Singapore’s state investment firm Temasek has reported a record net portfolio value of S$434 billion ( US$338 billion ) for the financial year ended March 31, marking a S$45 billion increase from the previous year.

The growth was driven by strong returns from Singapore-listed portfolio companies and direct investments in the US, China and India. On a mark-to-market basis, the value would have reached S$469 billion, with unlisted assets contributing an additional uplift of S$35 billion.

Temasek’s long-term returns remained resilient, with a 20-year total shareholder return ( TSR ) of 7% and a 10-year TSR of 5%. The firm says it ended the year in a net cash position, strengthening its ability to act decisively in times of market stress or dislocation.

The portfolio is structured around three main segments: Singapore-based Temasek portfolio companies; global direct investments; and partnerships, funds and asset management companies.

These represent 41%, 36% and 23% of portfolio value respectively. The structure, the sovereign fund notes, reflects its evolution over two decades and provides a diversified, future-ready foundation in a volatile global environment.

Temasek invested S$52 billion and divested S$42 billion during the year, part of a broader rebalancing strategy. Over the past 10 years, the firm has invested S$350 billion.

Its latest capital deployment, it points out, favours resilient companies with strong domestic demand, predictable cash flows and robust pricing power. Among recent additions to the portfolio are India’s Haldiram Snacks Food, French renewable energy company Neoen, US-based Progressive Corporation, and Yum China.

Alternatives

Temasek, it shares, is also stepping up its allocation to alternative assets, including private credit, hedge funds and insurance-linked strategies, which the investment firm says provide portfolio diversification and, in many cases, steady cash yields uncorrelated to public markets.

Increasingly, the firm is looking toward “core-plus” infrastructure assets, such as artificial intelligence ( AI )-enabled data centres and energy transition facilities, which, it says, promise stable, inflation-linked returns and strong demand as the global economy digitalizes and decarbonizes.

The investment firm has been particularly active in the AI ecosystem, deploying capital across its value chain.

Its strategy includes direct investments in hyperscale computing and AI applications, early-stage venture building through entities like Aicadium and minden.ai, and strategic partnerships, such as the AI Infrastructure Partnership with BlackRock, Microsoft and Global Infrastructure Partners.

Sustainability

On the sustainability front, Temasek invested S$4 billion during the year into projects aligned with its Sustainable Living strategy, including partnerships with Brookfield’s Global Transition Fund and Energy Capital Partners.

Temasek, as of March, held S$46 billion in sustainability-linked assets. It remains committed to halving the net carbon emissions of its portfolio from 2010 levels by 2030 and achieving net zero by 2050, though it acknowledged the difficulty of meeting these targets given its exposure to hard-to-abate sectors, such as aviation and utilities.

Total portfolio emissions for FY2025 stood at 21 million tonnes of carbon dioxide equivalent ( tCO2e ), unchanged from the previous year. However, portfolio carbon intensity, measured by emissions per million Singapore dollars ( S$M ) of portfolio value, improved from 73 to 63 tCO2e/S$M.

Temasek chief executive Dilhan Pillay, who notes the challenges of a world shaped by geopolitical tension, climate disruption and AI-driven change, nonetheless stresses that the sovereign remains focused on building a portfolio capable of navigating uncertainty and delivering sustainable returns across generations.