Temasek portfolio reaches record S$518bn as AI plans expand

Temasek Holdings’ net portfolio value rose to a record S$518 billion, or about $401 billion, for the year ended March 31, the Singapore state investor said. The firm reported a 10.5% total shareholder return for the financial year, helped by gains in its Singapore-listed holdings and proceeds from divestments.

The result marked a second consecutive annual record for the portfolio. Temasek said local portfolio companies performed strongly, while the Singapore equity market also advanced during the period.

The Straits Times Index gained more than 23% from April 2025 to March 2026, according to CNBC, supported by the Monetary Authority of Singapore’s Equity Market Development Programme, which was announced to unlock greater value in the country’s stock market. Temasek’s Singapore holdings include DBS Bank, Singapore Airlines and Singtel.

Temasek said returns would have been higher without the effect of the Iran war, which it said began on Feb. 28 and lowered portfolio value by about 2%. A stronger Singapore dollar also cut the one-year total shareholder return by about 2 percentage points, the firm said at a media briefing cited by CNBC.

Divestments and China exposure

Temasek completed S$31 billion of divestments during the period. Those sales included a reported S$8.18 billion disposal of a stake in Schneider Electric India in June 2025, according to the Straits Times.

Longer-term performance remained below the latest one-year figure. Temasek said its five-year total shareholder return was 4.6%, weighed down by market pressure in China between 2021 and 2024. Its 10-year total shareholder return was 7.1% in Singapore dollar terms.

The investor has reduced China as a share of its portfolio in recent years. Temasek said China exposure fell to 17% in 2026 from 29% in 2020. The firm said it “remains committed” to China and noted that, in absolute terms, its exposure to the world’s second-largest economy increased by S$10 billion over the past year.

New capital priorities

Temasek identified artificial intelligence, private credit and what it calls “core-plus” infrastructure as areas where it expects to allocate more capital. The infrastructure category includes renewable and nuclear energy, energy storage and decarbonisation technologies. Temasek said it intends to raise this exposure to 5% of the portfolio over the next five years.

The firm plans to increase AI-related exposure to 15% by 2031 from 6% now. Its existing investments include Anthropic and OpenAI in the United States, according to Temasek. The investor said it aims to deploy capital across the AI value chain, including cloud service providers, foundation models and AI applications.

“We see the rapid advancement of AI as a pivotal phase that will create vast new opportunities,” Temasek said.

Temasek also aims to lift private credit to 5% of portfolio value by 2031 from 2% currently. Private credit generally refers to lending arranged outside public bond markets. Temasek said it will focus on senior secured structures, which rank higher in repayment priority and are backed by collateral, across areas such as corporate lending, asset-backed financing and real estate credit.

This story draws on original reporting from CNBC.