Investment Approach and Portfolio Performance of Temasek
Key Points:
Portfolio Growth: The total value of Temasek’s portfolio increased by around 2% to SG$389 billion ($288bn) for the financial year ending March
Confidence in China: Temasek retains its cautious approach towards investing directly in China due to persistent structural economic issues.
Head to the U.S. first: The firm is focusing on investing in the United States, particularly among old-guard industries starting to adopt artificial intelligence for basic purposes.
Bright Outlook in Other Markets: Temasek is bullish about investment opportunities in the U.S., India, and Japan.
Investment Focus:
U.S. Market:
The S&P equal weight index is arguably overvalued with an overall valuation of 19 times earnings but trades at a more normal level relative to its long-term average when using price-to-earnings (16) and other metrics.
The investors’ portfolio exposure to the Americas is 22% (through Temasek).
Focus areas: Traditional sectors: Early AI adopters in traditional industries.
Chinese Market:
Indeed, given the structural bottlenecks in China and a lack of internal household demand for consumption.Internal_demand_pelletrecht_annotations_Null.gif
It is looking to sectors such as biotech, robotics and electric vehicles for domestic use.
Geopolitical risks are a risk and hence companies that have low influence of export revenue based market have been the focus;
Temasek’s portfolio, proportionate of which were Chinese assets slipped from 22% to 19%.
Japanese Market:
Market inmates and introductory all-time highs (hype) follow more foreign inflows
Results were boosted mainly due to corporate governance reforms and an uptick in private equity Activity.
Its exposure to Japan, which was close to nothing in the past several years has now grown to 1% of its portfolio.
Indian and European Markets:
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