This year, the 20-year shareholder return is 7 per cent, unchanged from 2024. The 10-year shareholder return dipped to 5 per cent, down from 6 per cent last year.
“This is because our March 2015 performance, a strong one due to the favourable market conditions that year, has been dropped from the measurement period,” said Ms Lim Ming Pey, joint head of global strategy at Temasek.
INVESTMENTS AND DIVESTMENTS
As for its net investments of S$10 billion for the financial year, chief financial officer Png Chin Yee said both investments and divestments cut across a few sectors.
“We divest when the thesis has played out … when we see that actually we have realised a good profit and want to recycle that into a similar space,” she said, noting that Temasek partially divested its stake in Moncler.
For investments, Temasek leaned into artificial intelligence and infrastructure, including digital infrastructure, said Ms Png. The firm also invested in financial services and technology.
Looking ahead, Temasek wants to increase its exposure into core-plus infrastructure and AI.
Core-plus refers to investments that have slightly higher returns than core infrastructure projects such as rail networks or gas pipes. Examples of core-plus would include energy transition assets and digital infrastructure.
“This is an asset class that can provide resilient, risk-adjusted returns and stable cash yields,” said Ms Lim.
She said there are “ample and attractive opportunities” in the infrastructure sector, driven by the demand for data centres, the energy transition and the replacement of ageing infrastructure.
For AI, she said the Temasek is looking for opportunities across the value chain, from winners that are growing and scaling to factories that enable the broader ecosystem, and emerging innovators with the potential to disrupt the market.
Ms Lim also spoke about Aranda Principal Strategies, a private credit platform that was spun out from Temasek’s credit portfolio team to better capture opportunities.
Aranda manages a S$10 billion portfolio comprising both direct investments and funds, and the amount is expected to grow, she said.
OPPORTUNITIES IN THE US, GLOBAL OUTLOOK
The share of Temasek’s portfolio invested in the US increased from 22 per cent last year to 24 per cent this year.
“The US remains a key investment destination for us, while we continue to maintain a diversified global exposure through our investments primarily in Europe, China and India,” the firm said in a press release.
“We’ve been finding a lot of attractive opportunities in the US,” said chief investment officer Rohit Sipahimalani.
