What Singaporeans need to know about Temasek's preliminary portfolio performance 2020

PHOTO: Temasek Holdings

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

PHOTO: Seedly 

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
PHOTO: Seedly 

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