The bounceback in global stock markets allowed Singapore’s sovereign wealth fund Temasek’s portfolio value rocketing 43% to an all time high of $134.7 billion for the year ended March’10, surpassing the previous best of $134 billion two years ago.
However, group net profit fell by a quarter to $3.3 billion and group revenues declined 3% to $55.7 billion.
Temasek that counts amongst its India investments names such as Bharti Airtel( in addition to its tower arm Bharti Infratel) and ICICI Bank, also recently upped exposure with investments in the country by investing $175 million in the National Stock Exchange in May 2010 and $203 million in GMR Energy Limited in June 2010. Temasek also invested in Sobha Developers in February 2010 and in Essar Energy in April.
In total Temasek invested $7.2 billion last year globally including $2.17 billion recapitalisation. It divested assets worth $4.34 billion making net investments of $2.86 billion.
The geographic mix of Temasek’s portfolio that is concentrated in Asia including Singapore was further consolidated in the region. The total portfolio value in Asia (including Singapore) rose from 74% in FY09 to 78% FY10. Meanwhile OECD and rest of the world (that incudes Central &
Latin America, Africa, Middle-East, Russia and East Europe) saw their proportion shrink last year.
“Choppy waters lie ahead, but Asia will maintain its secular long-term growth. Our focus on Asia continues,” said S Dhanabalan in his annual letter as chairman of Temasek.
In terms of sectoral exposure the firm put more faith in financial services; life sciences, consumer & real estate besides energy & resources. The proportion of assets in sectors such as telecom, media & technology besides transport & industrial decline for the year ended March’10.
One other rejig in portfolio was in terms of exposure to unlisted assets that came down from 28% to 23% while that of large listed blocks increased concurrently.
NOTE: All values based on current forex rates