UPDATE: Temasek portfolio rises to S$313 billion, beating forecasts

Impossible Foods’ Impossible Burgers served at Temasek media briefing in July 2019. Temasek is an investor in Impossible Foods.Impossible Foods’ Impossible Burgers served at Temasek media briefing in July 2019. Temasek is an investor in Impossible Foods.

This article was originally published Tuesday, 9 July 2019 at 15:01 SGT; it has since been updated.

Singapore state-owned investment company Temasek reported Tuesday its net portfolio value rose to S$313 billion as of end-March, compared with fiscal 2018’s then-record high of S$308 billion.

While the Singapore dollar-based returns beat analysts’ expectations for a decline, the portfolio value fell on a U.S. dollar basis, coming in at US$231 billion, down from US$235 billion. That was due to the Singapore dollar exchange level at end-March, the company said in a press conference Tuesday.

Total shareholder return (TSR) was 1.49 percent in Singapore dollar terms for the fiscal year, while U.S. dollar TSR was a 1.93 percent contraction, Temasek said.

Market volatility over the fiscal year, due in large part to the U.S. trade war, had been expected to weigh on the portfolio’s performance.

Many of Temasek’s listed holdings took a hit during the fiscal year — the TSR of its 29 percent stake in DBS fell 2.6 percent, its 3 percent stake in China Construction Bank contracted 12.3 percent and its Sembcorp Industries stake lost 16.9 percent, according to Temasek’s statement.

In the life science division, the 4 percent stake in Bayer posted a TSR contraction of 34.7 percent, Temasek said.

In regards to the legacy liability Bayer faces over over allegations Monsanto’s Roundup weed killer causes cancer, John Vaske, Temasek’s head of Americas business said the company took Bayer’s litigation risks into consideration when it was acquired and that it is a long-term investment.

Some listed holdings managed to paste gains: CapitaLand’s TSR was 5.6 percent, PT Bank Danamon, which was divested after the close of the fiscal year, posted TSR of 35.3 percent, Temasek said.

Unlisted holdings, which made up 42 percent of the portfolio as of end-March, also posted gains. Port operator PSA International’s TSR was 8 percent, Singapore Power’s TSR was 7.4 percent and Mapletree Investments TSR came in at 15.8 percent, Temasek said. The TSR of Ascendas-Singbridge, which Temasek divested to CapitaLand after the close of the fiscal year, was 18.9 percent, the statement said.

Temasek received dividends of S$9 billion for fiscal 2019.

The investment company said it invested around S$24 billion during the year and divested S$28 billion.

 

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