Temasek reports first loss in four years

Singapore sovereign wealth fund Temasek recorded first loss in four years while its portfolio in mainland China first exceeded that of Singapore.

Temasek reported its worst result since 2016 with a portfolio decline of 2.28 percent for the year ended March 31. Its net portfolio value fell to 306 billion singapore dollar (HK$1.73 trillion) from S$313 billion a year earlier. The fund flagged an uncertain outlook for global economic recovery and a challenging environment for long term investors.

Temasek's holdings in China surpassed its home market of Singapore for the first time following gains in companies including Alibaba (9988), according to the state investor's annual report.

Temasek's exposure to China rose to 29 percent of assets as of March 31, compared with 24 percent for Singapore, the lowest percentage exposure for its home market since the company was formed in 1974. The firm's biggest local holdings, from Singapore Telecommunications to DBS, saw their valuations fall this year.

Its exposure to China, which includes stakes in Industrial & Commercial Bank of China (1398) and Meituan Dianping (3690), compared with 17 percent in North America and 10 percent in Europe.

"We are optimistic on China over the medium term," said Yeoh.