Temasek’s blue-chip portfolio companies drive value to record S$518 billion

[SINGAPORE] A strong performance from Temasek’s Singapore-based portfolio companies, together with realised gains from key divestments, helped drive the state investor’s net portfolio value (NPV) to a record S$518 billion for the financial year ended Mar 31, 2026.

The figures were released on Wednesday (Jul 8) at the launch of the annual Temasek Review report, which covers the investment company’s performance overview, portfolio composition and financial summary for FY2025.

Temasek’s returns, and those of sovereign wealth fund GIC and the Monetary Authority of Singapore, account for the second-biggest source of funding for Singapore’s Budget in the form of net investment returns contribution (NIRC).

On a like-for-like basis using the previous book-value methodology, NPV would have come in at S$486 billion, up from S$434 billion a year earlier.

Temasek’s one-year total shareholder return (TSR) came in at 10.5 per cent, with NPV increasing by S$49 billion from the previous financial year.

The gain was driven largely by the strong performance of listed Singapore-based Temasek portfolio companies (TPCs) and realised gains from key divestments. 

This includes ST Telemedia’s sale of its remaining 82 per cent stake in ST Telemedia Global Data Centres to KKR and Singtel for S$6.6 billion in February 2026 – one of the largest digital infrastructure transactions in South-east Asia.

Within Temasek’s Global Direct Investments (GDIs) portfolio, listed investments now make up 63 per cent versus 37 per cent unlisted. Unlisted positions have outperformed over the past decade, though Temasek has been raising its allocation in liquid listed strategies for more flexibility.

That uplift, however, was tempered by events in the Middle East, which triggered a 2 per cent NPV drawdown in the final month of the financial year, reversing much of the earlier gains in the GDI portfolio.

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A stronger Singapore dollar against major foreign currency exposures also weighed on returns, reducing one-year TSR by about two percentage points. 

Excluding this effect, one-year TSR would have been 12.9 per cent on a constant currency basis, or 14.8 per cent in US dollar terms.

Temasek said its longer-term TSRs remain a better reflection of its investment performance, given its mandate of delivering sustainable returns over the long term.

Its 20-year TSR stood at 6.8 per cent and its 10-year TSR at 7.1 per cent, which the company said demonstrates the portfolio’s ability to perform through market cycles. 

Five-year TSR was lower, at 4.6 per cent, weighed down by headwinds in China’s capital markets between 2021 and 2024. 

Temasek said deliberate steps taken from January 2024 to sharpen its portfolio focus and strengthen execution had contributed to stronger returns over the past two consecutive years. 

It added that China’s market valuations have since rebounded and that its underlying exposure to the country rose by S$10 billion over the year.  

Said chief executive officer Dilhan Pillay: “In a world of deepening complexity, we aim to bring more to the table than just our capital.”

“Our franchise value comes from the rest of our portfolio, the main capabilities were built across our sectors and markets, and the operating knowledge that comes from working alongside companies invested.”

Three engines

The engines of long-term returns for Temasek’s portfolio remain anchored by three segments. 

TPCs, the stalwarts of its portfolio, made up 43 per cent of portfolio value and collectively generated some S$200 billion in revenue while employing over 400,000 people globally.

GDIs stood at 38 per cent, comprising stakes in emerging and established market leaders, including new investments in Anthropic and OpenAI in the US, and Ermenegildo Zegna Group in Europe over the year.

Partnerships, funds and asset management companies made up the remaining 19 per cent. Temasek said this roughly 40-40-20 split has largely held since 2018, with each segment delivering 10-year internal rates of return of between 7.6 and 8.1 per cent.

Temasek said it ended the year in a net cash position, giving it flexibility to capitalise on market dislocations and emerging opportunities.

Since Apr 1, 2026, it has also operated under a refreshed structure – Temasek Singapore, Temasek Global Investments and Temasek Partnership Solutions, complemented by Temasek International.

Elsewhere in the report, Temasek set out plans to scale up its exposure to artificial intelligence and private credit, and detailed its sustainability performance for the year.