Temasek, considered as one of the world’s largest investors, has rose by at least 10 percent, pushed by gains in shares of Chinese banks and domestic companies. It seems the investor company is reshaping its strategy so that it can focus on fast growing emerging sectors while simultaneously gearing up its investment teams for the bigger scenario. It is regarded as the biggest investor in a third of companies in Singapore’s benchmark index.
“The most important list equity markets for Temasek grew a lot last year,” said Javier Capape, director at the Sovereign Wealth Lab research centre at the IE Business School in Madrid.
One noteworthy detail here is that the company’s long-held investments in financials, such as China Construction Bank, DBS Group and Standard Chartered paid off last year as equity markets rebounded.
While Temasek is moving ahead and rolling with new pitches, analysts estimated its assets rise last year after it dropped by a fifth a year ago to $242 billion ($175 billion), its first drop since 2009. Singapore and China represents the largest share in its portfolio by underlying exposure.
“Markets have been kind to everybody last year, but are the gains sustainable?” inquired Song SENG Wun, an economist at CIMB Private Banking, who was the one to estimated Temasek’s portfolio value’s rise between 12 percent and 15 percent last year.
Temasek’s net portfolio value has almost doubled in the past year; thus it has been pouring more money into healthcare and life sciences industry, and has succeeded in branching out in North America last year by opening its office in San Francisco.