Temasek Holdings Pte, Singapore’s state-owned investment firm, will reorganize its S$434 billion ($338 billion) portfolio from April 1 as part of a major overhaul aimed at sharpening its strategic focus, Bloomberg News reports.
The restructuring will create three new entities: Temasek Global Investments, Temasek Singapore, and Temasek Partnership Solutions. Each entity will focus respectively on the firm’s direct investments in global companies, its Singapore-based portfolio companies, and the management of capital allocations for investment funds. Previously, all investments had been managed by Temasek International, which will retain responsibility for the firm’s corporate and group functions.
As part of the leadership changes, Temasek International’s Deputy CEO Chia Song Hwee will be appointed co-CEO starting October 1, working alongside Temasek CEO Dilhan Pillay. Pillay will serve as chairman of the three new entities as well as Temasek International. Chief Financial Officer Png Chin Yee will take on an additional role as President of Temasek Singapore, while the head of Europe, Middle East & Africa, Nagi Hamiyeh, will also assume the presidency of Temasek Global Investments. Temasek International Chairman Lee Theng Kiat is stepping down.
Temasek, one of the world’s largest sovereign investors, has been seeking to improve returns amid a changing global environment. Its net portfolio value reached a record high as of March 31, the end of its last fiscal year. However, its 10-year total shareholder return of 5% underperformed the MSCI World Index, which posted an annualized 10% return over the same period, Bloomberg previously reported.
The company said the restructuring positions it “for the new global environment,” emphasizing the need to sense changes, adapt its organizational structure, and perform with “greater accountability and alignment.”
Seviora Group will become Temasek’s main asset management platform, with new CEO Gabriel Lim starting September 1. Lim will work with Temasek Partnership Solutions to review the firm’s existing asset management companies, which collectively held over S$90 billion in assets under management as of March 31.
Currently, 36% of Temasek’s portfolio is allocated to Global Direct Investments, 41% to Singapore-based Temasek Portfolio Companies, and 23% to Partnerships, Funds, and Asset Management Companies.
