Temasek breaks record with net portfolio value of $381b

The state investor divested $39b and invested $49b in the financial year ending 31 March 2021.

Temasek’s net portfolio continued to grow, reporting a record-breaking $381b for the financial year ending 31 March 2021.

This is a $75b increase compared to the previous year. Total shareholder return was at 24.53%.

During the financial year, Temasek invested $49b and divested $39b, both higher than in previous years.

A bulk of its portfolio companies are located in China (27%) and Singapore (24%), followed by the Americas (20%) and Europe, Middle East, and Africa (12%). The Americas accounted for the largest share of new investments made during the year, followed by Singapore and China.

Its underlying exposure to developed economies has increased to approximately 60%, encompassing Singapore, North America, Europe, Australia, New Zealand, Japan, and Korea.

Industry-wise, financial services and telecommunications, media and technology (TMT) continue to be the top two sectors in Temasek’s portfolio, at 24% and 21%, respectively. However, Temasek noted that their compositions have changed significantly during the last decade, partially driven by digitisation.

Moving forward, the state investor plans to shape its portfolio for resilience in anticipation of future threats and opportunities. It set a goal to sustain its performance, generate risk-adjusted returns over the long term, and mitigate climate risks.

Temasek has also committed to participate in the rights issues of Olam and Sembcorp marine.