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AsiaOne
09-07-2025
- Business
- AsiaOne
Temasek sees $45b rise in net portfolio value to record high of $434b amid global uncertainties, Money News
Despite global uncertainties, Singapore investment company Temasek's net portfolio value saw an increase of $45 billion for the financial year ending March 31, 2025 compared to a year ago. It came in at a record high of $434 billion, mainly due to the strong performance of listed Singapore-based Temasek portfolio companies and direct investments in China, the United States and India, the company said on Wednesday (July 9). Net portfolio value is the total market value of listed assets and the book value of unlisted assets in an investment portfolio excluding any liabilities — a clear indicator of the actual worth of the portfolio at a given point in time. Temasek's 20-year total shareholder return (TSR) — a measure of its long-term portfolio performance — stayed at seven per cent for two years straight. But the one-year TSR came in at 11.8 per cent — up from 1.6 per cent in the previous financial year. This was also driven by the performance of Singapore-based portfolio companies and strong returns in the US, China and India, said Temasek. Singapore remains biggest market Singapore remains its biggest market, accounting for 27 per cent of its underlying assets in financial year 2025. Additionally, 52 per cent of Temasek's portfolio companies are also headquartered here. Temasek's deputy chief executive Chia Song Hwee said the strong performance of its Singapore-based portfolio companies shows its progress in executing strategies aligned with their "stated targets". "It affirms our ongoing active engagements with them to strengthen their business foundations, pivot and de-risk where necessary, and drive value creation," he said. "We have been sharpening our investment discipline through more active portfolio management and will maintain this rigorous approach to enhance our returns over the long term." Forty-one per cent of Temasek's portfolio is in Singapore-based companies, including household names like DBS Bank, Singapore Airlines and Singtel. Another 36 per cent is in global direct investments into established or emerging market leaders such as Shopee parent Sea and investment giant BlackRock, which align with the four structural trends of digitisation, sustainable living, the future of consumption and longer lifespans. The remaining 23 per cent of the portfolio is held in partnerships, funds and asset management firms. After Singapore, the Americas are Temasek's second-biggest market at 24 per cent, followed by China at 18 per cent, Europe, the Middle East and Africa at 12 per cent, and India at eight per cent. Temasek chief investment officer Rohit Sipahimalani said the firm's direct investments in markets like China, the US and India contributed to raise its net portfolio value over the year. "The growth reflects both the impact of shifting macroeconomic conditions on asset prices and the long-term prospects of our investments aligned with structural tailwinds in these markets," he said. Geopolitical tensions will affect growth It said geopolitical tensions are a key risk and will likely dampen global growth. But it continues to hold a "constructive outlook" on investment opportunities, despite heightened trade and geopolitical uncertainties. Temasek noted that the US remains a key investment destination while it continues to diversify through its investments primarily in Europe, China and India. Singapore's economy may come under pressure this year, the company said, but the Republic "ample fiscal and monetary policy levers that can be pulled" in the event of a more challenging growth backdrop. [[nid:718805]]
Business Times
09-07-2025
- Business
- Business Times
Temasek to increase exposure in AI, core-plus infrastructure
[SINGAPORE] Singapore investment company Temasek is increasing its exposure to 'promising opportunities' in artificial intelligence (AI) and core-plus infrastructure. AI is a 'two-decade opportunity' with the potential to transform industries, said Chia Song Hwee, the deputy chief executive officer of Temasek. Core-plus infrastructure 'provides resilient, risk-adjusted returns and stable cash use', said Temasek's management in a media briefing for the launch of its annual Temasek Review released on Wednesday (Jul 9). These asset classes are part of Temasek's global direct investments, which make up 36 per cent of its portfolio. Temasek's Singapore-based portfolio companies and partnerships with other investors and asset management companies make up 41 and 23 per cent of its portfolio, respectively. In the AI space, Temasek is looking to increase its opportunities across the value chain. This includes AI companies that are growing at an 'exponential pace', physical infrastructure to support AI and emerging AI innovators that can disrupt the market. Some of the companies that Temasek has already invested in include chipmaker Nvidia and software company Intapp. Temasek has set up AI-related ventures which can work with its portfolio companies to improve their value. For example, it founded software company Aicadium in 2021 to provide AI solutions to companies. It has also invested in AI funds such as AI Infrastructure Partnership, which is backed by Microsoft and BlackRock. Core-plus infrastructure Temasek is also looking at core-plus infrastructure, a type of infrastructure asset class that is riskier than traditional infrastructure, but safer than growth infrastructure investments. They include assets such as data centres, infrastructure to support energy transition infrastructure and ageing infrastructure that needs to be replaced. