Contents
Changing of the guard 4
Temasek-linked companies 5
Review of Temasek 7
Well-diversified, well-positioned portfolio 7
Moving into other alternative investments 8
Total shareholder returns 9
Portfolio not spared from global crisis 9
Well-endowed balance sheet 10
Learning from Temasek’s past actions 13
Natsteel takeover battle 13
Counter-offering for UOL 14
Takeover of NOL 14
Political sensitivities from Shin Corp acquisition 15
Unprecedented loss from Merrill Lynch investment 16
Temasek-linked companies 18
Divestments of Singapore holdings 19
If Chip’s track record is any guide… 25
Competence in portfolio management, with strategic thrust in China 26
Disciplined capital management; creation of shareholder value 27
M&A: paying for long-term value 29
Key implications for Temasek 30
Overexposed to banks? 34
Fullerton Financial Holdings — greater ambitions to be realised 35
Temasek’s direct holdings: DBS, Stanchart and Barclays 38
Energy/Natural resources 39
Greater China 41
India 43
Key investments at a glance 44
Understanding Temasek 46
Mission 46
Relationship with Singapore government 46
Relationship with portfolio companies 47
Performance measure 47
Internal investment process 47
Portfolio allocation 48
Value-creation framework 48
Management team 49
Sovereign Wealth Funds 50
Temasek — how it compares with global peers 50
Santiago Principles 53
Ranking by assets 54
SWF transaction history 55
Valuation methodology & risks to PT 56
Latest company views
CapitaLand 57
Chartered Semiconductor 61
DBS Group Holdings 65
Keppel Corp 69
Neptune Orient Lines 72
SembCorp Industries 75
Singapore Airlines 78
Singapore Telecom 81
SMRT Corporation 85
StarHub 88
ST Engineering 91