Singapore's Temasek hits record portfolio value, eyes more investment in AI, infrastructure and private credit

• Portfolio growth was boosted by Singapore companies and a 23% rise in the Straits Times Index, though returns were reduced by 2% due to the Iran war in February and a stronger Singapore dollar
• Temasek will increase AI-related exposure from 6% to 15% by 2031, investing across cloud services, foundation models like Anthropic and OpenAI, and AI applications
• The firm plans to more than double private credit allocation from 2% to 5% by 2031, and expand 'core-plus' infrastructure (renewable energy, nuclear, decarbonization) to 5% within five years

Summary

Key Performance Metrics:

Singapore's state-owned investor Temasek Holdings reached a record net portfolio value of SG$518 billion ($401 billion) for the year ended March 31, marking its second consecutive annual high. The firm delivered a 10.5% total return for the one-year period, though returns were dampened by approximately 2% due to the Iran war that began February 28 and a stronger Singapore dollar.

Portfolio Performance:

Strong performance was driven primarily by Singaporean holdings, benefiting from a 23%+ surge in the Straits Times Index between April 2025 and March 2026. Key holdings include DBS Group, Singtel, and PSA International. Temasek executed SG$31 billion in divestments, including a stake sale in Schneider Electric India in June 2025. However, longer-term returns showed weakness with five-year total returns at 3% and 10-year returns at 4%.

China Exposure:

Despite reduced allocation percentages (from 22% to 18% over three years), Temasek remains committed to China, increasing absolute exposure by SG$10 billion year-over-year.

Strategic Investment Focus:

Temasek outlined three priority areas for future deployment:

1. Artificial Intelligence: Plans to expand AI-related portfolio exposure from 6% to 15% by 2031, targeting cloud providers, foundation models, and applications. Current investments include Anthropic and OpenAI.

1. Private Credit: Aims to increase allocation from 2% to 5% by 2031, focusing on senior secured structures, corporate lending, and asset-backed financing.

1. "Core-Plus" Infrastructure: Will grow to 5% over five years, targeting renewable energy, nuclear energy, energy storage, and decarbonization technologies.