Temasek's portfolio value hit $306b in FY2020

The declines were the result of the sharp market contraction in Q1.

Temasek Holdings’ net portfolio value (NPV) is at $306b for the financial year ending 31 March, about 2.2% below the $313b recorded in the previous year, according to its preliminary portfolio performance. Meanwhile, its one-year total shareholder return (TSR) has dropped to 2.3%.

The company’s TSR takes into account all dividends distributed to the shareholder, less any capital injections. Temasek notes that most of the declines were the result of the sharp market contraction in Q1, in response to the onset of COVID-19.

The firm has provided its preliminary portfolio ahead of the September release of its final audited annual consolidated group financials and portfolio performance. It also notes that it ended the year in a net cash position with a strong balance sheet.

Temasek notes that its NPV had been growing steadily and trending well prior to the onset of the pandemic in Q1. Its NPV has tripled over 16 years up from $90b in March 2004 whilst its 16-year TSR was a compounded 7.5% from March 2004 to 2020.

Temasek International CEO Dilhan Pillay notes that the rising geopolitical and trade tensions, as a result of increasing nationalism and protectionism, will create more uncertainties for long term investors and asset owners. However, he remains positive that investors will sharpen their focus in some areas such as digitalisation and healthcare.

He adds that the company aims to build a resilient portfolio as a long term investor and is pleased with their performance despite the effect of the pandemic.