(From left to right) Mr Alpin Mehta, Ms Png Chin Yee, Mr Rohit Sipahimalani, Mr Michael Buchanan and Ms Sulian Tay at a media conference for Temasek's annual review on Jul 10, 2018. (Photo: Temasek Holdings)

SINGAPORE: Temasek Holdings on Tuesday (Jul 10) reported a record net portfolio value for the last financial year – its second in a row – though the Singapore investment company flagged the probability of increasing downside risks in the near term and plans to slow its investment pace over the next nine to 18 months.

Its net portfolio value rose to S$308 billion for the financial year ended Mar 31, up $33 billion from S$275 billion a year ago, the Singapore investment firm said in its annual review.

“Our net portfolio value passed the S$300 billion mark for the first time. It is now almost three times the dot-com peak of just over S$100 billion at the turn of the millennium,” said Mr Lee Theng Kiat, CEO and executive director of Temasek International, in a statement.

When asked by Channel NewsAsia for the reasons behind the strong performance, Mr Rohit Sipahimalani, the joint head of its portfolio strategy and risk group, said the portfolio in Asia-Pacific was a key outperformer last year. In particular, banks in the region, especially China, were among the biggest contributors.

Its latest set of numbers also showed one-year total shareholder return at just over 12 per cent. 

Temasek invested S$29 billion and divested S$16 billion of its portfolio from Apr 1, 2017, to Mar 31, 2018 – a reversal from the previous financial year when divestments exceeded investments for the first time since the year ended 2009. Over the last decade, it invested S$203 billion and divested S$150 billion.

It also noted that it ended the year in a net cash position. 

The United States accounted for the largest share of Temasek's investments during the year, followed by China and Europe. Mature economies like these form 60 per cent of Temasek’s portfolio, while growth economies, such as Latin America and Africa, account for the remaining 40 per cent.

Overall, Singapore continued to account for the bulk of Temasek's portfolio at 27 per cent, followed by China at 26 per cent. However, an evolving portfolio means that the Europe and Americas have grown in size and now form almost a quarter of Temasek’s underlying portfolio exposure.

Across sectors, the financial services sector remains the largest at 26 per cent. Telecommunications, media and technology (21 per cent), consumer and real estate (16 per cent), transportation and industrials (16 per cent), life sciences and agribusiness (6 per cent) round up the top five sectors.

More at https://www.channelnewsasia.com/news/business/temasek-net-portfolio-value-hits-high-308-billion-10516384