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Temasek is deploying its capital into this asset class in a few ways. It is doing so directly through its portfolio companies that have deep expertise in the area and through investments in funds. It is also partnering global investors, such as in its partnership with Brookfield to acquire a stake in French renewable energy producer Neoen. Lim Ming Pey, the chief of staff at Temasek's executive office, told The Business Times that when it comes to its global direct investments, Temasek prefers to invest in companies that have a track record of stable cash flow, have access to a large domestic market, and have a relatively resilient supply chain. 'Such companies are better protected against the risk of tariffs or other geopolitical impacts,' said Lim. In the past year, Temasek has invested in Indian snack company Haldiram's, Neoen and China's largest restaurant operator Yum China. Alternative assets will also be an 'important return driver' for Temasek in the years ahead, said Lim. These assets mostly form the third segment of its portfolio, which consists of investments in funds, partnerships with other investors and asset management companies. Alternative investments help to diversify Temasek's portfolio beyond equities and potentially generate higher risk-adjusted returns. To that end, Temasek is increasing its exposure in areas such as private credit and hybrid solutions, private equity funds, as well as liquid alternatives and uncorrelated strategies that include hedge funds, closed block insurance and royalties.
Business Times
09-07-2025
- Business
- Business Times
DBS, Singtel help lift Temasek's portfolio to record S$434 billion
[SINGAPORE] Temasek posted a record net portfolio value (NPV) of S$434 billion for the financial year ended Mar 31, driven by the strong performance of its Singapore-based portfolio companies such as DBS and Singtel . 'Their robust returns have uplifted our portfolio value and provided liquidity for our investment activities,' said Lim Ming Pey, chief of staff at Temasek's executive office. The state investor's portfolio also received a boost from its direct investments in China, the US and India. This year's NPV marks a S$45 billion increase from the S$389 billion recorded in the previous financial year, and surpasses the previous high of S$403 billion posted in FY2022. Temasek's NPV climbs further to S$469 billion when the value of its unlisted assets is marked to market. The figures were unveiled on Wednesday (Jul 9) at the launch of the annual Temasek Review report, which covers Temasek's performance overview, performance highlights as well as its group financial summary for the latest financial year. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Temasek's returns, and those from sovereign wealth fund GIC and the Monetary Authority of Singapore, account for the second-biggest source of funding for Singapore's Budget in the form of Net Investment Returns Contribution (NIRC). For the financial year ended Mar 31 2024, the NIRC was about S$24 billion. Temasek delivered a one-year total shareholder return (TSR) of 11.8 per cent for FY2025, a sharp increase from 1.6 per cent the year before and its strongest one-year return in four years. However, Chia Song Hwee, the deputy chief executive officer of the state investor, stressed that short-term performance was largely influenced by market volatility. Temasek noted its longer-term TSRs, which it considers a better reflection of its investment performance, remained resilient. Its 10-year TSR came in at 5 per cent, down slightly from 6 per cent the previous year as figures from 2015, which was a strong year, dropped out from the measurement period. Meanwhile, the 20-year TSR remained unchanged at 7 per cent when compared with FY2024. Overall, Temasek ended the financial year in a net cash position. The state investor noted that this gives Temasek the 'flexibility to capitalise on market dislocations and emerging opportunities'. Household names among top performers As at Mar 31, 2025, the bulk of Temasek's portfolio, or 41 per cent, consists of its Singapore-based portfolio companies. These are companies that Temasek holds direct investments in. The rest of Temasek's portfolio comprises global direct investments (36 per cent); and investments in funds, partnerships with other investors, and asset management companies (23 per cent). Some of its direct investments are in established or emerging market leaders that generate stable cash flows and earnings with manageable exposure to trade tensions. Examples include Indian snack company Haldiram's, French renewable energy producer Neoen, and China's largest restaurant operator Yum China. Temasek's investment partnerships also include its participation in the AI Infrastructure Partnership established by BlackRock, Global Infrastructure Partners, Microsoft, and MGX Fund Management. Household names such as DBS, Singtel and ST Engineering were among the top performers in Temasek's Singapore-based portfolio companies in the past year. Local bank DBS saw its share price rise more than 20 per cent in the past year, while telco Singtel gained around 40 per cent. Defence technology company ST Engineering nearly doubled in value over the same period. Temasek's chief financial officer Png Chin Yee attributed the strong performance not only to favourable market conditions, but also a 'multi-year effort' by their management to keep their businesses relevant. 