What Singaporeans need to know about Temasek's preliminary portfolio performance 2020
PHOTO: Temasek Holdings
PUBLISHED ONJuly 30, 2020 2:44 AMByMing Feng
Temasek has just announced its preliminary portfolio performance for its last financial year (ending March 31, 2020).
Do note that the final audited, annual consolidated group financials and portfolio performance for the year will only be released in September.
Here are some take away from this announcement.
Portfolio value of $306 billion
Temasek reports a preliminary net portfolio value (NPV) of $306 billion as at March 31, 2020.
We see a slight decrease in One-Year Total Shareholder Return (TSR) of 2.3 per cent, which seems reasonable for such a climate. Most people would have expected a worse result.
Do note that TSR takes into account all dividends distributed to the shareholder, less any capital injections.
Over the last 16 years
If we zoom out to have a longer-term view on this, Temasek's net portfolio value (NPV) tripled over the last 16 years. From S$90 billion as at March 31, 2004.
Shareholders have also enjoyed a compounded return of 7.5 per cent from March 31, 2004 to March 31, 2020.
Temasek portfolio vs indexes around the world
To give a better comparison of the performance of Temasek Portfolio, we take a look at the performance over the last financial year.
| Portfolio/ Indices | Performance over the last financial year |
|---|---|
| Temasek Portfolio | -2.3 per cent |
| MSCI World Index | -5.8 per cent |
| MSCI Asia ex-Japan Index | -9.0 per cent |
| MSCI Singapore Index | -18.3 per cent |
Temasek's Net Portfolio Value (NPV) over the years
| As at March | Net Portfolio Value |
|---|---|
| 2020 | $306 Billion |
| 2019 | $313 Billion |
| 2018 | $308 Billion |
| 2017 | $275 Billion |
| 2016 | $242 Billion |
| 2015 | $266 Billion |
| 2014 | $223 Billion |
| 2013 | $215 Billion |
| 2012 | $198 Billion |
| 2011 | $193 Billion |
Here's the Net Portfolio Value (NPV) of Temasek over the past 10 years:
| As at March | Net Portfolio Value |
|---|---|
| 2020 | $306 Billion |
| 2019 | $313 Billion |
| 2018 | $308 Billion |
| 2017 | $275 Billion |
| 2016 | $242 Billion |
| 2015 | $266 Billion |
| 2014 | $223 Billion |
| 2013 | $215 Billion |
| 2012 | $198 Billion |
| 2011 | $193 Billion |
Temasek's total share return as at March 31, 2020
Here's the Total Shareholder Return:
| Duration | TSR in S$ terms |
|---|---|
| Since inception (1974) |
14 per cent |
| 20-year | 6 per cent |
| 16-year (since 2004) |
7 per cent |
| 15-year | 6 per cent |
| 10-year | 5 per cent |
| One-year | -2.28 per cent |
Overall, Temasek's portfolio has been quite resilient to crises as compared to some of the indexes in terms of past performance. While past performances do not necessarily depict future performances, we thought the track record seems rather healthy.
There are definitely things we can learn from the way Temasek invests.
This article was first published in Seedly.