Singapore’s Temasek reports 2.2 per cent drop in portfolio value amid pandemic
- The drop to US$220 billion in the latest year compared with a 1.6 per cent gain to more than US$225 billion a year earlier
- As it unveiled preliminary performance, the state-owned fund said it was ready to invest in volatile market opportunities
The decline comes as fund managers globally struggle with the pandemic’s effect on both financial markets and the real-world economy. Some stock markets have bounced back amid hopes of a fast recovery, yet rising case numbers have pushed many countries back into lockdown, hurting consumer spending and limiting already restricted travel.
“The market rebound we’ve seen in recent weeks should be viewed with caution,” Temasek International CEO Dilhan Pillay said in pre-recorded comments released on Tuesday. “The new Covid-normal will be even more complex. A lower-returns environment, geopolitics and strategic rivalries and the pandemic will create even more uncertainties for investors.”
Pillay said Temasek had been doing well in the three quarters leading up to the coronavirus outbreak, and that markets had rebounded since March. He also emphasized that the company looks to long-term returns and said the portfolio, which includes both public and private holdings, had performed relatively well.
“We ended the year in a net cash position with a strong balance sheet,” he said. “This positions us well to ride through the tough times to position our companies for future growth.”
