Singapore's state investor Temasek, recognized as one of the world's leading funds, announced on Tuesday that it will focus its investments in the United States, following the underperformance of Chinese capital markets over the past year. Temasek reported a 1.8 percent increase in its net portfolio value for the financial year ending March 31, impacted by the sluggish performance of Chinese markets. This marks a recovery from the 5.2 percent decline experienced in the previous year, placing Temasek among the top 10 global investors. The company's net holdings have increased to S$389 billion ($288 billion) from S$382 billion.
Executives from Temasek expressed a cautious approach towards China due to the recent underperformance, while emphasizing that the United States will remain the primary destination for their investments. The Americas region, excluding Singapore, represents 22 percent of Temasek's global exposure, although specific figures for the United States were not disclosed. Deputy CEO Chia Song Hwee highlighted the need to strategically position the portfolio considering the geopolitical landscape and the competitive edge of various economies, indicating a shift towards the US market for the next 12-18 months.
Png Chin Yee, Temasek's CFO, noted that the company remains underweight in the US market, viewing it as a robust market rich in innovation, making it an attractive destination for their investments. Temasek, with a significant global presence beyond its home base, reported a one-year total shareholder return of 1.60 percent, contrasting with the negative 5.07 percent from the previous year. Over longer terms, the 10-year and 20-year returns stand at 6.0 and 7.0 percent, respectively. Temasek holds stakes in major companies including Singapore Airlines and DBS Group, Singapore's largest lender.
