Ranked among the many world’s largest buyers, Temasek’s internet portfolio worth fell 2.2% to S$306 billion ($224 billion) within the 12 months to March 2020, the primary drop in 4 years, it mentioned in July.
“Elevated geopolitical tensions and expertise bifurcation may end in a extra unsure atmosphere for long run buyers and asset homeowners,” Yeoh Keat Chuan, a senior managing director at Temasek Worldwide, instructed reporters in a digital information convention on Tuesday.
Senior executives mentioned the coronavirus pandemic had not considerably altered Temasek’s funding technique in the long run.
Nonetheless, the disaster had accelerated structural tendencies that information Temasek’s funding choices, resembling these pushed by demographic shifts and altering consumption patterns, in addition to enabled by technological advances.
Temasek stays anchored in Asia, with publicity to the area of 66% as measured by underlying belongings, most of that are in China and Singapore. However america once more accounted for the most important share of its new investments within the newest 12 months.
Unlisted belongings made up a report 48% of Temasek’s portfolio within the 12 months to March, up from 42% a 12 months earlier.
“Our means to take a position each within the non-public and public house provides us a aggressive benefit relative to these whose mandates are literally extra constrained,” mentioned Png Chin Yee, head of economic companies.
Temasek’s portfolio publicity to China elevated to a report 29% within the newest 12 months from 26% a 12 months earlier, whereas publicity to Singapore fell to 24% from 26%.
Temasek was amongst world buyers who participated in a 2018 funding of Chinese language monetary expertise agency Ant Group.
Ant now plans to record concurrently in Hong Kong and Shanghai, in an IPO that sources have mentioned may very well be the world’s largest.
Png mentioned Temasek appreciated what Ant was doing in China’s monetary companies sector. “There may be various potential for Ant going ahead nonetheless,” she mentioned, declining to touch upon Temasek’s place relating to Ant’s IPO.
By Anshuman Daga and Aradhana Aravindan