Temasek
Holdings announce record net portfolio value of
S$275b
SINGAPORE: Temasek Holdings announced on Tuesday (Jul 11) a
record net portfolio value of S$275 billion (US$197 billion) as at
end-March 2017, up from S$242 billion (US$180 billion) a year
ago.
The Singapore-based investment company posted a one-year Total
Shareholder Return of 13.4 per cent for the year, reversing from
the 9 per cent decline the year before.
In a statement, Temasek said it continued to reshape its portfolio
during the year, while adopting a measured and disciplined
investment pace.
As and when opportunities arise, Temasek said it “capitalises on
rich market valuations to exit some of (its) holdings”, while
maintaining the flexibility to “re-enter when valuations are
corrected”.
Over a longer term 10-year period, annualised Total Shareholder
Return was 4 per cent.
During the financial year, Temasek invested S$16 billion and
divested S$18 billion of its portfolio, resulting in a net
divestment position for the first time since the March 2009
year.
Speaking at a media briefing, Temasek president and joint head of
investment proup, portfolio management group, and Singapore, Chia
Song Hwee, said: “Given the market environment, and high valuation,
we see less investment opportunity because we find that, generally
speaking, the market pricing is a bit too high."
"But on the flip side, it allowed us to exit some of our positions
or sell part of our stake given the valuation may be close to our
intrinsic value."
Executive director and CEO of Temasek International, Lee Theng
Kiat, said it continues to focus on “longer term opportunities such
as technology, life sciences, agribusiness, non-bank financial
services, consumer, and energy & resources”.
Investments in these new focus areas made up 24 per cent of its
portfolio last year, up from 8 per cent six years ago, and
delivered better returns than its average return from the overall
portfolio.
The main sectors for its investments during the year were
telecommunications, media & technology, transportation &
industrials, and life sciences & agribusiness.
Temasek said the US accounted for the largest share of investments
during the year. Meanwhile, it continued to make investments in
Asia, with Singapore accounting for the largest share of these
investments.
Key investments in Singapore during the year included an increased
stake in Singtel, and acquisition of all minority shares of
SMRT.
Main divestments included positions in Synchrony Financial, Bharti
Airtel, Lafarge Holcim and Evonik Industries. It also exited some
holdings via acquisitions by third parties, including divestments
of its stakes in Neptune Orient Lines and B/E Aerospace.
Looking ahead, Temasek said it had a “constructive outlook” on the
global economy, but cautioned of political risks and stretched
public market valuations in the medium term.
Temasek’s head of strategy and senior managing director of
portfolio strategy & risk group, Michael Buchanan, said the
investment firm was “cautiously confident that various key
economies will weather their medium term challenges”, despite some
geopolitical risks on the horizon.
Since its inception in 1974, Temasek’s compounded annualised Total
Shareholder Return is 15 per cent in Singapore dollar terms.
Source: CNA/nc