Singapore state investor Temasek Holdings reported a record net portfolio value of S$518 billion for the financial year ending March 31, 2026. This represents a S$49 billion increase from the previous year, driven largely by the strong performance of listed Singapore-based portfolio companies and gains from key divestments. Despite ongoing global volatility, the firm achieved a one-year total shareholder return of 10.5 per cent in Singapore dollar terms, or 14.8 per cent when measured in US dollars.
The firm’s performance faced headwinds toward the end of the financial year, particularly due to the conflict in the Middle East and a strengthening Singapore dollar, which Temasek estimates reduced its net portfolio value by approximately 2 per cent. Nevertheless, the firm maintained an active investment pace, deploying S$51 billion in new capital while divesting S$31 billion, resulting in a net investment of S$20 billion.
Looking ahead, Temasek is sharpening its focus on three key growth areas: artificial intelligence, core-plus infrastructure, and private credit. The firm currently holds a 6 per cent exposure to AI-related assets and aims to increase this to as much as 15 per cent by 2031. Recent additions to its global portfolio include AI heavyweights Anthropic and OpenAI, as well as luxury fashion group Ermenegildo Zegna.
To support these goals, Temasek has reorganized its investment activities into three wholly-owned entities: Temasek Singapore, Temasek Global Investments, and Temasek Capital. This structural refresh is intended to enhance clarity and accountability as the firm navigates what leadership describes as a polycrisis world characterized by volatility, uncertainty, and complexity.
As a long-term investor, Temasek emphasizes that its performance should be evaluated over decades rather than single years. The firm reported a 20-year total shareholder return of 6.8 per cent and a 10-year return of 7.1 per cent. These figures, according to the firm, demonstrate the portfolio's resilience and its ability to deliver sustainable returns through various market cycles.