Temasek reports net portfolio value of SGD389 billion in FY24, up SGD7 billion from FY23, based on US and India RoI

Temasek reports net portfolio value of SGD389 billion in FY24, up SGD7 billion from FY23, based on US and India RoI

Sustainable future
Artist’s impression of a sustainable world driven by clean transportation. Image courtesy of: Instagram/temasekseen

Temasek, the global investment arm of the Singapore government, has reported a net portfolio value (NPV) of SGD389 billion for the financial year ended March 31, 2024, up SGD7 billion from a year ago.

When the figures were released today, a Temasek press release said: “Marking our unlisted portfolio to market would generate SGD31 billion in value enhancement and take our Mark to Market (MTM) NPV to SGD420 billion, SGD9 billion higher than last year’s MTM NPV. The increase was mainly due to our investment returns from the US and India, offset by the disappointing performance of the Chinese capital markets.”

One of the Indian companies that benefited from Temasek’s sustainability-focused investments was electric vehicle maker Mahindra Electric Automobile.

Temasek added: “Our unlisted portfolio has grown steadily from 20% in 2004 to 52% as at 31 March 2024. With this increase in exposure, reporting our unlisted assets at mark-to-market value would be more in line with our peers. Therefore, we have aligned our approach this year with market practice and presented the MTM NPV for FY22 and FY23 on a comparable basis for consistency.”

Providing further details, Temasek said: “Our 20-year and 10-year Total Shareholder Return (TSR) remained stable at 7% and 6% respectively. Metrics such as our NPV and the 20-year and 10-year TSRs over the longer term are more indicative of our performance and are aligned with Temasek’s mandate to generate sustainable returns over the long term.

“Longer-term TSRs are based on the start and end year. Our 20-year TSR this year excludes our post-SARS recovery from 2004, which explains the decline in our 20-year TSR from 9% last year to 7% this year. The one-year TSR was 1.60%.”

A resilient and forward-looking portfolio

Amid global economic uncertainties, Temasek, now celebrating its 50th anniversary, maintained “a cautious but steady pace of investment”, guided by the core principle of generating sustainable returns.

We invested SGD26 billion in opportunities in sectors such as technology, financial services, sustainability, consumer and healthcare, aligned with the four structural trends of digitalisation, sustainable living, future of consumption and longevity. Excluding Singapore, the US remained the top destination for our capital, followed by India and Europe. We also increased our investment activities in Japan.

Temasek

The Singapore government-owned entity “also divested SGD33 billion for the year”. It said: “Of this, approximately SGD10 billion was due to capital redemptions by Singapore Airlines and Pavilion Energy for their mandatory convertible bonds and preference shares respectively. Overall, we had a net divestment of SGD7 billion, compared to a net investment of SGD4 billion a year ago.”

Temasek said it is “committed to embedding sustainability” at the core of all its business decisions and operations.

“This year, we launched our first Sustainability Report,” the press release said. “It brings together our disclosures and tracks our progress, taking into account the disclosure requirements set forth by the International Sustainability Standards Board. By sharing our sustainability goals, practices and performance, we aim to build trust and engage in meaningful dialogue on the topic with our stakeholders.”

During the 2023-24 financial year, Temasek has “invested SGD3 billion in investments that align with the sustainable living trend. This includes investments focused on sustainability and investments in the climate transition, with focus areas such as food, water, waste, energy, materials, clean transportation and the built environment.”

In clean transportation, investments from Temasek, in addition to Mahindra in India, went to BYD in China; sustainable battery solutions provider Ascend Elements in the U.S.; and electrolyzer maker Electric Hydrogen in the U.S. “In May 2024, we partnered with Brookfield to invest in Neoen, a France-based global renewable energy company,” the press release said.

It added: “We are advancing sustainability through partnerships with like-minded partners such as Breakthrough Energy, BlackRock and Brookfield, to invest in the energy transition and scale next-generation climate solutions.”