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.