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A Temasek Holdings signage at their Singapore office.
Munshi Ahmed | Bloomberg | fake images
SINGAPORE – Singapore’s state investment company Temasek said on Tuesday that the net worth of its portfolio fell for the first time since 2016 when the coronavirus pandemic hit global markets.
Temasek’s portfolio size fell to S $ 306 billion ($ 223.73 billion) for the financial year ended March 31, about 2.2% down from $ 313 billion. Singapore from the previous year, the company said in its annual report.
Its one-year return to shareholders was minus 2.28%, the company said. But the returns were 5% over a 10-year period and 6% over 20 years, he added. Those returns take into account all dividends paid to Temasek’s shareholder, minus capital injections.
Temasek, an active equity investor in both public and private space, is owned by the government of Singapore, a small but wealthy Southeast Asian nation.
Temasek attributed its investment performance in the past year to the spread of the coronavirus disease, or Covid-19, which caused global markets to crash in March. The company noted that markets have since recovered, but warned of uncertainties such as tensions between the United States and China.
Dilhan Pillay Sandrasegara, CEO and CEO of Temasek International, said both the United States and China have been “important destinations” for the company’s investments in the past five to six years.
He explained that what happens to the relationship between the United States and China can affect other economies and companies that operate globally, and Temasek closely follows developments related to the two economic giants.
Go global
The company, a closely followed global investor, invested primarily in Singapore companies in its early days, but has become a major global investor in recent years. Roughly three-quarters of Temasek’s portfolio exposure is outside its home country and in places like China, North America and Europe. Two-thirds of its underlying exposure is in Asia, according to the report.
Assets in China accounted for 29% of Temasek’s investment portfolio in the last financial year, the largest geographic share. This was followed by Singapore with 24% and North America with 17%, according to the company’s annual report.
In terms of sectors, the investor has the highest exposure to financial services, which accounted for around 23% of the underlying assets in its portfolio.
Temasek said it continued to invest in the financial services, technology and life sciences sectors. Overall, the company invested S $ 32 billion ($ 23.42 billion) and divested S $ 26 billion in the last financial year.
