Temasek’s portfolio swells beyond $500 billion despite dampening effect global tensions have had on gains

SINGAPORE: Temasek Holdings grew its net portfolio value by 10.5 per cent over the past financial year to a record S$518 billion (US$401 billion), even as global geopolitical tensions and market volatility weighed on returns.

The Singapore sovereign wealth fund announced on Wednesday (July 8) that its net portfolio value stood at S$518 billion as at March 31, up from S$469 billion a year earlier on a mark-to-market basis. While the increase marked another year of growth, it was slightly below the 11.9 per cent gain recorded between 2024 and 2025.

This was the first financial year in which Temasek fully adopted mark-to-market valuation for its unlisted investments, aligning their value with prevailing market conditions. Under the previous book value approach, its net portfolio value would have been S$486 billion.

The latest performance was supported by strong gains from Singapore-listed companies within Temasek’s portfolio, together with profits from several divestments, despite continued uncertainty in global markets.

Temasek Holdings chief executive officer Dilhan Pillay Sandrasegara said the investment environment has become increasingly challenging, describing it as a “polycrisis world” rather than one characterised only by volatility, uncertainty, complexity and ambiguity.

He said the current landscape is the most complex the state investor has encountered in the past five decades, but added that the company had managed to sustain the momentum built over recent years.

Mr Pillay pointed to a recovery in China and continued strength in India, although he noted that exchange rate volatility had made the past year more challenging for Indian investments.

He added that the conflict in the Middle East had affected overall performance. According to Mr Pillay, returns from Temasek’s public markets portfolio had been “very acceptable” through the end of February, but the geopolitical developments subsequently dragged on valuations.

“Our NPV would have been about 2 per cent higher if not for the impact of these events on public markets,” he said.

He noted that public market valuations rebounded during April and May, with most of the earlier losses recovered. He said this reinforced Temasek’s confidence that its public market investment strategy remains appropriate for delivering long-term portfolio performance.

Singapore-based companies continue to form the backbone of Temasek’s portfolio, accounting for more than 40 per cent of its holdings. Major investments include DBS, Singtel and Singapore Airlines.

During the financial year, Temasek invested S$51 billion and divested S$31 billion, resulting in net investments of S$20 billion.

Looking ahead, the company said it intends to step up investments in artificial intelligence, private credit and core-plus infrastructure, including energy transition projects and digital infrastructure assets that offer higher potential returns than traditional infrastructure investments.

Temasek’s one-year total shareholder return was 10.5 per cent in Singapore dollar terms and 14.8 per cent in US dollar terms. It said the strength of the Singapore dollar reduced the one-year return by about two percentage points.

Its five-year total shareholder return stood at 4.6 per cent, reflecting the impact of weaker Chinese capital markets between 2021 and 2024.

Over a longer horizon, the 10-year shareholder return improved to 7.1 per cent from 5.8 per cent previously, while the 20-year return eased to 6.8 per cent from 7.4 per cent a year earlier.

Despite ongoing geopolitical uncertainty and energy-related disruptions, Temasek said it remains confident in Singapore’s long-term resilience, citing the country’s strong economic fundamentals and policy flexibility.