Temasek Continues Investment Shift, Reaches Net Portfolio Value of S$ 275 Billion
Singapore’s Temasek Holdings issued their 2016 annual review, the Temasek Review, revealing a record net portfolio value of S$ 275 billion. The sovereign investor generated dividend income of S$ 7 billion for the year ended March 31, 2017 – a figure 19 times Temasek’s interest expense for the entire fiscal year. Since 2014, Temasek had been realigning its gargantuan portfolio, with a slight drift away from large Chinese investments, while making tactical bets in U.S. and Indian investment opportunities. Remarks in the annual review by Temasek International Executive Director and CEO Lee Theng Kiat, “As an active investor, we continue to reshape our 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.”
The Asian state-owned institutional investor has flexibility in taking significant positions in companies. For example, Temasek’s largest single name concentration in its portfolio remains Singtel at about 12% of the portfolio, versus making up 18% of it from March 2007. Asia ex-Japan remains the largest geographic concentration in Temasek’s portfolio, with 29% and 25%, going to Singapore and China respectively.
Reducing Exposure in Traditional Industries
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