Temasek portfolio grows to record $518b, delivers 10-year shareholder return of 7.1%

Temasek Holdings delivered strong results for the latest financial year, achieving a net portfolio value of $518 billion amid a turbulent year marked by global trade tensions.

The Singapore-headquartered investment company released its annual report on Wednesday (July 8) for the financial year ended March 31, highlighting strong long-term returns with a 20-year total shareholder return of 6.8 per cent.

At the same time, Temasek also achieved 10-year total shareholder return of 7.1 per cent, "demonstrating the portfolio's ability to perform through market cycles".

The five-year total shareholder return was comparatively lower at 4.6 per cent however, due to headwinds in Chinese capital markets between 2021 and 2024.

Temasek's portfolio comprises three segments, with around 40 per cent Singapore-based Temasek portfolio companies, 40 per cent global direct investments and 20 per cent Partnerships, Funds, and Asset Management Companies.

According to Temasek's report, around 26 per cent of its portfolio is exposed to the Americas and 17 per cent is exposed to China.

Total exposure to Europe, the Middle East and Africa is around 12 per cent.

During the financial year, Temasek invested a total of $51 billion and divested $31 billion, resulting in a net investment of $20 billion.

"In today's geopolitical environment, resilience is central to our portfolio construction. We look for companies with access to large domestic markets or strong global positions, with competitive advantages and more resilient supply chains," said Rohit Siphahimalani, the chief investment officer at Temasek International.

Looking ahead, Temasek remains focused on building a resilient and forward-looking portfolio, and sees investment opportunities in AI, core-plus infrastructure and private credit.

In particular, it aims to increase AI-related exposure from six per cent of its portfolio to 15 per cent by 2031.

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dana.leong@asiaone.com