Temasek's Assets to Reach Its Previous High on Asia Success

(July 7, 2010) — Temasek Holdings is expected to post a record jump in the value of its assets on the heels of rebounding markets and increasing bets in Asia.

The rebound of the fund reflects the success of the globe’s sovereign wealth fund assets, which climbed 9% in 2009 from a year earlier to $3.5 trillion. The new peak also shows a trend of SWFs boosting investments in Asia to take advantage of the region’s strong economic growth. Other SWFs that have heightened investment in the region include the Qatar Investment Authority and Norway’s Government Pension Fund, the world’s second largest.

Overseas Asian investments made up 43% of Temasek’s portfolio last year, up from 16% in 2004.

According to Bloomberg, Temesak is expected to say, when unveiling its annual report for 2009/10, that assets recovered by approximately 40% to the $133 billion high reached two years earlier. The fund, with $123.6 billion in assets as of the end of July 2009, has been expanding aggressively into energy, commodities and agriculture, yet financials and telecoms still account for the largest share of its holdings. In 2009, investments in financial services comprised 33% of the fund, while telecommunications and media accounted for 26%.

The state investor may also release more insight into how it plans to build Seatown, a multibillion-dollar investment firm it set up earlier this year with staff seconded from Temasek.

Separately, Temasek is in search of a successor to CEO Ho Ching, 57, who spent more time in Asia as the region led a rebound from the economic crisis, according to Bloomberg. In May, Temasek said that former Singapore Exchange CEO Hsieh Fu Hua will join the fund as executive director and president in August to assist Ho in areas such as talent development and succession planning.

Temasek, wholly owned by Singapore’s Ministry of Finance, was founded in 1974 to foster development of the island’s banks, airlines and ports.