Temasek issues new charter

       The Singapore state investor Temasek Holdings Pte downplayed its links to government policy or strategic interests in a revised charter issued yesterday, as it eyes more overseas assets from banks to infrastructure.
       Temasek, one of the world's biggest wealth funds whose sole shareholder is the Singapore government, still has controlling stakes in half the city-state's blue-chip firms such as Singapore Airlines, but it has increased its exposure elsewhere.
       Chief executive Ho Ching said Temasek would still consider taking stakes in Western financials, despite the firm's estimated $4 billion-plus losses after it sold off its stakes in Bank of America and Barclays in the past year.
       "If the opportunity comes, and it looks attractive, yes," Ho said, adding that the fund was also interested in resources as an asset class and saw opportunities in Asian infrastructure.
       She, however, ruled out investing in overseas land for agriculture, as firms linked to South Korea and Middle Eastern firms have done in recent years.
       Ho was speaking at the launch of an updated charter that described the fund as an investment firm managed on commercial principles, dropping a reference to its role to improve the city-state's economic base.
       "Temasek felt the need to emphasise its independence, or perhaps it is prepar-ing to spin itself off as a truly independent unit.... Countries are resistant to investments by politically-linked entities," said David Cohen, director of Asian economic forecasting at Action Economics.
       China Investment Corp (CIC), the $200 billion sovereign fund, has repeatedly assured Western nations and investors that it will become more transparent in its operations and investments amid growing concerns about Beijing's political motives, and last month published its first annual results report.
       The role of wealth funds around the world, which oversee about $3 trillion in assets, changed from a key source of capital for struggling Western banks early in the crisis, to governments redeploying funds to stabilise their home markets this year.
       State Street Global Advisors, one of the world's biggest institutional investors, told Reuters this week such measures would now ease and funds would resume investments for returns.
       Temasek, which has published annual reports since 2004, now describes itself as an investment firm creating longterm value for its shareholder, after being set up in 1974 to hold investments in state firms.
       The updated charter does not include the notes accompanying the first 2002 version stating the government through Temasek - needed to own and control firms deemed critical to the city-state's security, economic wellbeing or public policy.
       "There are very few of these companies left in our stable," said Ho, the wife of Singapore Prime Minister Lee Hsien Loong."We are an investor that is prepared to invest and divest."
       She said initial public offerings of unlisted units, which include firms in strategic sectors such as port operator PSA, grid operator Singapore Power,and television and radio broadcaster Mediacorp, were "still on the table."
       "There is a right time for them to be listed," Ho said, adding that initial public offerings for asset manager Fullerton Fund Management and bank holding company Fullerton Financial Holdings "are also long-term possibilities."
       She also said Temasek could package its private equity investments in infrastructure into business trusts in the next 3-5 years to raise funds as well as to make such assets available to retail investors in Singapore.
       The updated charter does continue to show Temasek's links to the government. For example, the Singapore president's approval is required for the appointment or removal of Temasek's CEO.
       Temasek will release its annual report next month, giving the audited value of its portfolio and investment returns.