Business
By Tang See Kit 13 Jul 2021 03:00PM (Updated: 13 Jul 2021 03:00PM )
SINGAPORE: Temasek Holdings on Tuesday (Jul 13) reported a record net portfolio value for the last financial year, while signalling cautious optimism in the global economy for the short to medium term.
For the year ended Mar 31, its net portfolio was valued at S$381 billion, an increase of S$75 billion - or nearly 25 per cent - from the S$306 billion it achieved a year ago, according to its latest annual review.
This marks a turnaround from the previous financial year of 2019/2020, which saw a 2.2 per cent drop in the net portfolio value due to the COVID-19 pandemic.
Its one-year total shareholder return, which takes into account all dividends distributed to shareholders minus any capital injections, turned positive at 24.53 per cent, compared with the -2.28 per cent a year ago .
Over a longer term, its 10-year and 20-year total shareholder returns came in at 7 per cent and 8 per cent respectively, a slight increase from the 5 per cent and 6 per cent respectively in the previous year.
Temasek said it invested S$49 billion and divested S$39 billion in the last financial year – both record numbers and significant increases from the previous year when it invested S$32 billion and divested S$26 billion.
The Americas accounted for the largest share of new investments, followed by Singapore and China. Overall, Asia remained the anchor of Temasek’s portfolio at 64 per cent, with China (27 per cent) and Singapore (24 per cent) remaining the top two markets.
“It was an active year, despite pandemic lockdowns and travel restrictions. We invested to stimulate innovation and growth as we repositioned our portfolio for a changing world,” the Singapore state investment firm said in its annual report.
“We invested during market dislocations based on our value tests. We invested similarly into our portfolio companies and maintained our disciplined sale of investments.”
It noted that several of its unlisted investments went public as markets rebounded over the year.
Temasek also said it has sharpened its focus on new opportunities that are aligned with four structural trends, namely digitisation, sustainable living, future of consumption and longer lifespans.
Overall, financial services (24 per cent), as well as telecommunications, media and technology (21 per cent) remained the two biggest sectors in its portfolio. But it noted that the compositions of these two sectors have changed “significantly” over the last decade, partly driven by digitisation.
For instance, it is interested in payments and financial technology businesses that “stand to benefit from the acceleration of digitisation”. Over the past year, it invested in UK-based wealth management services platform FNZ and local start-up Nium that facilitates global digital payments and card issuance.
It also has a strong focus on the technology space as digitisation has “become a mainstream enabler”. This includes software, Internet, e-commerce, the sharing economy, cloud computing and digital content.
Its investments in technology include US-based online entertainment platform Roblox, as well as software developer of cybersecurity tools Snyk and virtual live events management platform Hopin, from the UK.
Moving forward, Temasek said it expects the global economy to “recover steadily” on the back of accommodative fiscal and monetary policy, but cautioned of an uneven recovery across countries as some struggle with new peaks of COVID-19 infections and slow vaccination rates.
It also noted “potential geopolitical reverberations” as tensions mount between China and the US.
“Overall, we are cautiously optimistic on the global economic recovery in the short to medium term. We continue to shape our portfolio for resilience in anticipation of future threats and opportunities,” Temasek said in a press release.
“The goal is to sustain our performance, generate risk-adjusted returns over the long term, and mitigate climate risks.”
Temasek also said that sustainability remains at its core and it aims to reduce the net carbon emissions of its portfolio to half 2010’s levels, by 2030.
It has a longer-term goal of net zero carbon emissions by 2050.
Source: CNA/lk(mi)
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Temasek’s net portfolio value rebounds to record high
File photo of the Temasek logo. (Photo: Reuters/Edgar Su)By Tang See Kit 13 Jul 2021 03:00PM (Updated: 13 Jul 2021 03:00PM )
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SINGAPORE: Temasek Holdings on Tuesday (Jul 13) reported a record net portfolio value for the last financial year, while signalling cautious optimism in the global economy for the short to medium term.
For the year ended Mar 31, its net portfolio was valued at S$381 billion, an increase of S$75 billion - or nearly 25 per cent - from the S$306 billion it achieved a year ago, according to its latest annual review.
This marks a turnaround from the previous financial year of 2019/2020, which saw a 2.2 per cent drop in the net portfolio value due to the COVID-19 pandemic.
Its one-year total shareholder return, which takes into account all dividends distributed to shareholders minus any capital injections, turned positive at 24.53 per cent, compared with the -2.28 per cent a year ago .
Over a longer term, its 10-year and 20-year total shareholder returns came in at 7 per cent and 8 per cent respectively, a slight increase from the 5 per cent and 6 per cent respectively in the previous year.
Temasek said it invested S$49 billion and divested S$39 billion in the last financial year – both record numbers and significant increases from the previous year when it invested S$32 billion and divested S$26 billion.
The Americas accounted for the largest share of new investments, followed by Singapore and China. Overall, Asia remained the anchor of Temasek’s portfolio at 64 per cent, with China (27 per cent) and Singapore (24 per cent) remaining the top two markets.
“It was an active year, despite pandemic lockdowns and travel restrictions. We invested to stimulate innovation and growth as we repositioned our portfolio for a changing world,” the Singapore state investment firm said in its annual report.
READ: Temasek allots US$500 million for impact investing in LeapFrog tie-up
“We invested during market dislocations based on our value tests. We invested similarly into our portfolio companies and maintained our disciplined sale of investments.”
It noted that several of its unlisted investments went public as markets rebounded over the year.
Temasek also said it has sharpened its focus on new opportunities that are aligned with four structural trends, namely digitisation, sustainable living, future of consumption and longer lifespans.
Overall, financial services (24 per cent), as well as telecommunications, media and technology (21 per cent) remained the two biggest sectors in its portfolio. But it noted that the compositions of these two sectors have changed “significantly” over the last decade, partly driven by digitisation.
For instance, it is interested in payments and financial technology businesses that “stand to benefit from the acceleration of digitisation”. Over the past year, it invested in UK-based wealth management services platform FNZ and local start-up Nium that facilitates global digital payments and card issuance.
It also has a strong focus on the technology space as digitisation has “become a mainstream enabler”. This includes software, Internet, e-commerce, the sharing economy, cloud computing and digital content.
READ: ST Engineering, Temasek to set up joint venture for freighter aircraft leasing
Its investments in technology include US-based online entertainment platform Roblox, as well as software developer of cybersecurity tools Snyk and virtual live events management platform Hopin, from the UK.
Moving forward, Temasek said it expects the global economy to “recover steadily” on the back of accommodative fiscal and monetary policy, but cautioned of an uneven recovery across countries as some struggle with new peaks of COVID-19 infections and slow vaccination rates.
It also noted “potential geopolitical reverberations” as tensions mount between China and the US.
“Overall, we are cautiously optimistic on the global economic recovery in the short to medium term. We continue to shape our portfolio for resilience in anticipation of future threats and opportunities,” Temasek said in a press release.
“The goal is to sustain our performance, generate risk-adjusted returns over the long term, and mitigate climate risks.”
Temasek also said that sustainability remains at its core and it aims to reduce the net carbon emissions of its portfolio to half 2010’s levels, by 2030.
It has a longer-term goal of net zero carbon emissions by 2050.
Source: CNA/lk(mi)
Continue reading...