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Temasek's portfolio performance 2022

What Singaporeans Need to Know About Temasek's Portfolio Performance 2022

profileMing Feng

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

Source: Temasek

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.

Source: Temasek

They have also invested S$315 billion during the decade, including S$61 billion worth of investments and S$22 billion worth of divestments.

Source: Temasek

They have also 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 they have made.

Source: Temasek

Geographically, Temasek increased their investment in Singapore, Americas, Asia (ex Singapore and China). We see Temasek further reducing their 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 Sector202020212022Difference between 2021 and 2022
Financial Services232423Decrease by 1%
Telecommunications, Media and Technology212118Decrease by 3%
Transportation and Industrials181922Increase by 3%
Consumer and Real Estate171415Increase by 1%
Life Sciences and Agri-Food8109Decrease by 1%
Multi-Sector Funds888No change
Others (including credit)545Increase 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 focus in the growth of Singapore in its early years.
  • In the year 2002, Temasek stepped up their 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.
Source: Temasek

 

  • 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.


If you are keen on finding out how Temasek’s portfolio did in the year 2021, we have attached our year 2021 coverage below.

Recap: Temasek’s Portfolio Performance 2021

Despite various challenges of the COVID-19 pandemic, Temasek announced that it closed the financial year ended 31 March 2021 with a Net Portfolio Value (NPV) of S$381 billion. This is an increase of S$75 billion when compared to Temasek’s portfolio in the year 2020.

Here are some takeaways from this announcement in the year 2021.

 

Temasek’s Portfolio Value of S$381 Billion for the Year 2021

Source: Temasek

Temasek reports a net portfolio value (NPV) of S$381 billion for the financial year ended 31 March 2021.

Temasek also managed to achieve a One-Year Total Shareholder Return (TSR) of 24.53%. This is actually quite a good result given that we experienced a decrease in one-year total shareholder return (TSR) last year.

To give more context on this performance, the Total Shareholder Return (TSR) since 1974 was an annualised return of 14% compounded over 47 years; 20-year TSR was 8%, and 10-year TSR was 7%.

During the year, Temasek

Source: Temasek
  • Invested S$49 billion
  • Divested S$39 billion

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 2021?

We take a look at Temasek’s portfolio to understand what did Temasek invest in, in order to drive that kind of return over the year.

Source: Temasek

Notice the decrease in holdings in the Consumer and Real Estate sector, while increased in holdings in the Financial Services, Transportation and Industrials and Life Sciences and Agri-Food space.

Source: Temasek

When it comes to portfolio allocation geographically, we see a reduction in China and Australia & New Zealand of 2% and 1% respectively. Portfolio allocation in Americas increased by 2% while that in Europe, Middle East and Africa increased by 1%.


Temasek Net Portfolio Value Since Inception

If you are keen on finding out the progress of Temasek Net Portfolio Value since inception, here’s a quick illustration.

Source: Temasek

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About Ming Feng
A stint in Bloomberg gifted me with a beer belly, which only grew larger when I moved on to become a Professional Trader. Now I turn caffeine into digestible finance-related content.
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