Temasek Holdings, the Singapore state investor, reached a record net portfolio value of SG$518 billion ($401 billion) for the fiscal year ending March 31, according to company reports. The firm achieved a 10.5% total shareholder return, bolstered by strong domestic equity performance and strategic divestments, despite headwinds from geopolitical instability and currency fluctuations.
What drove Temasek’s record-breaking fiscal year?
The record valuation was primarily fueled by a surge in Singapore’s domestic market. The Straits Times Index climbed more than 23% between April 2025 and March 2026, a performance Temasek attributed to the Equity Market Development Programme introduced by the country’s monetary authority to enhance stock value.
Temasek’s core holdings, which include DBS Bank, Singapore Airlines, and Singtel, benefited significantly from this domestic growth. The firm also executed SG$31 billion in divestments during the period, including the sale of an SG$8.18 billion stake in Schneider Electric India in June 2025. These divestments provided the liquidity necessary to reallocate capital into new growth sectors.
How did global volatility impact portfolio returns?
While the portfolio hit record highs, Temasek reported that returns could have been higher if not for specific geopolitical and economic pressures. The outbreak of the Iran war on February 28, acted as a significant drag, reducing the total portfolio value by roughly 2%.
China-related markets also continued to weigh on long-term performance. Five-year total shareholder returns sat at 4.6%, a figure Temasek linked to market headwinds in China between 2021 and 2024. In response, the firm has systematically reduced its exposure to China from 24% in 2016 to 17% in 2026. Despite this percentage reduction, Temasek clarified that its absolute exposure to the Chinese economy actually grew by SG$10 billion over the past year.
Where is Temasek deploying capital next?
Temasek is shifting its investment strategy toward three primary pillars: artificial intelligence, private credit, and “core-plus” infrastructure. The firm views AI as a “pivotal phase” for the global economy and intends to invest across the entire value chain, including cloud providers, foundation models, and AI-driven applications. Current U.S.-based holdings in this space include Anthropic and OpenAI.
The firm also plans to expand its private credit portfolio, aiming to increase its allocation from 2% to 5% by 2031. The focus will remain on senior secured structures, such as asset-backed financing and corporate lending, to ensure downside protection. Additionally, “core-plus” infrastructure—defined as renewable energy, nuclear energy, and decarbonization technology—is slated to grow to 5% of the total portfolio within the next five years.
Frequently Asked Questions
- What is Temasek’s current total portfolio value?
As of March 31, 2026, the portfolio value reached a record SG$518 billion ($401 billion). - Why did Temasek reduce its percentage exposure to China?
The firm cited headwinds in China’s markets from 2021 to 2024 as the primary reason for lowering its exposure from 24% in 2016 to 17% in 2026. - What is “core-plus” infrastructure?
Temasek uses this term to describe investments in renewable and nuclear energy, energy storage, and decarbonization technologies. - How does Temasek plan to use private credit?
The firm aims to grow its private credit portfolio to 5% by 2031, focusing on senior secured structures to provide diversification and downside protection.
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