Temasek Holdings, the state-owned investment company of Singapore, on Tuesday reported a net portfolio value of S$382 billion ($287.5 billion) for the financial year ended March 31, down 5.2% from the previous year.
Its one-year total shareholder return was -5.07%, compared with 5.81% the year before.
Total shareholder returns refer to time-weighted returns of the total portfolio after considering the effects of cash flow between Temasek and the government.
The fund's 10-year TSR was 6%, while its 20-year TSR was 9% for the period ended March 31.
Unlisted assets made up 53% of its portfolio, totaling S$202 billion compared with S$210 billion or 52% of its portfolio the previous year.
Liquid assets, which include listed assets and cash, comprised 47% of the asset portfolio, or S$180 billion, down from $193 billion in 2022.
However, CEO Dilhan Pillay said in a media conference on Tuesday that most of this loss stemmed from the reduction in value in markets, and that realized losses made up a small portion of the drop.
Chief Financial Officer Png Chin Yee added that impairments and realized losses in the fund's unlisted and listed portfolios this recent year were not significantly more than in previous years, even with the $275 million FTX impairment that Temasek made in November.
The internal rate of return over 20 years was 14.4% for its unlisted assets, and 8% for its listed assets, the annual report said.
The FTX investment was part of Temasek's early-stage investment strategy, said CIO Rohit Sipahimalani during the conference. "Early-stage investing is risky by definition, it is binary and that's why we manage that risk by keeping it to less than 6% of our portfolio. Within that, half of that is in funds… and the other half (is managed) by us," he said.
Temasek will continue making early-stage investments by identifying new trends in technology, spotting early winners, and doubling down on them, Mr. Sipahimalani said.
The senior executives also outlined Temasek's 2030 strategy, which will focus on building a resilient and forward-looking portfolio that addresses new challenges such as persistent inflation, lower real returns, energy security concerns, and the introduction of artificial intelligence across industries.
The state investment firm plans to have 60% to 70% of its portfolio comprise assets with a long-term value orientation, such as its key portfolio companies headquartered in Singapore and its asset management businesses, and 30% to 40% of its portfolio oriented towards higher returns through direct investments in its focus sectors, structural trends, and unlisted and early-stage assets.
Its focus sectors include consumer, media and technology, life sciences and agrifood, and non-bank financial services. Allocation to these sectors grew from 5% of its portfolio in 2011 to 32% in 2023.
Temasek will also continue to focus on ESG, Mr. Pillay said. "In our portfolio companies, we will not condone greenwashing. And so we pay attention to not just financial and operational goals and objectives, but ESG goals and objectives too. We have an ESG framework that applies to all our current investments and potential investments as evaluation stage," he said.
The firm has also identified key ESG risks and engages frequently with its portfolio companies to encourage more sustainable practices in its capacity as an investor, he added.
