Temasek portfolio value logs modest rise; has a cautious approach to China
By Yantoultra Ngui
SINGAPORE, July 9 (Reuters) -Singapore state investor Temasek said on Tuesday its net portfolio value had swung back to growth with a 1.8% gain, adding that profits from investments in the United States and India helped cushion the impact of underperformance in China.
Significantly, Temasek's TEM.UL exposure to the Americas surpassed China for the first time in a decade, accounting for 22% of its portfolio versus China's 19% during the year ended March.
Temasek said it is taking a cautious approach to China and would continue to monitor the country's government policies this year. Aside from Singapore - its biggest market accounting for 27% of its portfolio, the U.S. would continue to be a leading destination for its capital, followed by India and Europe.
The firm added it plans to step up investments in Japan and Southeast Asia. Temasek is also considering building its presence in the Middle East, Deputy CEO Chia Song Hwee told Reuters in an interview.
"The economies (in the Middle East) are going through transformation and opening up and also the policy directions are more investor friendly as well as market-driven," he said.
"So we are clearly seeing the change and we are beginning to spend time looking at opportunities and evaluating."
The rise in the value of Temasek's portfolio to S$389 billion ($288.5 billion) compares with last year's 5.2% drop which had marked the first decline since 2020 amid global economic uncertainties and a higher interest rate environment.
Chia said the firm would continue to "reshape" its portfolio. That includes in China where geopolitical tensions remain a concern and focusing on companies that are centred on the domestic market and rely less on exports, he said.
"Portfolio never stays static. And what we try to do is to reshape our portfolio time and time again to be future-proof, future-ready while making sure that we can earn a long-term sustainable return," he added.
"Our portfolio is still very large in China, even at 19% it is still a large portfolio for us."
Chinese companies that Temasek has invested in include Alibaba Group 9988.HK and Tencent Holdings 0700.HK, owning stakes of less than 1% in both. It also invested in Chinese electric vehicle company BYD 1211.HK during the latest financial year. The size of that holding was not disclosed.
In the United States, its investments include its stake of around 3% in asset manager BlackRock BLK.N and holdings of less than 1% in credit card payment companies Visa V.N and Mastercard MA.N.
Regardless of the outcome of the U.S. election in November, the world's largest economy will continue to be an "interesting market" for Temasek due to innovation and opportunities in the private credit and technology sectors, Chief Financial Officer Png Chin Yee said in a separate interview.
Temasek will continue to seek investment opportunities in artificial intelligence and green transition, its head of financial services Connie Chan also said.
In May, Temasek partnered with Canada's Brookfield BN.TO to invest in Neoen NEOEN.PA, a deal that valued the French renewable power producer at around 6.1 billion euros ($6.6 billion).
Other global investors have also posted gains driven by a better-than-expected U.S. economy and growing expectations of lower interest rates.
This month, Japan's Government Pension Investment Fund posted an investment gain of $133.3 billion for the January-March quarter, while Saudi Arabia's sovereign wealth fund PIF reported it swung to a profit of $36.8 billion in 2023.
($1 = 1.3484 Singapore dollars)
($1 = 0.9228 euros)
Reporting by Yantoultra Ngui; Editing by Sumeet Chatterjee and Edwina Gibbs
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.
