minister for Finance.
- The company’s financial statements are audited by the use of the Govt of Singapore’s Auditor-Fundamental.
Even if the Singapore Minister of Finance is the company’s sole shareholder, Singapore’s government is not directly interested by any of the investment or operational picks on any stage of the company. The government is a shareholder as outlined by the use of the Board of Directors, which allows Temasek to accomplish as a fifth Scheduled Company.
Aaa
The rating that Moody’s Patrons Supplier assigns Temasek and the debt issued by the use of its financing subsidiary Temasek Financial Ltd.
Even if it took a hit in fiscal three hundred and sixty five days 2019, posting only a 1.49% shareholder return, the company boasts a 15% total return since its inception in 1974.
Like several company, Temasek can pay taxes to the tax govt and separately broadcasts dividends to its shareholders.
Specific Considerations
Temasek’s internet web page emphasizes its “stake throughout the well-being of our wider group,” citing its Temasek Trust, primarily based in 2007, which budget the Temasek Foundation. This nonprofit is subdivided into six foundations that oversee 23 philanthropic endowments:
- Temasek Foundation Global
- Temasek Foundation Cares
- Temasek Foundation Connects
- Temasek Foundation Nurtures
- Temasek Foundation Innovates
- Temasek Foundation Ecosperity
Basic, Temasek Holdings claims to have impacted 1,300,000 people all the way through Asia and Singapore with its group art work and programs.
