Temasek’s portfolio value sees $6b loss in FY 2023

Photo credit: Temasek

Singapore’s Temasek reported a 3% decline in its net portfolio value to US$287 billion – marking a US$6 billion loss – for the financial year ended March 31, 2023. The company also posted a -5.07% slump in one-year total shareholder returns.

Temasek attributed the slump to challenging global market conditions, including a reversal of gains in key sectors, heightened geopolitical tensions, and the implementation of tighter monetary policies.

The drop in its portfolio value follows a record high in 2022, when the state-owned investor experienced a rally in global equities and the public listing of some of its holdings.

“We slowed down our investment pace as we adopted a cautious approach amidst global uncertainties. We also saw deal activity slow down globally as liquidity tightened,” the company said in a statement.

Temasek’s activities in the past year resulted in a net investment of US$3 billion, after having invested US$23 billion and divested US$20.1 billion.

In March, Temasek joined Stripe’s US$6.5 billion round, representing one of the most notable deals it participated in this year.

Venture building has been a key part of Temasek’s business, with Song Hwee Chia, deputy CEO at Temasek International, saying in a previous interview with Tech in Asia that it was “the best way to deliver results.”

However, last year also saw Temasek tangled in the FTX mess, which resulted in the former writing down its full investment in the crypto exchange. Temasek previously invested US$210 million in FTX for a 1% stake and US$65 million into FTX US for a 1.5% stake.

The company later slashed the compensation of the team responsible for its investment into FTX as well as senior management as a form of “collective accountability.”

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