If you know Temasek, you’ll know that it is a highly reputable investment company with a solid track record over the years despite bad market conditions.
So let’s take a deep dive into Temasek’s portfolio performance in 2023 so we can get some useful insights for our own investing journey!
TL;DR: Temasek’s Portfolio Performance 2023
Temasek announced that it closed the financial year ended 31 March 2023 with a Net Portfolio Value (NPV) of S$382 billion. This is a decrease of S$21 billion when compared to Temasek’s portfolio in the year 2022.
Here are some takeaways from this announcement in the year 2023.
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Temasek’s Portfolio Value of S$382 Billion for the Year 2023
Temasek ended the year with a net portfolio value (NPV) of S$382 billion. This is a decrease from the net portfolio value of S$403 billion in the year 2022.
It has also invested S$326 billion during the decade, including S$31 billion worth of investments and S$27 billion worth of divestments this year.
Temasek had a One-year Total Shareholder Return (TSR) of -5.07% to shareholder.
For more context on this performance,
- The Total Shareholder Return since the year 1974, was an annualised return of 14%.
- The 20-year return to shareholder stood at 9%.
- The 10-year return to shareholder stood at 6%.
Do note that TSR takes into account all dividends distributed to the shareholder, less any capital injections.
What Does Temasek’s Portfolio Look Like in the Year 2023?
In case you are wondering how we can learn to invest like Temasek, let us take a look at Temasek’s portfolio to understand what did Temasek invest in and what are some of the changes they have made.
Geographically, Temasek increased their investment in Singapore by 1% while reducing their portfolio allocation in Asia (ex Singapore and China) by 1%.
There are also changes to the portfolio, in terms of sector allocation.
Here’s a comparison of the sector allocation of Temasek’s portfolio in the year 2020, 2021, 2022, and 2023.
| Temasek's Portfolio by Sector | 2020 | 2021 | 2022 | 2023 | Difference between 2022 and 2023 |
|---|---|---|---|---|---|
| Financial Services | 23 | 24 | 23 | 21 | Decrease by 2% |
| Telecommunications, Media and Technology | 21 | 21 | 18 | 17 | Decrease by 1% |
| Transportation and Industrials | 18 | 19 | 22 | 23 | Increase by 1% |
| Consumer and Real Estate | 17 | 14 | 15 | 16 | Increase by 1% |
| Life Sciences and Agri-Food | 8 | 10 | 9 | 9 | No change |
| Multi-Sector Funds | 8 | 8 | 8 | 8 | No change |
| Others (including credit) | 5 | 4 | 5 | 6 | Increase by 1% |
Do note that Temasek ultimately is neither a sovereign wealth fund nor a fund. It is a state-owned investment company and a provider of catalytic capital.
If you are keen on finding out how Temasek’s portfolio did in the year 2022, we have attached our year 2022 coverage below.
Recap: Temasek’s Portfolio Performance 2022
We are two years on, into the impact of the COVID-19 pandemic, and we are still in the midst of overcoming this horrible pandemic.
Around the world, organisations and companies seek to create an inclusive and cohesive work environment that celebrates and values their unique personalities, diverse perspectives, skill sets, and experiences.
On top of that, the focus on sustainability and climate change is more important than ever.
We now see nations and companies looking to put sustainability at the core of their investments. As for Temasek, they look to progress on their target to reduce the net carbon
emissions of their portfolio to half the 2010 levels by 2030, as they aim for net-zero carbon emissions by 2050
Having summarised the broad themes and the challenges that the world faced over the past year, we now dive deeper into the performance of Temasek Holdings.
Temasek’s Portfolio Performance 2022
Temasek announced that it closed the financial year ended 31 March 2022 with a Net Portfolio Value (NPV) of S$403 billion. This is an increase of S$22 billion when compared to Temasek’s portfolio in the year 2021.
Here are some takeaways from this announcement in the year 2022.
Temasek’s Portfolio Value of S$403 Billion for the Year 2022
Temasek ended the year with a net portfolio value (NPV) of S$403 billion. This is an increment from the net portfolio value of S$381 billion in the year 2021.
It has also invested S$315 billion during the decade, including S$61 billion worth of investments and S$22 billion worth of divestments.
It managed to achieve a One-year Total Shareholder Return (TSR) of 5.81% to shareholder.
For more context on this performance,
- The Total Shareholder Return since the year 1974, was an annualised return of 14%.
- The 20-year return to shareholder stood at 8%.
- The 10-year return to shareholder stood at 7%.
Do note that TSR takes into account all dividends distributed to the shareholder, less any capital injections.
What Does Temasek’s Portfolio Look Like in the Year 2022?
In case you are wondering how we can learn to invest like Temasek, let us take a look at Temasek’s portfolio to understand what did Temasek invest in and what are some of the changes it has made.
Geographically, Temasek increased its investment in Singapore, Americas, Asia (ex Singapore and China). We see Temasek further reducing its portfolio allocation in China by 5%, while increasing portfolio allocation in Singapore, Americas and Asia (ex Singapore and China).
There are also changes to the portfolio, in terms of sector allocation.
Here’s a comparison of the sector allocation of Temasek’s portfolio in the year 2020, 2021, and 2022.
| Temasek's Portfolio by Sector | 2020 | 2021 | 2022 | 2023 | Difference between 2022 and 2023 |
|---|---|---|---|---|---|
| Financial Services | 23 | 24 | 23 | 21 | Decrease by 2% |
| Telecommunications, Media and Technology | 21 | 21 | 18 | 17 | Decrease by 1% |
| Transportation and Industrials | 18 | 19 | 22 | 23 | Increase by 1% |
| Consumer and Real Estate | 17 | 14 | 15 | 16 | Increase by 1% |
| Life Sciences and Agri-Food | 8 | 10 | 9 | 9 | No change |
| Multi-Sector Funds | 8 | 8 | 8 | 8 | No change |
| Others (including credit) | 5 | 4 | 5 | 6 | Increase by 1% |
Notice the increase in holdings in the Consumer and Real Estate and Transportation and Industrials sectors. There is also a decrease in holdings in the Financial Services, Telecommunications, Media and Technology, Life Sciences, and Agri-Food space.
Temasek Net Portfolio Value Since Inception
Here’s a quick look at Temasek’s Net Portfolio’s progress since inception.
- Temasek was very focused on the growth of Singapore in its early years.
- In the year 2002, Temasek stepped up its investments in transforming Asia. They have since increased our exposure outside Asia to capture global opportunities for innovation.
- Their initial portfolio in 1974 reflected Singapore’s early stages of industrialisation. Some of these companies, and others added since, have grown into iconic Singapore brands,
such as the Singapore Zoo. Others, like DBS and Singapore Airlines, have transformed into regional and global champions. - Temasek focuses on trends driven by technological advances that cater to demographic shifts and sustainability objectives, transforming business models, or shifting consumption patterns.
- As at 31 March 2022, Temasek’s net portfolio value was S$403 billion.
Do note that Temasek ultimately is neither a sovereign wealth fund nor a fund. It is a state-owned investment company and a provider of catalytic capital.
