Singapore — In its annual report, released on Tuesday (Jul 13), state investor Temasek reported that its portfolio reached a record high of S$381 billion for the financial year that ended on Mar 31.
At the end of the last financial year, Temasek’s portfolio was at S$306 billion. This was the first time that that the portfolio decreased since 2016.
Temasek also announced that it posted 24.53 per cent shareholder returns, the highest it’s been since 2010. In the previous year, it recorded negative 2.28 per cent shareholder returns.
Mukul Chawla, joint head of Temasek’s telecoms, media and technology investments, said, “The pandemic has accelerated the longer term trends that shape our investment posture. This is especially so for the digitisation trend.”
According to Asian Investor, Temasek’s pandemic strategy to concentrate on concrete sustainability goals has paid off.
“As global equity markets rebounded strongly from the lows of Mar last year, we saw investment returns boosted by shifts in behaviour resulting from Covid-19.
Our portfolio also benefitted as several of our unlisted companies went public,” said Eddy Ho, director of the enterprise development group, in a video that accompanied Temasek’ annual report.
Temasek is now the 12th largest sovereign wealth fund around the globe.
Moreover, it was the world’s most active state investor in 2020. Having invested a record S$49 billion in a twelve-month period, compared to S$32 billion in the previous year. Temasek also divested a record S$39 billion, in comparison to S$26 billion it divested the previous year.
“The figure of investments (S$49 billion), a 50 per cent more than the previous year, shows strength and [that] they knew how to take advantage of opportunities in the market during the year,” noted Global SWF managing director Diego Lopez.
The latest annual report is the final one for outgoing Temasek Holdings Chief Executive Officer Madam Ho Ching, who is also the wife of Prime Minister Lee Hsien Loong.
By Oct 1, Madam Ho is set to step down. The company announced in Mar that Temasek International chief executive Dilhan Pillay is slated to take her place.
Mr Gary Smith, the managing director of UK consultancy Sovereign Focus, said that Temasek is likely to remain on the same track.
“They will continue to accelerate their move into direct investments and focus on their four themes [digitisation, sustainable living, future of consumption, and longevity].” /TISG
Ho Ching steps down as chairman of Temasek International, but remains as Temasek Holdings’ CEO