Despite global uncertainties, Singapore investment company Temasek's net portfolio value saw an increase of $45 billion for the financial year ending March 31, 2026 compared to a year ago.

It came in at a record high of $434 billion, mainly due to the strong performance of listed Singapore-based Temasek portfolio companies and direct investments in China, the United States, and India, the company said on Wednesday (July 9).

Net portfolio value is the total market value of listed assets and the book value of unlisted assets in an investment portfolio excluding any liabilities — a clear indicator of the actual worth of the portfolio at a given point in time.

Temasek's 20-year total shareholder return (TSR) — a measure of its long-term portfolio performance — stayed at seven per cent for two years straight.

But the one-year TSR came in at 11.8 per cent — up from 1.6 per cent in the previous financial year.

This was also driven by the performance of Singapore-based portfolio companies and strong returns in the US, China, and India, said Temasek.

Singapore remains biggest market

Singapore remains its biggest market, accounting for 27 per cent of its underlying assets in financial year 2026.

Additionally, 52 per cent of Temasek's portfolio companies are also headquartered here.

Temasek's deputy chief executive Chia Song Hwee said the strong performance of its Singapore-based portfolio companies shows its progress in executing strategies aligned with their "stated targets".

"It affirms our ongoing active engagements with them to strengthen their business foundations, pivot and de-risk where necessary, and drive value creation," he said.

"We have been sharpening our investment discipline through more active portfolio management and will maintain this rigorous approach to enhance our returns over the long term."

Forty-one per cent of Temasek's portfolio is in Singapore-based companies, including household names like DBS Bank, Singapore Airlines, and Singtel.

Another 36 per cent is in global direct investments into established or emerging market leaders such as Shopee parent Sea and investment giant BlackRock, which align with the four structural trends of digitization, sustainable living, the future of consumption, and longer lifespans.

The remaining 23 per cent of the portfolio is held in partnerships, funds, and asset management firms.

After Singapore, the Americas are Temasek's second-biggest market at 24 per cent, followed by China at 18 per cent, Europe, the Middle East, and Africa at 12 per cent, and India at eight per cent.

Temasek chief investment officer Rohit Sipahimalani said the firm's direct investments in markets like China, the US, and India contributed to raise its net portfolio value over the year.

"The growth reflects both the impact of shifting macroeconomic conditions on asset prices and the long-term prospects of our investments aligned with structural tailwinds in these markets," he said.

Geopolitical tensions will affect growth

It said geopolitical tensions are a key risk and will likely dampen global growth.

But it continues to hold a "constructive outlook" on investment opportunities, despite heightened trade and geopolitical uncertainties.

Temasek noted that the US remains a key investment destination while it continues to diversify through its investments primarily in Europe, China, and India.

Singapore's economy may come under pressure this year, the company said, but the Republic "ample fiscal and monetary policy levers that can be pulled" in the event of a more challenging growth backdrop.

bhavya.rawat@asiaone.com