Fletcher in the News

SWFI Senior Fellow Patrick Schena on Temasek Assets in Singapore

Temasek Assets Probably Reached Record on Stocks: Southeast Asia

Temasek Holdings Pte (TMSK)’s assets probably jumped to a record as Singapore’s state-owned investment company benefited from a rebound in global stocks.

The company, which will release its annual review tomorrow, may have increased the value of its holdings by at least 8.6 percent to S$215 billion ($170 billion) in the year to March 31, according to CIMB Research Pte, Tufts University and Institutional Investor’s Sovereign Wealth Center. Nine out of Temasek’s 10 biggest holdings gained during the 12 months, according to data compiled by Bloomberg.

A recovery in stocks around the world may have helped lift the value of Temasek’s holdings, of which more than 70 percent were in publicly traded assets as of March 2012. The MSCI World Index (MXWO) gained 9.3 percent in the year to March 31, while Singapore’s Straits Times Index (FSSTI), where Temasek is the biggest shareholder in about a third of its 30 members, increased 9.9 percent during the period….

…“Unlike the past year, they probably have beaten their hurdle rate of 8 percent and the global equity markets have helped them in that,” said Patrick Schena, a senior fellow who researches state investment firms at the [Fletcher School at] Tufts University’s Sovereign Wealth Fund Initiative.

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