The table attached to this article On a mission
to dispel myths,
In London, Temasek's executive director addresses its Govt links,
Barclay stake,by
Katherine Griffiths--/www.todayonline.com,Friday,
September 7, 2007
says GIC assests is US $330 billion and Temasek US$108
billion.
sources of the article:
www.economist.com----World
investment prospects
THE day-to-day head of investment giant Temasek is in London to try
to dispel what he believes are myths about the US$108-billion
($164-billion) fund which is 100-per-cent owned by the Singapore
Government.
.
"Misunderstood is probably the wrong word, but we are not
understood," said 54-year-old New Zealander Simon Israel in one of
the first interviews he has given in the West.
.
Yet, some say the company is not allaying fears among Western
governments and several Asian ones that it wants to snap up
their countries' assets. In the United Kingdom, Temasek has just
further increased its biggest holding, in Standard Chartered, to
16.3 per cent from 15.3 per cent.
.
A few weeks ago, Temasek surprised the world by taking a 2-per-cent
stake in Barclays as part of the UK bank's increased bid for ABN
Amro. There is also speculation that Temasek might deploy some of
its mighty reserves to snap up a significant chunk of the
31-per-cent stake held by Nasdaq in the London Stock
Exchange.
.
"We may or may not be interested," said Mr Israel.
.
Temasek is also in a delicate situation over its strategic holdings
in British banks, with Barclays' shares having fallen about 15.6
per cent, as of Wednesday's price since it tabled its new offer
for ABN on July 23.
.
Mr Israel noted that Temasek has suffered a "paper" loss but said:
"All the banks are reflecting uncertainty in the market. Barclays
is no exception. We have not changed our view on Barclays."
.
If Barclays is to have a hope of closing the gap on a rival higher
bid from a consortium led by the Royal Bank of Scotland, it will
have to pull another rabbit out of its hat. Could that be a further
cash infusion from Temasek? If the bank's chief executive John
Varley were to suggest it, Mr Israel signalled he would consider
it.
.
Or, if the ABN takeover fails, some believe Temasek could be in a
position to suggest a deal between Barclays which wants to ramp
up its exposure to the fast-growing Asian economies and smaller
rival Standard Chartered, which focuses on Asia, Africa and the
Middle East.
.
Mr Israel, 54, was keen to emphasise both banks are attractive
simply as investments. Standard Chartered is a particular favourite
of Temasek, because it taps the soaring demand for banking services
from Asia's burgeoning middle class.
.
In Barclays' case, the opportunity lies in the fact that Temasek
can provide contacts and act as an adviser in its push into Asia.
The Barclays stake also fits with the strategy Temasek outlined in
2002 to grow its holdings in Western companies.
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However, Temasek has, in the past, used its holdings to suggest
companies get together, and Mr Israel will not rule out such a
scenario in the case of Barclays and Standard Chartered.
.
"We are patient investors, not passive ones," he said. "We think
about the optionality around our portfolio."
.
Mr Israel joined Singapore's investment company in July last year
after three decades in Asia, including running America's Sara Lee
and France's Danone in the region.
.
His appointment as executive director was part of a drive by
Temasek to become more open to the outside world, as its ambitions
to flex its muscles on the international stage also grew.
.
One of the messages Temasek is trying to convey is that it operates
separately from the government. Said Mr Israel: "The idea that
Temasek is an instrument of the Singaporean Government could not be
further from the truth."
.
All investment decisions have been made by Temasek's board, Mr
Israel maintained. The Government receives a 7 per cent dividend,
and gets an annual update on performance and that is it, he
said.
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One sticking point for outsiders is that Temasek's chief executive
Ho Ching is the wife of Prime Minister Lee Hsien Loong.
.
Said Mr Israel: "When the outside world looks at it, I can
understand why there is an issue of perception." But "those who
know Ho Ching well will tell you she's very much her own
person".
.
Having become accustomed to being one of only a handful of
government-financed funds that invest in assets, Temasek is now
finding the space increasingly crowded -- with China, Indonesia and
Japan considering establishing new sovereign funds.
.
"Temasek is highly differentiated," Mr Israel argued, saying
Temasek stands apart because of its separation from politics, its
historical performance -- it has delivered 18 per cent annual
growth -- and its publication of an annual report, which contains
its revenues and profits, and a full list of its holdings.
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But Mr Israel also spoke up for the emerging class of sovereign
funds against the backdrop of threats by countries such as Germany
to block them from investing in strategic sectors like banking and
telecoms.
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"People say sovereign funds will go from about $2,500 billion today
to $12,500 billion by 2015, which sounds plausible. The world is
struggling to come to terms with exactly what that is going to
mean. I hope they take time to think carefully before leaping and
legislating," he said.
.
Temasek may be facing more competition, but the future looks bright
for the tightly-run company. More Western companies want to invest
in Asia, and Temasek, with its deep roots in Asia and connections
with the region's most powerful companies and families, is in a
strong position to help them.
.
If the debt markets dry up further and leave private equity funds
impotent, Temasek and its deep-pocketed rivals should also be able
to pounce on more assets around the world.
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"I tend to look at life as the glass being half-full," said Mr
Israel. "The large capital inflows (from sovereign funds) could be
good - who's to say it is going to be bad?" -- The Telegraph
2.Assume return is 5 %,the yield can cover capital and
operational
expenditures.I am looking forward ALL Singaporeans will
have a Tax Free Year when SG reach 50th
birthday!!
