SINGAPORE – The portfolio of Singapore government investor Temasek Holdings likely rebounded in March, which rose to a record high on a rally in global markets and the listing of some of its holdings.
Analysts estimate that Temasek’s assets rose over 20 percent in March through March, bringing the portfolio’s value to around $ 375 billion – after a 2.2 percent decline to $ 306 billion a year ago – what the first decline after three consecutive years of profit.
The long-term outlook for Temasek, one of the world’s largest government investors, has been clouded by its support from pandemic-hit companies. Temasek has increased funding for Singapore Airlines and the offshore marine services company Sembcorp Marine, among others.
“We have seen broad economic growth and a recovery in financial markets, but there are industries that are facing headwinds,” said Song Seng Wun, economist at CIMB Private Banking.
Temasek is anchored in Asia, with 66 percent exposure to the region as measured by underlying assets, most of which are in China and Singapore. But the investor has stepped up its investments in the US, particularly in the tech sector.
Temasek said it will release details on its annual performance this week, while larger investor GIC will release its annual report later this month.
Analysts do not anticipate any material change in Temasek’s strategy, although senior executive Dilhan Pillay will take over as CEO of the investment firm from Ho Ching, who is retiring after 17 years as head of Temasek.
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Unlike many government investors, Temasek invests the majority in stocks, with unlisted assets accounting for a record 48 percent of the portfolio through March 2020.
Global stocks have risen sharply in the past fiscal year, with the MSCI index for Asian stocks excluding Japan increasing 55 percent and the Singapore Straits Times index increasing 28 percent.
“There remains a flood of liquidity, so competition for funding remains fierce,” said Song.
Among the shares held by Temasek, which saw strong gains in the past fiscal year, DBS Group rose 55 percent, Standard Chartered rose 12 percent and China Construction Bank rose 16 percent.
Several other companies in Temasek’s portfolio, notably Airbnb and the grocery delivery company Doordash, had public listings.
“I don’t expect Temasek’s medium to long-term strategy to change based on any result this year – it is obviously determined by a long-term horizon and aims to anticipate the market by becoming one of the world’s largest and most active Investors in VC’s (venture capital) and technology, “said Diego Lopez, managing director of SWF’s SWF tracker, Global.
