Temasek's Negative Annual Return Signals Fragile Global Economy

Singapore's state investment company, Temasek, reported its worst returns in seven years, with a 5.07% decline in its one-year total shareholder return in Singapore dollars for the financial year ending March 31, 2023. The challenging macroeconomic and geopolitical environment, including restrictive macro policies, lower growth, and geopolitical tensions, contributed to the decline. Despite this, Temasek's decline in annual shareholder return compared favorably with global stock market returns. The company's net portfolio value decreased to $382 billion Singapore dollars, and it made adjustments to its portfolio exposure, reducing its financial services exposure and increasing its exposure to transportation and industrials. Temasek also slowed down its investment pace and adopted a cautious approach due to liquidity tightening.