'Our (Temasek) teams have also worked very closely with the boards and management (of the portfolio companies) on a range of issues,' added Png. These issues included strengthening their business foundation and setting longer-term financial plans. Building resilience Even as Temasek turned in a record year, NPV can fluctuate over the year due to market volatility. This is why Temasek aims to build a portfolio that can be resilient across economic cycles over the long term, said Png. She also flagged potential headwinds in the year ahead. Png noted that some of its Singapore-based portfolio companies may face pressure from falling interest rates. To that end, Temasek is working closely with its portfolio companies to ensure that they maintain strong balance sheets. Some ways it does so is through stress tests to assess which companies need more capital in the face of external shocks, and engaging companies ahead of their debt maturity. Companies themselves are also taking proactive steps. For instance, DBS is ramping up its non-interest income streams to cushion the impact of falling rates, said Png. Geographically, Singapore continued to anchor Temasek's portfolio, accounting for 27 per cent. The Americas, including the US, made up 24 per cent, while its exposure to China stood at 18 per cent. Its allocation to Europe was 12 per cent. Looking ahead, Temasek's CEO Dilhan Pillay, said that global uncertainty and artificial intelligence will 'transform and disrupt' many industries in this decade. The climate crisis also continues to be an existential threat to humanity. 'As an organisation, we will continue to adapt and retool to seize opportunities in the evolving business and investment landscape, actively managing our exposures in our three portfolio segments to enhance resilience and deliver sustainable returns over the long term,' he added.
Straits Times
09-07-2025
- Business
- Straits Times
Temasek looking for opportunities in new areas like AI
Sign up now: Get ST's newsletters delivered to your inbox Temasek said this is part of building a resilient portfolio that can deliver sustainable gains over the long term. SINGAPORE – Emerging areas like artificial intelligence (AI) have caught the eye of Singapore's investment company Temasek, as it seeks opportunities in firms along the AI value chain. In its Temasek Review 2025 released on July 9, it said it is looking at new areas such as AI and core-plus infrastructure, which refers to an emerging asset class that includes digital infrastructure and energy transition assets. These are part of its efforts to build a resilient, future-ready portfolio that can deliver sustainable gains over the long term. Temasek chief investment officer Rohit Sipahimalani said: 'There is a significant need for capital and opportunities, particularly around AI and related to energy, and in some areas, there's a need for upgrading infrastructure.' When it comes to AI, Temasek is investing in leading companies that have reached break-out scale. It is looking into businesses that enable the broader AI ecosystem, such as data centres and innovative early-stage firms. Temasek deputy chief executive officer Chia Song Hwee said: 'There are many layers to this. We are not trying to take excessive risks. For some of the businesses – while AI is talked up a lot, they are businesses that are actually quite diversified. Like Nvidia, with or without AI, these businesses are strong fundamentally and market leaders.' He added that the riskier side is investing in companies that do business in the application of AI, with many start-ups in that space. Top stories Swipe. Select. Stay informed. Singapore Singapore to hire 1,000 new educators annually in the next few years, up from 700 Business Temasek reports $45 billion rise in net portfolio value to $434 billion Singapore Pritam's appeal against conviction, sentence over lying to Parliament set for Nov 4 Asia Why Japan and South Korea are on different paths in the latest US trade salvo Singapore Female primary school teacher allegedly committed sex acts with underage male student Opinion Hyper-competitive classrooms feed the corporate world's narcissist pipeline Singapore Man charged after he allegedly threw glass bottle at bus window, injuring passenger Singapore Police officer taken to hospital after motorcycle accident on PIE 'For smaller start-ups, we will apply (more) stringent evaluation and be more careful,' he said. The opportunity is huge and Temasek will be selective, working with venture capital funds and participating in later funding rounds when it sees breakout opportunities. When it comes to start-ups, Temasek has about 5 per cent of its portfolio in early-stage investments. It caps its exposure to this segment at 6 per cent of its overall portfolio value as part of its risk management framework. Mr Sipahimalani said Temasek will continue investing in start-ups, but with the strategy of going in during the later funding rounds. Temasek has reaped good returns from investing in companies at an earlier stage in the past, such as Alibaba, he added. 