On the Application of NIR Framework

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Will the application of the Net Investment Returns (NIR) framework to Temasek’s expected returns result in any impact on Temasek?

The NIR framework provides rules for determining how much the Government can spend on its Budget, based on the expected long term real rate of returns of the investment entities in the framework.

The inclusion of Temasek’s expected long term returns in the NIR framework does not affect, change or impact:

  • Temasek’s dividend policy;
  • Temasek’s strategies and operations as a long term investor; and
  • Temasek’s special responsibility under the Singapore Constitution to protect Temasek’s past reserves.

The NIR framework does not determine the amount of dividends that Temasek distributes to our shareholder.

The Government has a variety of sources of liquidity and cash flows that enable the Government to manage its liquidity needs independent of the strategies of Temasek, MAS and GIC.

Temasek will continue to declare dividends annually based on the profit we earn, in accordance with our Board-approved dividend policy. The dividend policy balances the sustainable distribution of profits as dividends to our shareholder, with the retention of profits for re-investment and future returns. The policy also takes into account the constitutional requirement to independently protect Temasek’s past reserves.

For further information, please see the 'Ask MOF' section of the Singapore Ministry of Finance website: http://app.mof.gov.sg.

Will the application of the Net Investment Returns (NIR) framework to Temasek’s expected returns require Temasek to pay more cash to the Singapore Government?

The NIR framework does not require Temasek to pay more dividends or cash to the Singapore Government.

The NIR framework provides rules for determining how much the Government can spend on its Budget, based on the expected long term real rate of returns of the investment entities in the framework.

The inclusion of Temasek’s expected long term returns in the NIR framework does not affect, change or impact:

  • Temasek’s dividend policy;
  • Temasek’s strategies and operations as a long term investor; and
  • Temasek’s special responsibility under the Singapore Constitution to protect Temasek’s past reserves.

The NIR framework does not determine the amount of dividends that Temasek distributes to our shareholder.

The Government has a variety of sources of liquidity and cash flows that enable the Government to manage its liquidity needs independent of the strategies of Temasek, MAS and GIC.

Temasek will continue to declare dividends annually based on the profit we earn, in accordance with our Board-approved dividend policy. The dividend policy balances the sustainable distribution of profits as dividends to our shareholder, with the retention of profits for re-investment and future returns. The policy also takes into account the constitutional requirement to independently protect Temasek’s past reserves.

For further information, please see the 'Ask MOF' section of the Singapore Ministry of Finance website: http://app.mof.gov.sg.

Will the application of the Net Investment Returns (NIR) framework to Temasek’s expected returns result in any changes in Temasek’s investment strategy?

Including Temasek’s expected returns in the NIR framework does not change Temasek’s investment strategy as a long term investor, and has no impact on Temasek’s ability to buy, sell or hold assets.

The NIR framework provides rules for determining how much the Government can spend on its Budget, based on the expected long term real rate of returns of the investment entities in the framework.

The inclusion of Temasek’s long term returns in the NIR framework does not affect, change or impact:

  • Temasek’s dividend policy;
  • Temasek’s strategies and operations as a long term investor; and
  • Temasek’s special responsibility under the Singapore Constitution to protect Temasek’s past reserves.

Any changes to Temasek’s strategies or portfolio composition will affect our expected long term returns.

Temasek’s investment strategy is the responsibility of Temasek’s Board and management. Investment and divestment decisions will continue to be based on our intrinsic value tests.

Temasek will continue to focus on delivering sustainable returns over the long term.

The Singapore Government is not involved in the investment, divestment or other business decisions of Temasek. 

For further information, please see the 'Ask MOF' section of the Singapore Ministry of Finance website: http://app.mof.gov.sg.

TEMASEK REVIEW 2017

TEMASEK REVIEW 2017

Investment Themes

Investment Themes

Our investment activities continue to be guided by four investment themes and the long term trends they represent.

PORTFOLIO PERFORMANCE

PORTFOLIO PERFORMANCE

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