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SINGAPORE: Temasek Holdings' assets rose 13 per cent in the year ended March to S$185 billion, and it has delivered 19 per cent compounded annual total shareholder returns by market value annually for the last three years.
Temasek chairman S Dhanabalan revealed the figures at an industry event on Thursday.
Mr Dhanabalan believes Temasek and other sovereign wealth funds have key roles to play in the global economy. But he warned that Temasek could be hit by protectionist behaviour overseas.
Temasek may be among the most transparent of sovereign wealth funds, but it is not immune to suspicion from countries it wants to invest in.
According to Mr Dhanabalan, Temasek still risks collateral damage from negative sentiment directed at other less transparent funds.
He said: "We are seeing growing attempts around the world to apply regulations to cross-border transactions."
For example, countries like the US and Germany are increasingly starting to factor in national security concerns when evaluating foreign investments.
To address such concerns, Temasek is working with the International Monetary Fund (IMF) to draft a code of conduct for sovereign funds.
"We hope the process would be a success and help diffuse concerns in the OECD markets about SWFs and their motives," said Mr Dhanabalan.
What will truly reduce suspicions, said Temasek, is when the gap between Eastern and Western economies is narrowed.
But one thing is clear - such funds are here to stay.
Mr Dhanabalan said: "Fundamentally, growth in the number of SWFs reflects fairly deep trends in economic rebalancing, which will continue over the next few decades."
Mr Dhanabalan also said that Temasek Holdings is prepared to invest more money in Western banks should opportunities come by.
According to one estimate, sovereign wealth funds today hold some US$2 trillion to US$2.5 trillion in assets.
The number could balloon to US$12 trillion in the next decade.
- CNA/ir
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