SINGAPORE: Temasek Holdings grew its web portfolio worth by 10.5 per cent over the previous monetary yr to a report S$518 billion (US$401 billion), whilst international geopolitical tensions and market volatility weighed on returns.
The Singapore sovereign wealth fund introduced on Wednesday (July 8) that its web portfolio worth stood at S$518 billion as at March 31, up from S$469 billion a yr earlier on a mark-to-market foundation. Whereas the rise marked one other yr of progress, it was barely under the 11.9 per cent achieve recorded between 2024 and 2025.
This was the primary monetary yr through which Temasek absolutely adopted mark-to-market valuation for its unlisted investments, aligning their worth with prevailing market circumstances. Beneath the earlier ebook worth method, its web portfolio worth would have been S$486 billion.
The most recent efficiency was supported by robust positive aspects from Singapore-listed firms inside Temasek’s portfolio, along with income from a number of divestments, regardless of continued uncertainty in international markets.
Temasek Holdings chief government officer Dilhan Pillay Sandrasegara mentioned the funding setting has develop into more and more difficult, describing it as a “polycrisis world” fairly than one characterised solely by volatility, uncertainty, complexity and ambiguity.
He mentioned the present panorama is probably the most advanced the state investor has encountered previously 5 many years, however added that the corporate had managed to maintain the momentum constructed over current years.
Mr Pillay pointed to a restoration in China and continued power in India, though he famous that alternate charge volatility had made the previous yr more difficult for Indian investments.
He added that the battle within the Center East had affected general efficiency. In keeping with Mr Pillay, returns from Temasek’s public markets portfolio had been “very acceptable” by means of the top of February, however the geopolitical developments subsequently dragged on valuations.
“Our NPV would have been about 2 per cent larger if not for the impression of those occasions on public markets,” he mentioned.
He famous that public market valuations rebounded throughout April and Could, with many of the earlier losses recovered. He mentioned this bolstered Temasek’s confidence that its public market funding technique stays applicable for delivering long-term portfolio efficiency.
Singapore-based firms proceed to type the spine of Temasek’s portfolio, accounting for greater than 40 per cent of its holdings. Main investments embody DBS, Singtel and Singapore Airways.
Throughout the monetary yr, Temasek invested S$51 billion and divested S$31 billion, leading to web investments of S$20 billion.
Trying forward, the corporate mentioned it intends to step up investments in synthetic intelligence, personal credit score and core-plus infrastructure, together with vitality transition initiatives and digital infrastructure belongings that provide larger potential returns than conventional infrastructure investments.
Temasek’s one-year whole shareholder return was 10.5 per cent in Singapore greenback phrases and 14.8 per cent in US greenback phrases. It mentioned the power of the Singapore greenback diminished the one-year return by about two share factors.
Its five-year whole shareholder return stood at 4.6 per cent, reflecting the impression of weaker Chinese language capital markets between 2021 and 2024.
Over an extended horizon, the 10-year shareholder return improved to 7.1 per cent from 5.8 per cent beforehand, whereas the 20-year return eased to six.8 per cent from 7.4 per cent a yr earlier.
Regardless of ongoing geopolitical uncertainty and energy-related disruptions, Temasek mentioned it stays assured in Singapore’s long-term resilience, citing the nation’s robust financial fundamentals and coverage flexibility.
