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Singapore funding agency Temasek Holdings releases annual report – EAST AUTO NEWS

Singapore funding agency Temasek Holdings releases annual report


Temasek Holdings sign up Singapore on July 8, 2010.

Roslan Rahman | AFP | Getty Pictures

Singaporean state funding agency Temasek Holdings on Tuesday reported a plunge in its returns over a one-year interval amid a difficult financial atmosphere compounded by commerce tensions between the U.S. and China.

In its newest annual report, Temasek — a carefully adopted investor globally — stated its one-year shareholder return was 1.49% for the monetary 12 months to March 31. That is a serious decline from 12% within the prior 12 months.

Over a long run horizon, the corporate’s shareholder returns have been 9% for a 10-year interval and seven% for a 20-year timeline — in comparison with 5% and seven%, respectively, a 12 months in the past.

“We stay watchful across the dangers of a late cycle recession within the US. Brexit and political fragmentation proceed to weigh on Europe, whereas China has but to maneuver absolutely to restructure its economic system for long run sustainability,” Lim Boon Heng, Temasek’s chairman, stated within the annual report.

“These points have key repercussions on world sentiments and sustainable development for the long term,” he added.

Dealing with higher macroeconomic headwinds, the corporate made extra divestments than investments within the final monetary 12 months: Temasek let go of 28 billion Singapore {dollars}’ price of property, whereas including 24 billion Singapore {dollars}.

Temasek — which focuses on fairness investments — stated it divested from Gilead Sciences, Cargill Tropical Palm and Klabin.

General, the worth of Temasek’s portfolio was 313 billion Singapore {dollars} (about $230 billion) as of March 31 — rising from 308 billion Singapore {dollars} within the earlier 12 months.

Dilhan Pillay Sandrasegara, chief govt of Temasek Worldwide, described the previous 12 months as “difficult and tough.”

He advised CNBC’s Tanvir Gill that elements such because the U.S.-China commerce conflict affected the efficiency of Asian markets — the place Temasek is closely invested in.

Temasek Worldwide is the funding arm of Temasek Holdings.

‘Opened and alert’

Temasek, which invested primarily in Singapore corporations in its early days, has become a worldwide participant lately.

Greater than 70% of the corporate’s portfolio publicity is now outdoors its dwelling nation and spreading throughout different Asian nations, Europe and the Americas.

Within the final monetary 12 months, Singapore and China have been the 2 largest markets for Temasek’s investments. New investments made on the planet’s second-largest economic system embody WeWork China, a co-working house supplier, and Gracell Biotechnologies, a cell remedy firm.

Given financial and geopolitical dangers, Temasek will stay cautious in making investments however intends to be “opened and alert” to alternatives, stated Png Chin Yee, the corporate’s senior managing director for portfolio technique and threat group.

However Png, who’s additionally Temasek’s head of monetary companies, warned that funding returns could also be affected.

“If development continues to be weak, the low rate of interest atmosphere is more likely to persist into the foreseeable future. This might decrease returns expectations for the long term,” she stated.

Singapore funding agency Temasek Holdings releases annual report – EAST AUTO NEWS
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