Temasek Reports Record Net Portfolio Value Of S$275 Bln

SINGAPORE, July 11 (Bernama) -- Singapore’s investment arm, Temasek Holdings, has reported a record net portfolio value of S$275 billion (S$1=US$0.722) as of March 31, 2017, up S$111 billion over a decade. Temasek’s one-year Total Shareholder Return (TSR) was 13 per cent, while the TSR compounded annually since its inception in 1974 was 15 per cent. Dividend income from its portfolio was S$7 billion, about 19 times its interest expense for the year. “While the global recovery is gaining momentum, there are still uncertainties, both in the medium as well as longer term, said Temasek Chairman, Lim Boon Heng in the Annual Temasek Review published here Tuesday. “We have maintained an investment stance that is disciplined but nimble, and built a balance sheet that enables us to capitalise on opportunities and withstand shocks,” he added. As an active investor, Temasek continued to reshape its portfolio during the year, while adopting a measured and disciplined investment pace. “We put a focus on private and negotiated opportunities, in view of our global outlook and rich equity market valuations in key markets,” said Executive Director and Chief Executive Officer, Temasek International, Lee Theng Kiat. He said Temasek invested S$16 billion and divested S$18 billion of its portfolio last year, resulting in a net divestment position for the first time since March 2009. Temasek’s active investment stance saw S$206 billion invested over the last 10 years along with S$151 billion in divestments. This contributed to a S$111 billion rise in our net portfolio value over the last decade, notwithstanding the significant impact of the Global Financial Crisis in 2008/09, said Lee. He said Temasek continued to focus on new longer term opportunities such as technology, life sciences, agribusiness, non-bank financial services, consumer, and energy and resources. Over the last six years, Lee said Temasek’s investments in these new focus areas had risen from 8.0 per cent of its portfolio to 24 per cent in 2016. As part of its “investing for the future”, the major sectors for its investments during the year were telecommunications, media and technology, transportation and industrials, life sciences and agribusiness. Temasek continued to make investments in Asia with Singapore accounting for the largest share, driven by its increased stake in Singtel, a telecommunications provider worth S$1.6 billion and SMRT Corp, a land transport operator at S$1.2 billion. Elsewhere, it invested in India, China and South Korea during the year under review. On “reshaping its portfolio”, Temasek investments stance has helped it reshape and rebalance its portfolio towards longer term trends, including newer emerging ones. Its key divestments during the year included Synchrony Financial, Bharti Airtel, LafargeHolcim and Evonik Industries, as well as part of its stake in Intouch Holdings. While it divested part of its holdings in Alibaba, Univar and China Construction Bank, Temasek still retains significant exposures in these companies. “Going forward, we expect the more synchronised global growth we’ve seen over the past year to continue, driven by key markets in both mature and growth economies,” said its Head, Strategy and Senior Managing Director, Portfolio Strategy & Risk Group, Michael Buchanan. “There are some political and geopolitical risks on the horizon, as well as some downside scenarios, but overall, we are cautiously confident that the various key economies will weather their medium term challenges,” he added. -- BERNAMA