Temasek reports $7 billion rise in net portfolio value to $389 billion

Increase due to higher returns from US and India, offsetting China’s underperformance

- Chor Khieng Yuit

Singapore’s investment company Temasek’s net portfolio value came in at $389 billion for the financial year ended March 31, 2024, up $7 billion from a year ago.

The increase was mainly due to higher returns from the United States and India, but the portfolio was also weighed down by the underperformance in China’s capital markets, the company said on July 9.

Net portfolio value represents the total market value of all the assets in an investment portfolio minus any liabilities. It provides a clear picture of the actual worth of the portfolio at a given point in time.

After marking its unlisted assets to market, the net portfolio value is $420 billion, an increase of $9 billion from a year ago.

Mark-to-market value is an accounting practice that involves recording the value of an asset according to its current market price, rather than its book value or original cost.

Temasek’s unlisted investments comprise the majority of its investment portfolio.

The investment company has been disclosing the mark-to-market value of its unlisted assets since 2022. It further refined the methodology this year to be in line with market practices. For example, if an investee company had a recent funding round, the funds raised will be used as a guide to value the company.

In a measure of Temasek’s long-term portfolio performance, the 20-year total shareholder return (TSR) came in at 7 per cent, while the 10-year TSR stayed at 6 per cent for the second straight year.

The 20-year TSR fell from 9 per cent a year ago to 7 per cent in the financial year ended March 2024 because it excludes the post-Sars recovery in 2004 when returns jumped 20 per cent.

The one-year TSR, which is more volatile, reversed from a negative 5.07 per cent in the last financial year to a positive 1.6 per cent.