Temasek’s Net Portfolio Grows S$7 Billion To S$389 Billion, Boosted By US, India

Temasek Holdings reported a S$7 billion (US$5.2 billion) increase in its net portfolio, with investment returns from the US and India providing a boost and offsetting China’s underperformance.

The state investor’s net portfolio was valued at S$389 billion as of Mar 31, up from S$382 billion a year ago, according to its latest annual review released on Tuesday (Jul 9). 

It posted a positive annual shareholder return of 1.6 percent after last year’s negative 5.07 percent, which was its worst since 2016. 

Temasek is one of the three entities that invest Singapore’s reserves, and part of its returns are tapped every year for the government’s annual Budget.

The government can spend up to half of the long-term expected investment returns generated by Temasek, as well as by sovereign wealth fund GIC and the Monetary Authority of Singapore, based on the Net Investment Returns Contribution framework.

The Americas made up 22 per cent of Temasek’s portfolio, second only to Singapore, which stood at 27 per cent.

The figures are roughly similar to the previous year’s, when Americas was 21 per cent and Singapore was 28 per cent.

Its China investments fell from 22 per cent of the portfolio to 19 per cent. China boosted the company’s portfolio returns from 2004 to 2014, but the market’s performance dipped in the next decade. 

Deputy CEO Chia Song Hwee said structural challenges remain in China, despite the government’s pro-growth stance. Temasek focuses on businesses that serve a domestic market, such as biotech, import substitution, electrification and electric vehicle value chain.

CNA

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