Temasek wants to make money for retail investors or from them?

Temasek appears to be as desperate as PAP to raise funds. (Temasek unit to open private equity door for retail investors)

The sources of funds for private equity firms are usually wealthy/institutional investors such as pension funds.  It is strange for Temasek to turn to retail investors, ie Ah Kow and Ahmad in the street.

To help retail investors earn higher returns, Temasek subsidiary Azalea Investment Management (AIM) will introduce a new “bond-like” instrument.

In 2016, AIM pioneered a similar “bond-like” instrument, “Astrea III”, comprising 3 tranches of bonds which paid fixed interest of between 3.9% and 6.5%”.  The higher the interest, the higher the risks.

Product salesman for upcoming instrument is AIM Chairman Teh Kok Peng. Teh was with MAS from 1981 to 1999 and promoted to GIC from 1999 to 2011. In short, Teh has not worked in the real private sector for the past 37 years.

Directors at AIM (unrelated to the $2 PAP company) include former employees of Temasek Holdings, DBS, Lee and Lee and GIC: all PAP-linked companies.

Most PAP book smarties cannot make it in the real world and are reliant on tax dollars for a living.

Is Temasek really trying to help retail investors earn higher returns?  Of course not.  Investors will be taking all the risks while AIM will earn pow chiak management and high performance fees.

When Temasek has to resort to selling to retail investors with free MSM advertisements, the public should be wary.

Investors would do well to read AIM’s fine print on its brochure many times over before committing their hard-earned savings.  Better still, don’t even bother.


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4 Responses to Temasek wants to make money for retail investors or from them?

  1. Sinkie says:

    Don’t bother. These are setup as independent companies known as special investment vehicles. Famous examples are Minibonds, Pinnacle notes, High notes etc.

    Legally they are separate from the issuing company — if anything goes bad, you are on your own. Azalea & Temasek is not obliged to be responsible. Just like banks & insurers & investment houses that sold those securitised subprime CDOs in 2007 and 2008.

    In today’s environment, any so-called “bond” paying >= 5% coupon is basically subprime junk bond.

  2. Boy Keppel’s fine and ongoing RICO court case and that other company banned by World bank must really hit us hard. Really hard for Temask ro create this scheme

  3. One of Many Victims says:

    Just plain common sense. Never trust an organization that renegaded the promises of CPF and HDB.

    • Phillip Ang says:

      Our super kiasu elites let others assume the risk and they earn from guaranteed fees. Temasek linked companies were mostly set up using a large chunk of CPF monies. If PAP was concerned, returns from GLCs would have been used to reward CPF members. Profits and dividends from SingTel and PSA already tens of billions which they kept for themselves.

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