What Singaporeans Need to Know About Temasek’s Portfolio Performance 2020
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What Singaporeans Need to Know About Temasek’s Portfolio Performance 2020

Ming Feng
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Update: Temasek’s Portfolio Performance

Temasek has just announced that it closed the financial year ended 31 March 2020 with a Net Portfolio Value (NPV) of S$306 billion. This value is the same as its preliminary portfolio performance.

Here are some take away from this announcement.

Portfolio Value of S$306 Billion

Temasek's portfolio performance

Temasek reports a net portfolio value (NPV) of S$306 billion as at 31 March 2020.

We see a slight decrease in One-Year Total Shareholder Return (TSR) of 2.28%, which seems reasonable for such a climate. Most people would have expected a worse result.

Do note that TSR takes into account all dividends distributed to the shareholder, less any capital injections. The Total Shareholder Return since 1974 was an annualised return of 14% compounded over 46 years; 20-year TSR was 6%, and 10-year TSR was 5%.

During the year, Temasek

  • Invested S$32 billion
  • Divested S$26 billion

Over the last 16 years

If we zoom out to have a longer-term view on this, Temasek’s net portfolio value (NPV) tripled over the last 16 years. From S$90 billion as at 31 March 2004.

Shareholders have also enjoyed a compounded return of 7.5% from 31 March 2004 to 31 March 2020.


Temasek Portfolio vs Indexes Around the World

To give a better comparison of the performance of Temasek Portfolio, we take a look at the performance over the last financial year.

Portfolio/ IndicesPerformance over the last financial year
Temasek Portfolio-2.3%
MSCI World Index-5.8%
MSCI Asia ex-Japan Index-9.0%
MSCI Singapore Index-18.3%

Temasek’s Net Portfolio Value (NPV) Over the Years

Here’s the Net Portfolio Value (NPV) of Temasek over the past 10 years:

As at MarchNet Portfolio Value
2020S$306 Billion
2019S$313 Billion
2018S$308 Billion
2017S$275 Billion
2016S$242 Billion
2015S$266 Billion
2014S$223 Billion
2013S$215 Billion
2012S$198 Billion
2011S$193 Billion

Temasek’s Total Share Return as of 31 March 2020

Here’s the Total Shareholder Return:

DurationTSR in S$ terms
Since inception
(1974)
14%
20-year6%
16-year
(since 2004)
7%
15-year6%
10-year5%
One-year-2.28%

How resilience is temasek's portfolio?

Overall, Temasek’s portfolio has been quite resilient to crises as compared to some of the indexes in terms of past performance. While past performances do not necessarily depict future performances, we thought the track record seems rather healthy.

There are definitely things we can learn from the way Temasek invests.

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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