'They ended up being big winners for us as we doubled down on them,' he noted. For companies with very disruptive technologies like nuclear fusion, Temasek will track them and double down on them if there are breakouts. He noted that the current environment for early-stage investments is challenging, with rising interest rates and higher mortality rates of companies. This is why the bulk of Temasek's early-stage capital will be when the business model of the company is proven and it reaches its later funding stages, he said. Temasek is also investing in AI through partnerships like the AI Infrastructure Partnership established by BlackRock, Global Infrastructure Partners, Microsoft and MGX, which seeks to invest in new and expanded AI infrastructure. When it comes to the core-plus infrastructure segment, Temasek is looking at opportunities in sectors such as data centres and energy transition. Companies in these sectors can provide resilient returns and steady cash yields, it said. Some of its portfolio companies like Sembcorp and PSA already operate in this segment, with deep infrastructure domain expertise. Temasek is diversifying its portfolio with alternative assets, beyond traditional equities. For example, it is looking into private credit and hybrid solutions, which help underserved borrowers who are not covered by traditional credit providers such as banks. Temasek created Aranda Principal Strategies to tap opportunities in this space, which now manages a $10 billion portfolio of direct investments and funds. Temasek invests in top-tier private equity funds, such as EQT, alongside other alternative strategies and hedge funds. Looking ahead, Temasek said it is able to face uncertainties and geopolitical volatility, and it expects tariffs to have 'minimal impact' on its portfolio companies. Mr Sipahimalani said Temasek has recognised in the last few years that there has been a global trend towards being nationalistic and protectionist. 'In the last few years, we have been focused on directing our portfolio towards companies which have access to large domestic markets and which are relatively self-sufficient in terms of technology supply chain, within one geo-economic sphere of influence,' he added. For instance, Temasek has invested in hospitals, banks and consumer businesses in India that are not directly affected by geopolitics. It has invested in consumer brands in China and software or fintech in the US. 'That is why when we do our own stress assessment, the first order of impact of tariffs is very minimal on our portfolio companies,' he said, but added a caveat that whatever impacts global growth will also have an impact on all companies. Chief financial officer Png Chin Yee said: 'The new world of investment requires us to understand geopolitics and make sure that we factor that into our investment (considerations). 'So it is here to stay, and we know the attributes of the companies that will be better-positioned amid this new investment world.'
Straits Times
09-07-2025
- Business
- Straits Times
Temasek reports $45 billion rise in net portfolio value to $434 billion
Sign up now: Get ST's newsletters delivered to your inbox The increase was mainly due to the strong performance of Temasek's listed Singapore-based portfolio companies and direct investments in China, the United States and India. SINGAPORE – Singapore investment company Temasek's net portfolio value came in at $434 billion for the financial year ended March 31, 2025, up $45 billion from a year ago. The increase was mainly due to the strong performance of listed Singapore-based Temasek portfolio companies and direct investments in China, the United States and India, the company said on July 9, adding that the $434 billion net portfolio value is a record high. Net portfolio value represents the total market value of all the assets in an investment portfolio minus any liabilities. It provides a clear picture of the actual worth of the portfolio at a given point in time. In a measure of Temasek's long-term portfolio performance, the 20-year total shareholder return (TSR) stayed at 7 per cent for a second year straight. The one-year TSR, which is more volatile, came in at 11.8 per cent, up from the 1.6 per cent in financial year 2024, driven by robust performance from Temasek's Singapore-based portfolio companies, as well as strong returns in the US, China and India. The 10-year TSR came in at 5 per cent, down slightly from 6 per cent the year earlier, as the strong returns from March 2015 – a year of favourable market performance – dropped out of the measurement period. When it comes to marking its unlisted assets to market, Temasek's net portfolio value hit $469 billion, an increase in value of $35 billion from a year ago. Top stories Swipe. Select. Stay informed. Singapore Singapore to hire 1,000 new educators annually in the next few years, up from 700 Singapore Pritam's appeal against conviction, sentence over lying to Parliament set for Nov 4 Asia Why Japan and South Korea are on different paths in the latest US trade salvo Singapore Female primary school teacher allegedly committed sex acts with underage male student Opinion Hyper-competitive classrooms feed the corporate world's narcissist pipeline Singapore Man charged after he allegedly threw glass bottle at bus window, injuring passenger Singapore Police officer taken to hospital after motorcycle accident on PIE Mark-to-market value is an accounting practice that involves recording the value of an asset according to its current market price, rather than its book value or original cost. The investment company has been disclosing the mark-to-market value of its unlisted assets since 2022. Temasek's listed investments comprise 51 per cent of its investment portfolio. Temasek's deputy chief executive Chia Song Hwee said the firm's Singapore-based portfolio companies' strong performance this year demonstrates their progress in executing strategies aligned with their 'stated targets'. 