SINGAPORE: Temasek Holdings reported a 2.2 per cent drop in annual net portfolio value in a pandemic-hit year as it unveiled preliminary performance and said it was ready to invest in opportunities arising from volatile market conditions.
For the year ended Mar 31, Temasek’s net portfolio value fell to S$306 billion, compared with a record gain of S$313 billion a year ago, according to its latest preliminary annual review on Tuesday (Jul 21).
Its one-year total shareholder return turned negative at -2.3 per cent, compared with a 1.49 per cent gain the same period last year.
Temasek said in a statement that prior to the onset of the COVID-19 pandemic in the last quarter of the financial year, its net portfolio value had been “growing steadily and trending well”.
Its net portfolio value had tripled since its inaugural Temasek Review report 16 years ago, with total shareholder return of 7.5 per cent, it said.
“On the whole, we are pleased with our performance despite the sharp correction due to COVID-19,” said Mr Dilhan Pillay, CEO of Temasek International in a press release.
“We have a good mix of listed and unlisted investments, a good balance between our portfolio stalwarts and our new investments into emerging and longer-term trends. These help to add to our resilience,” he said.
He also cautioned that rising geopolitical and trade tensions could create more uncertainties for long-term investors and asset owners, and that the impact of COVID-19 could exacerbate those uncertainties.
Temasek said in its release that it ended the year in a net cash position with a strong balance sheet, allowing it to be ready to invest in opportunities that may arise from volatile market conditions during and post COVID-19 recovery.
During the pandemic, it redirected a significant portion of its community funds to support various COVID-19 initiatives, it said.
It also partnered various private and government groups to pilot medical trials and research and develop solutions that could potentially prevent virus transmission or enhance treatment.
Temasek will provide more information about its portfolio and financial performance in its September report.