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Temasek's milestone year: $389b in net portfolio value and a grand 50th anniversary gift

Temasek's milestone year: $389b in net portfolio value and a grand 50th anniversary gift
(From left) Moderator Lena Goh and Temasek International panellists private equity fund investments real estate deputy head Alpin Mehta, chief financial officer Png Chin Yee, deputy CEO Chia Song Hwee and head of financial services Connie Chan.
PHOTO: The Straits Times

Temasek, one of Singapore's leading investment companies, has announced a significant achievement this year, reporting a net portfolio value (NPV) of $389 billion for the financial year ended March 31, 2024.

This marks a $7 billion increase from the previous year.

Temasek's total value is S$420 billion, using a method called Mark to Market (MTM). This method adjusts the value of their unlisted assets to reflect current market prices.

The increase was mainly due to their investment returns from the US and India, which offset China's underperformance, said the company.

The figures were unveiled on Tuesday (July 9) at the launch of the annual Temasek Review, which covers the company's performance overview as well as its group financial summary for the latest financial year.

NPV represents the market worth of assets within an investment portfolio, minus any liabilities.

What the Chairman said

Temasek's Chairman, Lim Boon Heng, highlighted the significance of this milestone year, stating, "2024 is a special year for Temasek as we commemorate our 50th anniversary. We aspire to do well, do right, and do good for current and future generations."

Sustained long-term returns

Temasek's long-term investment returns have remained robust, with a stable 20-year Total Shareholder Return (TSR) of 7 per cent and a 10-year TSR of 6 per cent.

50th anniversary gift

In celebration of its 50th anniversary, Temasek announced a generous community gift of $150 million, known as T-Spring in June 2024.

This initiative, said the company, is designed to advance skills development, provide scholarships, and support fellowships, demonstrating Temasek's dedication to fostering Singapore's future workforce.

Strategic investment approach

Despite global economic uncertainties, Temasek said it maintained a cautious yet strategic investment approach, investing $26 billion in key sectors such as technology, financial services, sustainability, consumer, and healthcare. 

CEO Dilhan Pillay said: "In an era of unprecedented global challenges, the resilience of our portfolio remains our core strength. We must continue to build for the future, investing in sectors that enable a more sustainable world."

Asset divestments

On the other hand, Temasek divested $33 billion worth of assets, resulting in a net divestment of $7 billion. 

This strategic move was partly due to the redemption of capital by Singapore Airlines and Pavilion Energy.

Commitment to sustainability

This year, Temasek also launched its first-ever Sustainability Report, showcasing their commitment to embedding sustainability in everything they do.

The aim is to reduce its net carbon emissions to half of their 2010 levels by 2030 and achieve net-zero emissions by 2050.

Alpin Mehta, head of real estate and deputy head of private equity fund investments at Temasek, said: "It brings together our disclosures and tracks our progress towards our sustainability objectives. We will uphold our commitment to our strategy for net zero, nature positive, and inclusive growth."

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