SINGAPORE'S state-owned investment vehicle Temasek Holdings sold all its Bank of America (BoA) shares in the first three months of this year, resulting in estimated losses of between US$2.3 billion (S$3.4 billion) and US$4.6 billion.

Analysts and fund managers said the move was in line with Temasek's tweaking of its long-term investment strategy to focus more on Asia and emerging markets such as Brazil and Russia. It will, in turn, reduce emphasis on developed countries such as the United States and Europe.

A filing with the US Securities and Exchange Commission revealed that Temasek no longer held BoA or Merrill Lynch shares as of March 31.

Temasek should clear the air

It must not shrug off BoA losses as a blip if it is to emerge stronger

By Ignatius Low, Money Editor

What is one to make of Temasek's decision to sell its entire stake in Bank of America (BoA)?
The move has resulted in one of the largest-ever realised losses from a single investment in Singapore's history. The number is so large - at least US$2.3 billion (S$3.4 billion) - that one has to wonder exactly what it was that compelled Temasek to bite the bullet.

After all, outgoing CEO Ho Ching reiterated this week that the investment fund takes a long-term view, at least 10 years and up to 50 years. So it could have well waited a few years for the global economy to recover and cash out then.

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