Temasek Holdings portfolio value up 8.6% to S$215b
2013-07-04 17:03:58
Temasek Holdings on Thursday reported that the value of its investment portfolio rose to a new record in the last fiscal year as shareholder returns also climbed.
The Singapore investment firm said its portfolio, consisting largely of Singapore and Asian equities, increased 8.6 per cent to S$215 billion in the year to March 31, 2013, from S$198 billion a year earlier.
Group net profit was down 0.9 per cent at S$10.6 billion from S$10.7 billion in FY 2011/12.
Temasek said in its annual review that a higher contribution from portfolio returns offset lower contributions from its portfolio companies.
Total shareholder return (TSR), which is Temasek's key measure of performance, was 8.86 per cent for the past year, up from 1.5 per cent in the previous 12 months.
Their three-year TSR was 4.94 per cent. Longer term TSRs for 10, 20 and 30 years were 13 per cent, 14 per cent and 15 per cent respectively. The TSR since inception was 16 per cent.
In the last fiscal year, Temasek invested a total of S$20 billion and divested S$13 billion, for a total net investment of S$7 billion.
Temasek had net investments of S$4 billion in the energy and resources sector and in North America and Europe during the year. Financial services remained its largest portfolio exposure by sector at 31 per cent.
Temasek ended the year with an underlying portfolio exposure of 71 per cent in Asia, including 30 per cent in Singapore and 23 per cent in China.
Temasek's exposure in Australia and New Zealand was 13 per cent, down from 14 per cent a year earlier, while exposure in North America and Europe rose to 12 per cent from 11 per cent. Latin America exposure rose to two per cent from one per cent.
Temasek's key divestments over the year included Asia Pacific Breweries of Singapore and India's Bharti Infratel.
In a statement, Temasek chief executive Ms Ho Ching said: "We are almost entirely invested in equities. This means a lot more year-to-year volatility, as we have seen over the last 10 years. We are prepared to ride through the large mark-to-market volatility on our portfolio value, because a portfolio of mostly equities also means we expect higher returns over the long-term from our portfolio."
Ms Ho added that Temasek is seeing increased opportunities in North America and Europe, and it will be setting up offices in London and New York to support investment activities in those markets.