Singapore’s Temasek Holdings got a little boost, moving up to a S$ 223 billion net portfolio value. Temasek marks its 40th anniversary; however, returns struggled with a 1.5% total shareholder return in Singapore dollars. The previous fiscal year, the sovereign fund inked 8.9%. The reason for lowered performance given in Temasek’s annual report is weakness in key Asian markets.
Lim Boon Heng, the chairman of Temasek Holdings, mentioned in the press release, “This year has been one of our most active years for new investments – the most active since the Global Financial Crisis – driven by softer Asian markets of interest, as well as the continued recovery of the global economy.”
Sovereign Wealth Centering on Dollar Assets
Despite recent major Asian investments like the investment in A.S. Watson Group, Temasek is betting big on America investing in numerous sectors. To adapt, manage investments and find more attractive deals, Temasek is sending boots to the ground in London and New York. Recently, Temasek Holdings flew out its CEO Ho Ching to open up the New York office, along with the Prime Minister of Singapore (whose wife is Ho Ching). The opening fanfare was courted with CEOs and U.S. policymakers. A giving signal for more U.S. investments is the shift in Temasek’s currency holdings. Temasek’s currency mix in assets in U.S. Dollars started at 6 percent in 2013 to 12 percent in 2014.
Investment Wins Over Divestment
In over a decade, Temasek has invested S$ 180 billion while divesting S$ 110 billion. For March 2014 end, Temasek had net investment of S$ 14 billion, compared to S$7 billion in both 2012 and 2013. The last time net investment crossed S$ 10 billion was in 2008 at S$ 15 billion.
Group Net Profit – Temasek Holdings
|Period||Group Net Profit|
|31 March 2014||S$11 billion|
|31 March 2013||S$11 billion|
|31 March 2012||S$11 billion|
|31 March 2011||S$13 billion|
|31 March 2010||S$5 billion|
|31 March 2009||S$6 billion|
|31 March 2008||S$18 billion|
|31 March 2007||S$9 billion|
|31 March 2006||S$13 billion|
|31 March 2005||S$8 billion|
Source: Temasek Holdings