Temasek makes $7.6b new investment<\/p>\n
Linus Chua and Chen Shiyin, Bloomberg\/Kuala Lumpur<\/p>\n
Temasek Holdings Pte, a Singapore state-owned investment company,
\ninvested S$13 billion (US$7.6 billion) in the year through March,
\nwith foreign holdings now making up more than half its S$103
\nbillion portfolio.<\/p>\n
The 31-year-old company, owned by Singapore's finance
\nministry, has also paid out an average S$1.3 billion in dividends
\nto the Singapore government, according to a review of its
\nperformance published on Wednesday.<\/p>\n
Temasek Chief Executive Ho Ching, 52, is investing outside of
\nSingapore to try and lift returns that averaged 6 percent a year
\nin the decade. Ho, who is married to Singapore Prime Minister Lee
\nHsien Loong, has overseen investments in China, India, South
\nKorea and Indonesia since she became executive director in May
\n2002. She took the role of chief executive in January 2004.<\/p>\n
\"Increasing their investments overseas is a reasonable
\nstrategy to take,\" said Yang Sy Jian, research director at UOB-
\nKay Hian Pte in Singapore. \"Singapore has reached a certain level
\nof maturity and Temasek wants to broaden its exposure to the
\nless-developed countries to bring up its growth potential.\"<\/p>\n
Temasek's portfolio increased from S$90 billion a year earlier
\nand the company reported a 30 percent return over two years. It
\nhad a 16 percent return on assets in the year through March,
\nbased on the market value of its investments.<\/p>\n
The company's returns since it was formed offered an average
\nannual dividend yield of more than 7 percent to the Finance
\nMinistry, Temasek said.<\/p>\n
More than S$10 billion of the investments were in Asia, where
\nthe company bought stakes in China's Minsheng Banking Corp.,
\nPakistan's NDLC-IFIC Bank Ltd., India's Mahindra & Mahindra Ltd.,
\nand Malaysian Plantations Bhd.<\/p>\n
Since the end of March, Temasek has also announced plans to
\nbuy a $3.6 billion stake in the Bank of China, the nation's
\nsecond-largest bank, and $1 billion of stock in China
\nConstruction Bank, the third-largest Chinese lender.<\/p>\n
\"We will continue to seek new investments that will maximize
\nvalue within our risk-return framework,\" Chairman S. Dhanabalan,
\n68, said in the review. \"We have the flexibility to take a long
\nview of our investments. We also have the option of taking
\nconcentrated positions.\"<\/p>\n
The investment company said it's optimistic about Asia's
\n\"long-term\" prospects and \"cautious\" in the short to medium term,
\naccording to the review. It is prepared to be \"overweight\" on
\ncash if appropriate.<\/p>\n
\"The outlook in Asia appears to have moderated this year, with
\nsome uncertainties in the next couple of years,\" said Dhanabalan,
\na former cabinet minister. \"We expect to maintain a cautious
\nstance over this period.\"<\/p>\n
Temasek posted a 3.8 percent rise in group net income to
\nS$7.65 billion in the year to March 31, from S$7.37 billion a
\nyear earlier, it said. Sales rose 22 percent to S$68.7 billion,
\nboosted by units such as Neptune Orient Lines Ltd., operator of
\nAsia's second-largest container line, and Singapore Airlines
\nLtd., the world's No. 2 carrier by market value.<\/p>\n
The company disclosed details of its profit in a prospectus to
\ninvestors last month, when it sold $1.75 billion of 10-year
\nnotes. The bond issue, its first such sale, will help fund
\ninvestments in foreign companies such as Bank of China.<\/p>",
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