Singapore's Temasek Says Net Portfolio Value Hits Record S$400 Billion Amid Investment Slowdown

Singapore's Temasek Holdings has reported a record rise in its net portfolio value, which hit S$400 billion for the first time in its history.

The Singapore wealth fund said that in the financial year ended in March, the net portfolio was valued at S$403 billion, which was an increase of S$22 billion from the year-ago period. However, the wealth fund said that the pace of growth of investment in the city state is is predicted to slow down.

Uncertainty in Global Markets

"Amid the uncertainty in global markets, we steadily invested and divested to capture opportunities aligned with long-term structural trends ... We aim to construct a resilient and forward-looking portfolio, with sustainability at the core of all that we do," Temasek Holdings said in a statement.

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A woman passes a logo of state investor Temasek Holdings at their office in Singapore July 8, 2014. REUTERS/

China Investment

According to Temasek, while the investment totalled S$61 billion in the last financial year, and divestments stood at $37 billion. Asia remained the anchor of Temasek's portfolio at 63 percent while financial services and telecommunications, media and technology sectors received the biggest share of investment, followed by transportation and industrials.

"For China, our exposure has decreased and this is due to the drop in the market value of our China portfolio. But China has consistently performed well for us over the decade, and we remain confident in its fundamentals and longer-term outlook," managing director of Temasek International's strategy office Lim Ming Pey said, according to the Channel News Asia.

Singapore city
Singapore city Reuters

Temasek said it will focus more on consumer, media and technology sectors as well as life sciences and agri-food. Non-bank financial services companies will also be focused on. Temasek noted that investments in these sectors made up 33 percent of its overall portfolio in the last year.

"We have reshaped our portfolio over the last decade to be more resilient, especially as we anticipated intersections across sectors, and an increasing pace of disruption," Temasek's head of west coast and deputy head of technology and consumer Martin Fichtner said, according to CNA.