Temasek reports $45 billion rise in net portfolio value to $434 billion

SINGAPORE – Singapore investment company Temasek’s net portfolio value came in at $434 billion for the financial year ended March 31, 2025, up $45 billion from a year ago.

The increase was mainly due to the strong performance of listed Singapore-based Temasek portfolio companies and direct investments in China, the United States and India, the company said on July 9, adding that the $434 billion net portfolio value is a record high.

Net portfolio value represents the total market value of listed assets and the book value of unlisted assets in an investment portfolio minus any liabilities. It provides a clear picture of the actual worth of the portfolio at a given point in time.

In a measure of Temasek’s long-term portfolio performance, the 20-year total shareholder return (TSR) stayed at 7 per cent for a second year straight.

The one-year TSR, which is more volatile, came in at 11.8 per cent, up from the 1.6 per cent in financial year (FY) 2024, driven by robust performance from Temasek’s Singapore-based portfolio companies, as well as strong returns in the US, China and India.

The 10-year TSR came in at 5 per cent, down slightly from 6 per cent the year earlier, as the strong returns from March 2015 – a year of favourable market performance – dropped out of the measurement period.

When it comes to marking its unlisted assets to market, Temasek’s net portfolio value hit $469 billion, an increase in value of $35 billion from a year ago. 

Mark-to-market value is an accounting practice that involves recording the value of an asset according to its current market price, rather than its book value or original cost.

The investment company has been disclosing the mark-to-market value of its unlisted assets since 2022. Temasek’s listed investments comprise 51 per cent of its investment portfolio. 

Temasek deputy chief executive Chia Song Hwee said the firm’s Singapore-based portfolio companies’ strong performance this year demonstrates their progress in executing strategies aligned with their “stated targets”.

“It affirms our ongoing active engagements with them to strengthen their business foundations, pivot and de-risk where necessary, and drive value creation,” he said.

“We have been sharpening our investment discipline through more active portfolio management and will maintain this rigorous approach to enhance our returns over the long term.”

Of Temasek’s portfolio, 41 per cent is in Singapore-based Temasek portfolio companies, which include household names such as DBS Bank, Singapore Airlines and Singtel.

Another 36 per cent is in global direct investments, which are established or emerging market leaders aligned with the four structural trends of digitisation, sustainable living, the future of consumption and longer lifespans.

These firms include Shopee parent Sea and investment giant BlackRock.

The remaining 23 per cent of the portfolio is held in partnerships, funds and asset management firms, including entities such as venture capital firm Vertex, asset management group Seviora and private equity firm 65 Equity Partners.

Singapore remains the biggest market for the company, accounting for 27 per cent of its underlying assets in FY2025. A total of 52 per cent of Temasek’s portfolio companies are also headquartered in Singapore.

The Americas are Temasek’s second-biggest market at 24 per cent, while the company’s underlying exposure to China dipped slightly to 18 per cent from 19 per cent a year earlier.

Exposure to Europe, the Middle East and Africa stood at 12 per cent, and India at 8 per cent.

Temasek chief investment officer Rohit Sipahimalani said the firm’s direct investments in markets like China, the US and India contributed to the uplift in its net portfolio value over the year.

“The growth reflects both the impact of shifting macroeconomic conditions on asset prices and the long-term prospects of our investments aligned with structural tailwinds in these markets,” he said.

“We will continue to actively invest in our key markets while also exploring new markets of scale that can add to our portfolio resilience.”

In FY2025, the company invested $52 billion in areas aligned with the four structural trends of digitisation, sustainable living, the future of consumption and longer lifespans.

It divested $42 billion, which included a full divestment in liquefied natural gas company Pavilion Energy as well as partial divestments in fashion firm Moncler, food technology company Eternal (formerly known as Zomato) and Fullerton Financial Holdings.

Temasek said these divestments allowed the firm to recycle capital and continue investing in companies that are aligned to the trends, such as food technology start-up Rebel Foods and snacks company Haldiram’s.

The result is a net investment of $10 billion, compared with a net divestment of $7 billion in FY2024.

Temasek has also made strides in its sustainable investments. Its portfolio value of investments aligned with the sustainable living trend reached $46 billion, up $2 billion from FY2024.

Financial services as well as transportation and industrials remain the two largest sectors that Temasek is invested in.

The investments are in a mix of listed and unlisted assets, with listed assets accounting for 51 per cent of the portfolio and unlisted assets accounting for the remaining 49 per cent.

Looking ahead, Temasek said geopolitical tensions remain a key risk, which will likely dampen global growth.

But it continues to hold a “constructive outlook” on investment opportunities, despite heightened trade and geopolitical uncertainties.

Temasek noted that the US will remain a key investment destination while the company continues to maintain a diversified global exposure through its investments primarily in Europe, China and India.

It also highlighted that Singapore’s economy will likely come under pressure this year, but the Republic has “ample fiscal and monetary policy levers that can be pulled” in the event of a more challenging growth backdrop.

To build a resilient portfolio in the Republic, Temasek will continue to actively engage its Singapore portfolio companies to enhance value and future-proof their businesses.

It will also work with partners and innovators, creating “synergistic networks” with them to further grow its capital and gain access to innovation.

Temasek chairman Lim Boon Heng said that like Singapore, Temasek and its Singapore portfolio companies have benefited from globalisation, expanding their footprint regionally and beyond.

“Despite increasing global uncertainties, we must remain steadfast in our commitment to building a purpose-driven institution and constructing a portfolio that delivers sustainable returns over the long term,” he said.