SINGAPORE: State-owned investment firm Temasek saw its worst returns since 2016 amid global economic and political difficulties. Temasek posted a 5.2 per cent decrease in the value of its net portfolio to S$382 billion for the financial year ending in March. In 2022, it had been at S$403 billion.
This is the first time since 2020 that the firm has seen a drop in net portfolio value and is only the fifth time that the firm has seen a one-year negative return since 2003. Additionally, Temasek saw a net S$7 billion net group loss for the first time in at least ten years.
But CNBC pointed out that its decline in annual shareholder returns is still relatively favourable, comparatively speaking, against stock market returns around the globe.
Temasek Chief Investment Officer Rohit Sipahimalani is quoted in CNBC as saying, “We have a predominantly equities portfolio, so we can’t be immune to movements in the market.”
“Going forward … it depends on how the market does. We would hope to be more resilient than the market. If you have a recovery in the market, you know, we will do well. And if not, then hopefully we still are building a portfolio that’s not from a one-year perspective, but from a five- to 10-year perspective,” he added.
The firm is among the top ten investors around the globe, and has 63 per cent exposure in Asia, the majority of which is in Singapore and China. It holds stakes in DBS Group and China Construction Bank, among other large companies listed in Asia.
Ms Png Chin Yee, the company’s Chief Financial Officer, said that Temasek is hopeful that the troubles facing the tech sector in China may have ended with signs that a regulatory crackdown is over, Reuters reported.
The firm is an investor in Chinese financial services company Ant Group, founded by Jack Ma. The company had been subjected to hundreds of millions of dollars in fines, but regulators in China have recently said that their attention would turn to the industry as a whole rather than individual companies.
“Ant still has got strong advantages. It has got great technology, it’s got a great track record in innovation. So, once this is sort of behind them, they can really focus on stabilising and growing,” Reuters quotes Ms Png as saying.
Temasek is also eyeing larger investments in South East Asia and India. /TISG
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