Temasek's Portfolio Hit: $27.75 Billion

By P.R. VENKAT and SE YOUNG LEE

SINGAPORE -- The value of state-owned investment company Temasek Holdings Pte. Ltd.'s portfolio fell more than 40 billion Singapore dollars (US$27.75 billion) at the end of March from a year earlier, Chief Executive Ho Ching said.

Ho Ching

"We are certainly not happy with the negative wealth added in March last year as well as March this year," Ms. Ho said.

The figure suggests Temasek has recouped some of the losses made at the height of the financial crisis, as global markets begin to rally on hopes that the worst of the downturn has passed. Ms. Ho didn't disclose the percentage decline or the overall value of its assets.

The Singapore government previously said that the value of Temasek's portfolio had fallen S$58 billion to S$127 billion from the end of March 2008 to November, suggesting a 31% decline. Based on those figures, it suggests the portfolio lost about 22% over 12 months,

Earlier

• Goodyear Won't Be Temasek CEO
  07/22/2009
• Opinion: Temasek and Transparency -- II
  07/22/2009
• Randomly Noted: Singapore's Temasek Troubles
  07/22/2009
• Temasek Loses Big on Stake in Barclays
  06/04/2009
• Deal Journal: A Lesson in Bad Timing
  06/04/2009
• Temasek Portfolio Lost $39.91 Billion
  05/29/2009
• Opinion: Temasek and Transparency
  02/12/2009
• Taking Hits, Temasek's Assets Slide 31%
  02/11/2009
• Deal Journal: The Now Slightly Less Singaporean Singapore SWF
  02/09/2009
• Temasek Shakes Up Its Top Ranks
  02/07/09

Ms. Ho, speaking at the Institute of Policy Studies in Singapore, also said Temasek was exploring the possibility of creating "one more group of stakeholders." Ms. Ho said Temasek could allow outsiders to co-invest with the investment fund, a plan that may be firmed up in the next six to 12 months.

Temasek wants to invite "sophisticated" investors to put money into deals alongside Temasek and could eventually allow retail investors to co-invest in eight to 10 years if the test succeeds, she said.

She also said the bulk of incentives to Temasek's senior management has been deferred by three to 12 years.

Separately, Ms. Ho said Temasek's succession planning continues given the impending departure of Chief Executive-Designate Charles "Chip" Goodyear.

Last week, Temasek said it and Mr. Goodyear mutually agreed to part ways -- just a little more than two months before the former BHP Billiton Ltd. chief was to succeed Ms. Ho.

Temasek said last week that the decision was due to "differences regarding certain strategic issues." Mr. Goodyear will leave the company Aug. 15. Ms. Ho said in her speech that his departure was "unfortunate."

Chip Goodyear

"This does not mean, however, that we should stop this discipline of succession review," she said. "I just want to reaffirm that the decision was both mutual and amicable. We continue to hold Chip in very high regard for his professionalism and his integrity."

Temasek surprised many in February when it named U.S.-born Mr. Goodyear as successor to Ms. Ho, who is married to Singapore Prime Minister Lee Hsien Loong and is daughter-in-law of the founder of modern Singapore, Lee Kuan Yew.

A person familiar with the situation said last week that Mr. Goodyear's proposals for the company's new strategic direction were considered too risky by some, without elaborating. He also said Mr. Goodyear planned changes in senior management that weren't well received by Temasek's board.

Ms. Ho said Temasek will keep its portfolio exposure to Asia at 70% or more, its current exposure to members of the Organization for Economic Cooperation and Development at around 20%, and its exposure to new regions like Latin America, Africa and others at up to 10%.

"We continue to anticipate opportunities, not just within Asia, but also in Latin America and elsewhere, too," she said.

Write to P.R. Venkat at venkat.pr@dowjones.com and Se Young Lee at vincent.lee@dowjones.com