'It affirms our ongoing active engagements with them to strengthen their business foundations, pivot and de-risk where necessary, and drive value creation,' he said. 'We have been sharpening our investment discipline through more active portfolio management and will maintain this rigorous approach to enhance our returns over the long term.' Of Temasek's portfolio, 41 per cent is in Singapore-based Temasek portfolio companies, which include household names such as DBS Bank, Singapore Airlines and Singtel. Another 36 per cent is in global direct investments, which are established or emerging market leaders aligned with the four structural trends of digitisation, sustainable living, the future of consumption and longer lifespans. These firms include Shopee parent Sea and investment giant BlackRock. The remaining 23 per cent of the portfolio is held in partnerships, funds and asset management firms, including entities such as venture capital firm Vertex, asset management group Seviora and private equity firm 65 Equity Partners. Singapore remains the biggest market for the company, accounting for 27 per cent of its underlying assets in financial year (FY) 2025. A total of 52 per cent of Temasek's portfolio companies are also headquartered in Singapore. The Americas are Temasek's second-biggest market at 24 per cent, while the company's underlying exposure to China dipped slightly to 18 per cent from 19 per cent a year earlier. Exposure to Europe, the Middle East and Africa stood at 12 per cent, and India at 8 per cent. Temasek chief investment officer Rohit Sipahimalani said the firm's direct investments in markets like China, the US and India contributed to the uplift in its net portfolio value over the year. 'The growth reflects both the impact of shifting macroeconomic conditions on asset prices and the long-term prospects of our investments aligned with structural tailwinds in these markets,' he said. 'We will continue to actively invest in our key markets while also exploring new markets of scale that can add to our portfolio resilience.' In FY2025, the company invested $52 billion in areas aligned with the four structural trends of digitisation, sustainable living, the future of consumption and longer lifespans. It divested $42 billion, which included a full divestment in liquefied natural gas company Pavilion Energy as well as partial divestments in fashion firm Moncler, food technology company Eternal (formerly known as Zomato) and Fullerton Financial Holdings. Temasek said these divestments allowed the firm to recycle capital and continue investing in companies that are aligned to the trends, such as food technology start-up Rebel Foods and snacks company Haldiram's. The result is a net investment of $10 billion, compared with a net divestment of $7 billion in FY2024. Temasek has also made strides in its sustainable investments. Its portfolio value of investments aligned with the sustainable living trend reached $46 billion, up $2 billion from FY2024. Financial services as well as transportation and industrials remain the two largest sectors that Temasek is invested in. The investments are in a mix of listed and unlisted assets, with listed assets accounting for 51 per cent of the portfolio and unlisted assets the remaining 49 per cent. Looking ahead, Temasek said geopolitical tensions remain a key risk, which will likely dampen global growth. But it continues to hold a 'constructive outlook' on investment opportunities, despite heightened trade and geopolitical uncertainties. Temasek noted that the US will remain a key investment destination while the company continues to maintain a diversified global exposure through its investments primarily in Europe, China and India. It also highlighted that Singapore's economy will likely come under pressure this year, but the Republic has 'ample fiscal and monetary policy levers that can be pulled' in the event of a more challenging growth backdrop. To build a resilient portfolio in the Republic, Temasek will continue to actively engage its Singapore portfolio companies to enhance value and future-proof their businesses. It will also work with partners and innovators, creating 'synergistic networks' with them to further grow its capital and gain access to innovation. Temasek chairman Lim Boon Heng said that like Singapore, Temasek and its Singapore portfolio companies have benefited from globalisation, expanding their footprint regionally and beyond. 'Despite increasing global uncertainties, we must remain steadfast in our commitment to building a purpose-driven institution and constructing a portfolio that delivers sustainable returns over the long term,' he said.
