Based on Singapore-based Temasek, the portfolio fell for the primary time in 4 years as a consequence of Covid-19

A sign from Temasek Holdings in their Singapore office.

Munshi Ahmed | Bloomberg | Getty Images

SINGAPORE – Singapore state-owned investment company Temasek announced Tuesday that the net worth of its portfolio fell for the first time since 2016 when the coronavirus pandemic hit global markets.

The Temasek portfolio decreased in size to $ 306 billion ($ 223.73 billion) for the fiscal year ended March 31, down roughly 2.2% from the previous year ($ 313 billion), the company said Company in its annual report.

The one-year shareholder return has fallen by 2.28%, said the company. However, the return was 5% over 10 years and 6% over 20 years. These returns take into account any dividends paid to the Temasek shareholder, less any capital injections.

Temasek – an active public and private equity investor – is owned by the government of Singapore, a tiny but wealthy Southeast Asian nation.

Temasek attributed its investment performance last year to the spread of coronavirus disease (Covid-19), which caused global markets to collapse in March. The company noted that markets have since rebounded but cautioned about uncertainties such as tension between the US and China.

Dilhan Pillay Sandrasegara, executive director and chief executive of Temasek International, said both the US and China have been "significant targets" for the company's investments over the past five to six years.

He stated that what happens to the US-China relationship may have an impact on other economies and companies operating around the world, and Temasek is closely monitoring developments regarding the two economic giants.

Go international

The company – a close-knit global investor – invested primarily in companies in Singapore in its early days, but has grown into a significant global investor in recent years. Around three quarters of Temasek's portfolio potential is in its home country and in countries such as China, North America and Europe. According to the report, two-thirds of the underlying exposure is in Asia.

China's wealth accounted for 29% of Temasek's investment portfolio last fiscal year – the largest geographic portion. The company's annual report was followed by Singapore with 24% and North America with 17%.

In terms of sectors, the investor is most exposed to financial services, which accounted for around 23% of the underlying assets of their portfolio.

Temasek said it will continue to invest in financial services, technology and life sciences. In total, the company invested 32 billion Singapore dollars ($ 23.42 billion) and sold 26 billion Singapore dollars in the past fiscal year.