Singapore state investor Temasek posts worst returns since 2016

Singapore's authorities concern institution Temasek recorded successful 2023 its worst returns successful 7 years, weighed by a challenging macroeconomic and geopolitical environment.

Temasek posted a 5.07% diminution successful its one-year full shareholder instrumentality successful Singapore dollars successful the fiscal twelvemonth that ended March 31, according to a connection released Tuesday. It was besides Temasek's archetypal yearly shareholder antagonistic instrumentality since 2020.

Net portfolio worth came successful astatine $382 cardinal Singapore dollars ($284.77 billion), compared to S$403 cardinal a twelvemonth ago. This was conscionable its 5th one-year full shareholder antagonistic instrumentality since 2003.

"2022 has been the challenging twelvemonth for markets implicit the past decade," said Lim Boon Heng, Chairman of Temasek Holdings successful the statement. "Against a backdrop of restrictive macro policy, little maturation and a highly polarized geopolitical environment, the satellite is changing rapidly."

Still, Temasek's diminution successful yearly shareholder instrumentality successful 2022/23 compares comparatively favorably with planetary banal marketplace returns.

The S&P 500 and MSCI Asia ex-Japan benchmarks each plunged astir 20% successful 2022, roiled by sticky ostentation contempt aggregate complaint hikes by cardinal banks. Intensifying geopolitical tensions specified arsenic U.S.-China tensions and the Russia-Ukraine warfare did not help.

The Singapore authorities capitalist is invested successful some nationalist and backstage markets. Unlisted assets comprised 53% of its portfolio arsenic astatine March 31— generating higher returns successful listed assets. Marking its unlisted portfolio to marketplace would supply S$18 cardinal of worth uplift, it said.

Its three-year full shareholder instrumentality stood astatine 8%, portion its 10-year instrumentality was astatine 6% and 20-year instrumentality astatine 9%.

The confluence of aggregate planetary events successful the past twelvemonth has raised the outgo of superior and weighed connected superior flows, the Singapore authorities capitalist said.

"It besides had an interaction connected the gait of vigor transition, successful the look of greater request for vigor information and resilience," it added.

Temasek said its planetary nonstop investments, peculiarly successful the technology, wellness attraction and payments spaces, saw "a reversal of gains" successful the 12 months ending March 31, arsenic valuations de-rated successful the higher involvement complaint environment.

Temasek said it consequently slowed down its concern gait successful the past year, and adopted a cautious attack arsenic liquidity tightened. It invested $23 billion, portion divesting $20 billion, resulting successful a nett concern of $3 billion.

Still, Temasek said it made caller investments successful payments platform, Stripe, arsenic good arsenic IT information supplier Kaseya. That concern successful crook enabled its acquisition of Datto, a supplier of information and cloud-based bundle solutions.

Temasek said it accrued its involvement successful Mastronardi, a Canada-based institution that cultivates and distributes caller nutrient grown successful greenhouses.

The Singapore's authorities capitalist said it trimmed its portfolio vulnerability to fiscal services to 21% successful 2022/23 from 23% the twelvemonth before, It besides accrued its vulnerability to proscription and industrials to 23% from 22%. These 2 sectors are the largest successful its concern portfolio.

Early signifier investments are capped astatine 6% of its portfolio, Temasek said.

In November, Temasek wrote down its $275 cardinal investment successful bankrupt cryptocurrency speech FTX. It subsequently cut compensation in May for the squad that recommended its investment in the now-bankrupt FTX cryptocurrency exchange, arsenic good arsenic for its elder absorption team.