Temasek Achieves New Portfolio Milestone Despite High Divestments
In a remarkable financial turnaround, Singapore’s sovereign wealth fund, Temasek Holdings, reported a record net portfolio value of 434 billion Singapore dollars ($324 billion) for the fiscal year ending March 2025. This figure marks an impressive increase of over 11% year-on-year, reflecting the fund’s robust strategic repositioning amid a shifting global economic landscape.
Growth Driven by Diverse Global Investments
Temasek attributes this portfolio growth primarily to the exceptional performance of its publicly listed Singaporean companies such as DBS Group, CapitaLand, and Singapore Airlines. Beyond Singapore’s borders, the investor also saw substantial gains from direct stakes in key markets including China, the United States, and India.
On a mark-to-market basis, factoring in valuations across its holdings, Temasek’s portfolio value would rise further to SG$469 billion, bolstered by a SG$35 billion contribution from its unlisted investments—an area that often provides greater growth potential albeit with higher complexity.
Active Portfolio Management Amid Macro Uncertainties
Demonstrating a proactive approach, the fund undertook significant portfolio rebalancing in response to evolving macroeconomic and geopolitical conditions. Within the fiscal year, Temasek made SG$52 billion in investments and executed SG$42 billion in divestments—the highest levels since 2022, underscoring the fund's commitment to dynamic asset management rather than a passive hold strategy.
Rohit Sipahimalani, Chief Investment Officer of Temasek International, told CNBC in an exclusive interview that the portfolio reshaping aims to enhance resilience for the coming years given the complex global backdrop. "We are positioning ourselves towards sectors and regions that hold promising long-term potential while managing risks effectively," he explained.
Spotlight on the United States: A Strategic Investment Hub
The U.S. continues to cement its role as Temasek’s largest destination for capital deployment. The firm highlights America’s strong business fundamentals, deep capital markets, and a culture of rapid innovation—particularly in pioneering technologies like artificial intelligence (AI)—as pivotal factors sustaining its investment allure.
"U.S. capabilities in AI and related fields are transformative and have ripple effects across multiple sectors," Sipahimalani noted. Despite existing concerns about immigration policies, tariffs, and fiscal tightening, Temasek believes these headwinds have likely reached their peak but remains vigilant to ongoing policy shifts.
Increasingly, the Americas account for 24% of Temasek’s geographic exposure, a step up from 22% last year. This strategic weighting signals confidence in continuing growth opportunities within the U.S. and Latin America.
Shifts in Asia-Pacific and Global Exposure
While maintaining a constructive outlook on Asia, Temasek modestly trimmed its exposure to China and the broader Asia-Pacific region by 1% each amid challenging growth prospects and geopolitical tensions. The firm acknowledges that China’s official growth targets could be difficult to meet given global uncertainties, softer consumption trends, and trade disruptions.
Nonetheless, Temasek identifies "positive signs" such as enhanced government spending and efforts to stimulate consumption. The fund remains optimistic about China's long-term trajectory, pinpointing investment opportunities in green technologies, life sciences innovation, and resilient domestic brands scaling their footprint.
Additionally, India’s share of Temasek’s portfolio edged up to 8% from 7%, reflecting the country’s expanding market potential and economic dynamism.
Geopolitical Risks and Future Outlook
Temasek explicitly flags geopolitical tensions and trade uncertainties as persistent risks capable of dampening global growth. However, its cautiously optimistic stance highlights a belief in the adaptive power of markets and innovation ecosystems.
- Record-breaking portfolio value driven by strong listed companies and international direct investments
- Active rebalancing with SG$52 billion invested and SG$42 billion divested in 2025 fiscal year
- U.S. remains top investment frontier due to innovation leadership and market depth
- Measured retreat from China offset by increased exposure to India and sustained belief in Asia’s growth potential
- Geopolitical tensions continue to pose risks, though tempered by strategic portfolio resilience
Contextual Insights: Why Temasek’s Strategic Moves Matter
Temasek’s investment shifts mirror larger global trends where sovereign funds diversify away from traditional geopolitical risk hotspots in favor of regions exhibiting technological dynamism and regulatory stability. Their bullish stance on the U.S. AI sector reflects a broader global investment pivot towards digital transformation, a key driver of economic resilience in the post-pandemic era.
Moreover, Temasek’s approach underscores the growing importance of active portfolio management by sovereign funds to navigate heightened uncertainties—balancing long-term value creation with risk mitigation. This is particularly relevant to American policymakers and investors observing how global capital allocators interpret shifts in trade and diplomacy.
Editor’s Note
Temasek’s latest results provide a nuanced window into how a leading sovereign wealth fund is adapting to a rapidly changing world—embracing innovation while managing geopolitical headwinds. For U.S. stakeholders, the fund’s sustained confidence in American innovation ecosystems signals an opportunity to enhance collaboration, investment, and policy frameworks that support cutting-edge technologies.
At the same time, Temasek’s evolving exposure to Asia highlights the delicate balancing act sovereign investors must perform amid trade tensions and economic recalibrations. As global investors navigate an uncertain decade, Temasek’s experience offers valuable lessons on resilience, adaptability, and strategic foresight.
