Tamasek goes Western

[rffrydr]

But, apparently, holding hard to the hard assets.

Temasek’s new CEO

Published: February 6 2009 15:07 | Last updated: February 6 2009 16:33

A lot of investors claim to have long-term horizons. Temasek Holdings really means it. The charts in the Singaporean state investment firm’s annual report, covering all manner of holdings from German biotech to Indian telecoms, go back 10 years, so that recent sorties into western financial stocks – Standard Chartered (July 06), Barclays (August 07), Merrill Lynch (December 07) – appear as tiny downward blips.

That’s just as well. Those investments, part of a grand scheme to capitalise on the growth of middle-class consumer credit in Asia, have not got off to a terrific start. Take the initial 9 per cent of Merrill Lynch, which cost Temasek $5bn; that could now buy a sixth of Bank of America, Merrill’s new owner. In fact, the whole portfolio has had a rough time of it recently: of 57 listed stocks, just two are up over the past 12 months. The published record stretching back to 1974, however, is still one to be proud of: 18 per cent compounded annual growth in total shareholder returns until March 2008.

The appointment of Chip Goodyear as chief executive, announced yesterday, should not herald any great changes in style or strategy. As the former chief of BHP Billiton, the miner, he is no stranger to multi- decade investment cycles. Geographic diversification – a third Singapore, a third Asia, a third non-Asia – will remain the overriding aim.

But what he will bring is a dose of celebrity and greater cultural diversity. He, an American, and New Zealander Simon Israel, former Asian head of Danone, will hold the two top executive roles. Mr Goodyear may also accelerate Temasek’s investments in energy and natural resources, which accounted for just 5 per cent of holdings in the year to March last year. With mining valuations already flat on their backs, and tentative signs of recovery from China, the world’s largest consumer, the timing can only improve on Temasek’s run at financials.
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Today is the Tomorrow you worried about Yesterday!

[HenryTo]

Temasek chimes in on the macro view.

http://www.bloomberg.com/news/2012-05-22/temasek-says-markets-entering-period-of-stress-in-next-2-years.html