Temasek’s Portfolio Gains Include $4 Billion From Government

Temasek Holdings Pte’s performance was helped by a S$5 billion ($4 billion) capital injection from Singapore’s Ministry of Finance, according to the state-owned investment firm’s annual report.

Temasek’s portfolio rose by S$8 billion to S$223 billion as of March 31, the company said in its review on July 8. The gain included the funds from the ministry, its only shareholder, “as part of their asset allocation decision,” it said.

The total shareholder return of Temasek, which includes dividends and capital gains and excludes capital injections, shrunk to 1.5 percent for the past year from 8.9 percent in its previous fiscal year, as holdings in Asia remained little changed. The funds from the ministry boosted its portfolio gain to 3.7 percent, according to data in the annual report.

The additional capital came from government funds, including proceeds from tradable Singapore Government Securities, any government surpluses as well as proceeds from land sales, the ministry said in an e-mailed statement.

Singapore’s government had injected S$10 billion in cash in 2007, the largest since Temasek’s inception in 1974, the ministry said in August 2008.

Temasek is increasing investments in consumer, technology and health-care companies as it becomes less reliant on financial assets.

The city-state’s investment firm put $1 billion in U.S. biopharmaceutical firm Gilead Sciences Inc. last year and has made multiple investments in China’s Alibaba Group Holding Ltd. as Chief Executive Ho Ching steered Temasek’s focus to newer industries with the potential for higher returns. By contrast, the proportion of financial holdings stood at the lowest since 2008 as the value declined.