Singapore state investor Temasek Holdings saw its net portfolio value climb to 518 billion Singapore dollars ($401 billion) for the year ended March 31, a second straight annual record.
Temasek recorded a 10.5% total shareholder return in the financial year, which it said was driven by the strong performance of its Singapore holdings as well as gains from divestments.
The Straits Times Index rose more than 23% from April 2025 to March 2026, powered by the Equity Market Development Programme announced by the country's monetary authority to unlock greater value in stocks.
Returns would have been better if not for the Iran war that broke out on Feb. 28, which dragged down portfolio value by about 2%. A stronger Singapore dollar also reduced the one-year total shareholder return by about 2 percentage points, Temasek said in a media briefing.
Singaporean companies that the investor holds stakes in include DBS Bank, Southeast Asia's largest bank, Singapore Airlines, and telecommunications firm Singtel.
Temasek made SG$31 billion of divestments in the period, among them a reported S$8.18 billion stake sale in Schneider Electric India in June 2025.
Five-year total shareholder returns were 4.6%, depressed by headwinds in China's markets from 2021 to 2024, Temasek said. The firm portfolio exposure to China has been pared down in recent years, from 24% in 2016 to 2026's figure of 17%.
However, Temasek said it "remains committed" to China, pointing out that in absolute terms, its exposure to the world's second-largest economy increased by SG$10 billion over the past year.
On a 10-year basis, total shareholder returns stood at 7.1% in Singapore dollar terms.
AI, infrastructure and private credit
Temasek said it sees opportunities in three areas: artificial intelligence, private credit, and what it calls "core-plus" infrastructure such as renewable and nuclear energy, energy storage, and decarbonization technologies. This "core-plus" area will be increased to 5% in the next five years, Temasek said.
The firm intends to boost AI-related exposure in its portfolio to 15% by 2031, up from the current 6%.
While current investments include Anthropic and OpenAI in the U.S., Temasek said it intends to deploy capital across areas of the value chain including cloud service providers, foundation models, and AI applications.
"[We] see the rapid advancement of AI as a pivotal phase that will create vast new opportunities."
Temasek also aims to more than double its portfolio value for private credit to 5% by 2031, from the 2% currently.
The firm intends to focus on senior secured structures that will provide downside protection and strengthen diversification such as corporate lending, asset backed financing and real estate credit.
