It's a New Year again, and an old question bugs me: Why is it that the United States doesn't have a modern National Sovereign Fund with a corporate mandate, as some 100 countries do, from good old Russia (RDIF) to newly established (Italy -est. 2011, Georgia -est. 2013 ). SWF Institute map: http://www.swfinstitute.org/sovereignwealthmap.html
The Social Security Fund invests only in Treasury Notes/Bonds yielding an incredibly poor return. Meanwhile a country with a population of 5.3 MM (2013) such as Singapore has a $285 Bn AUM megafund averaging 17% annual returns historically.
"Temasek was established to create and maximize long-term shareholder value as an active investor and shareholder of successful enterprises. As Singapore's economy evolved and became increasingly globalized, Temasek began to invest actively outside of Singapore. Temasek has been assigned an overall corporate credit rating of "Aaa" by Moody's and "AAA" by Standard & Poor's. From an initial portfolio of S$350 million in 1974 made up of various Singapore start-ups, Temasek's investment exposure has grown over the last 30 years into a globally diversified portfolio. Temasek is an active value-oriented shareholder and investor, which seeks to manage its investments to create and maximize shareholder value. Temasek is an active shareholder and aims to achieve sustainable returns by engaging the boards and management of its portfolio companies."
(Quote from: http://www.temasekreview.com.sg/#download,
http://www.temasekreport.com/documents/full_annual_report2010.pdf, http://www.Temasek.com.sg/portfolio/portfolio_highlights/liquidity, Investment Strategy of the Temasek Holding by Joseph Komornik et. al.)