Temasek reported a record net portfolio value of S$308 billion on Tuesday, July 11, for the financial year that ended on 31 March 2018.
The company's one-year Total Shareholder Return (TSR) was 12.19 percent, with compounded annualised returns of 15 percent since inception in 1974.
Dividend income from the portfolio was S$9 billion for the year, according to a press release.
“Our journey as a generational investor is one that we take with a deep sense of purpose and responsibility," said Temasek Chairman Mr Lim Boon Heng.
This is also the first time Temasek's net portfolio value passed the S$300 billion mark. It is now almost three times the dotcom peak of just over S$100 billion at the turn of the millennium.
Executive Director and CEO, Temasek International, Mr Lee Theng Kiat, said, “We have evolved since our inception – from investing mostly in Singapore, then to Asia, and more recently in Europe and the Americas as well. Geographically, the US accounted for the largest share of our new investments during the year. China and Europe were our next two largest investment destinations."
"We invest into companies at different stages of their development, ranging from early stage and unlisted investments, to listed large assets. In aggregate since 2002, our unlisted assets have delivered better returns than our listed investments," he added.
Since 2011, Temasek has increased its focus in the technology, life sciences, agribusiness, non-bank financial services and consumer sectors. Underlying many of these sectors, are technology enablers.
"For instance, our interest in the non-banking finance sub-sectors has been in payments and other tech-enabled services. Other areas of investment activity included innovative businesses in life sciences and agribusiness," Mr Lee explained.
Temasek noted that it is generally positive in its outlook for the year ahead but expect global growth to moderate.
Sulian Tay, Managing Director, Investment, noted, “Looking forward, we see the probability of increased downside risks in the near term. Our balance sheet and portfolio resilience give us the flexibility to ride out short term market volatility, while delivering sustainable returns over the long term.”
Alpin Mehta, Managing Director, Investment, added, “We continue to maintain a disciplined approach. Given the market outlook, we may recalibrate and slow our investment pace over the next 9 to 18 months. On the other hand, we do see a robust pipeline of opportunities for this year.”
In particular, the company aims to actively seek attractive opportunities in promising sectors and markets driven by transformational technologies, demographic shifts and changing consumption patterns.