Temasek Holdings Pte has ridden a rally in global equities, with a focus on developed markets, that probably helped the Singapore state-owned investment firm’s assets reach a record.
Assets at the firm, which releases results this week, may have increased 16-18 percent to as much as S$263 billion (US$195 billion) in the year to March 31, Bloomberg reported, citing estimates by Institutional Investor’s Sovereign Wealth Center and CMC Markets.
That would be the biggest jump in assets in five years and drive the total beyond last year’s all-time high of S$223 billion.
“They had a great year for their equity investments,” said Nicholas Teo, a Singapore-based strategist at CMC Markets who has been following Temasek’s annual results over the last 10 years.
“It shows how aggressive their investment style is compared with other state investors.”
Temasek chief executive Ho Ching, who has been on a sabbatical since April, oversaw more investments in mature markets, taking advantage of recovering economic growth in the United States and Europe.
The Standard & Poor’s 500 Index added 10 percent and the Stoxx Europe 600 Index jumped 19 percent in the year to the end of March, boosting Temasek’s foreign assets.
Holdings in Singaporean companies and stakes in Alibaba Group Holding Ltd. and Virtu Financial Inc. may have helped the company’s portfolio increase as much as S$40 billion, which would be the biggest jump since 2010, when it climbed S$56 billion, according to its website.
Temasek is the biggest shareholder in about a third of the 30 members in the Straits Times Index, including Singapore Telecommunications Ltd., of which it owns 51 percent, and DBS Group Holdings Ltd. with 28 percent.
The index gained 8.1 percent in the year to March 31.
Temasek completed 54 deals last fiscal year, up from 47 in the 2013-2014 period, Sovereign Wealth Center data shows.
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