Temasek Adds U.S. Exposure Regardless of Trade War Outcome
Temasek plans to increase allocations to U.S. markets regardless of the trade war outcome, staying positive and disciplined on its long-term view.
«If the US and China de-link, we still have to grow the Americas,» said Temasek’s head of Americas John Vaske during a recent agriculture summit, underlining conviction in its long-term views irrespective if near-term political factors. «If they operate together collaboratively, we still have to grow the Americas.»
According to Vaske, around 40 percent of every dollar freed in the last three or four years have been redirected to U.S. markets which currently make up around 15 percent of the Temasek portfolio (around $230 billion in assets under management).
Bayer Deal
In recent years, agriculture has been a key focus for Temasek despite challenges such as the acquisition of a Bayer stake which has lost value due to claims against usage of a weedkiller that causes cancer. But Temasek remains confident in the long-term prospects of the investment.
«The investment may take a little longer to play out, and it's certainly had some pressure on people who have a different time-frame than we do, such as short-term investors who can't withstand any sort of downward pressure that this litigation may be causing in the share price,» said Vaske, who is also Temasek’s head of agribusiness.
Moving forward, Vaske noted that Temasek’s agribusiness investments would be skewed towards private markets until Bayer «plays out» due to the risk of public markets being «way too fickle on some of these things».
