Singapore’s renowned investment giant, Temasek, is making headlines yet again. This time, the company has reported a staggering increase in its net portfolio value, soaring to an impressive $434 billion for the financial year ending on March 31, 2025. The significant surge of $45 billion from the previous year has not only captured attention but also set a new record high for Temasek.
What caused this substantial growth in Temasek’s portfolio value? The answer lies in the outstanding performance of its listed Singapore-based portfolio companies and direct investments made in key markets such as China, the United States, and India. These strategic investments have proven to be lucrative for Temasek, contributing significantly to its overall financial success.
“Temasek’s incredible rise in net portfolio value showcases the strength and resilience of our investment strategy,”
remarked a spokesperson from the company.
“We are delighted to achieve this milestone and attribute our success to the outstanding performance of our diverse portfolio.”
The concept of net portfolio value is crucial in understanding an investment entity’s true worth. It represents the total market value of listed assets combined with the book value of unlisted assets within an investment portfolio after deducting any liabilities. This figure provides stakeholders with a clear snapshot of the actual value of an organization’s investments at a specific point in time.
Furthermore, evaluating Temasek’s long-term performance reveals interesting insights into its trajectory over different timeframes. The 20-year total shareholder return (TSR) remained steady at 7 per cent for two consecutive years—a testament to Temasek’s consistent growth strategy and prudent investment decisions.
On a shorter timeline, the one-year TSR saw a remarkable uptick to 11.8 per cent compared to just 1.6 per cent during FY2024. This surge was primarily driven by robust performances from Temasek’s Singapore-based companies alongside strong returns from key markets like the US, China, and India.
While analyzing their unlisted assets through mark-to-market valuation practices, Temasek witnessed another notable increase in net portfolio value—reaching $469 billion with a $35 billion escalation compared to the previous year.
In shedding light on their diversified investments across various sectors and geographies, Chia Song Hwee—the deputy chief executive at Temasek—underscored their commitment towards active engagement with Singapore-based companies:
“Our focus on strengthening business foundations and driving value creation underscores our dedication towards maximizing returns over time.”
With 41 per cent of its portfolio invested in Singapore-based entities including major players like DBS Bank and Singtel; another 36 per cent allocated towards global direct investments; and remaining holdings distributed among partnerships and asset management firms—it is evident that Temasek maintains a well-diversified investment approach tailored for sustainable growth.
As Rohit Sipahimalani—Temasek’s chief investment officer—points out:
“Our strategic investments across key markets like China, US, and India have been pivotal contributors to our enhanced net portfolio value.”
This underscores not just short-term gains but also aligns with long-term structural trends driving market opportunities globally.
Looking ahead into future prospects amidst geopolitical uncertainties,Temask remains cautiously optimistic about continued growth opportunities while acknowledging potential risks that could impact global economic landscapes.Well-positioned as oneofthe leadinginvestment powerhousesin Asiaandbeyond,Temask remainsafirmfavouredbyinvestors worldwideforitsconsistentperformanceandstrategicinvestmentapproach.
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