Singapore’s state-owned fund Temasek announced Wednesday that it has reported a net portfolio value (NPV) of S$434 billion ($339 billion) for the financial year ended 31 March 2025, up S$45 billion ($35.13 billion) from a year ago.

Temasek said in a statement that this increase was largely due to the strong performance of its listed Singapore-based Temasek Portfolio Companies (TPCs) and direct investments in China, the US,and India.

On a mark to market basis, the firm’s NPV as at 31 March 2025 would have been S$469 billion ($366.18 billion), reflecting a value uplift of S$35 billion ($27.33 billion) from its unlisted portfolio.

Looking ahead, the firm said geopolitical tensions remain a key risk, which will likely dampen global growth.

Despite heightened trade and geopolitical uncertainties, the firm said it continues to hold a constructive outlook on investment opportunities.

It noted the US remains a key investment destination for the firm, while it continues to maintain a diversified global exposure through its investments primarily in Europe, China, and India.

According to the statement, the firm continues to invest in emerging and established market leaders that generate stable cash flows and earnings with manageable exposure to trade tensions — particularly those with access to large domestic markets, resilient supply chains, and strong pricing power.

It noted the firm favors investments that have a steady growth outlook and can deliver returns with a narrower range of outcomes over time.

The firm also invests in alternative assets enables its portfolio diversification beyond traditional equities while potentially generating higher risk- adjusted returns.

Through its partnerships, funds, and asset management companies, the firm scaled its exposure in key areas like private credit and hybrid solutions, private equity funds, as well as liquid alternatives and uncorrelated strategies that include hedge funds, closed block insurance, and royalties.

It noted its allocations to some of these areas can also provide steady cash yields.

The firm also highlighted that increased electrification, coupled with rising artificial intelligence (AI) data center demand, has created attractive opportunities in this space.

It is noted that the firm has been investing across the AI value chain: in leading companies that have reached break-out scale with proven traction; in businesses enabling the broader AI ecosystem, such as data centers; and in innovative early-stage companies.

The firm’s multi-pronged approach includes direct investments, such as in hyperscalers as well as in AI applications; building ventures like Aicadium and minden.ai; and strategic fund partnerships, including participation in the AI Infrastructure Partnership established by BlackRock, Global Infrastructure Partners, Microsoft, and MGX.

At the same time, the firm engages its Singapore-based TPCs, which in aggregate have almost S$200 billion ($156.15 billion) in revenue, on their AI adoption strategies in future-proofing their businesses.

“Despite increasing global uncertainties, we must remain steadfast in our commitment to building a purpose-driven institution and constructing a portfolio that delivers sustainable returns over the long term,

“Temasek will thrive when each generation of the Board and management abides by our purpose and stays guided by our values, so every generation prospers,” said Lim Boon Heng, Chairman, Temasek Holdings.

Meanwhile, Dilhan Pillay, Executive Director and Chief Executive Officer, Temasek Holdings, said that against the backdrop of a multipolar world, uncertainty is exacerbated by the AI-driven revolution that will transform and disrupt many industries in the decade ahead and beyond, while the climate crisis continues to be an existential threat to humanity.

“At Temasek, we remain clear-eyed about the risks ahead and continue to navigate the ambiguities that arise in an ever-changing global environment with a pragmatic approach,

“As an organization, we will continue to adapt and retool to seize opportunities in the evolving business and investment landscape, actively managing our exposures in our three portfolio segments to enhance resilience and deliver sustainable returns over the long term,” he added.

According to the statement, the firm also remains unwavering in its commitment to sustainability as an integral part of building a thriving and resilient portfolio over the long term.

During the year, the firm invested S$4 billion ($3.12 billion) in line with the Sustainable Living trend.

This included opportunities to invest alongside partners to support the energy transition, such as Brookfield for its Global Transition Fund; and Energy Capital Partners for the acquisition of Atlantica Sustainable Infrastructure, a UK-based clean energy transition company focused on renewable energy.

As at March 31, 2025, the firm’s portfolio value of investments aligned with this trend was S$46 billion ($35.92 billion).

In terms of its decarbonization journey, the firm continues to strive towards reducing the net carbon emissions attributable to its portfolio to half of its 2010 levels by 2030, with the ambition to achieve net zero by 2050.

These targets remain challenging given the concentration of portfolio emissions from companies in hard-to-abate sectors, such as aviation, maritime, power, and utilities.

In these sectors, solutions to drive significant emissions reductions, such as Sustainable Aviation Fuel, have yet to be commercialized and scaled for adoption at a competitive cost, said the firm.

For the financial year ended March 31, 2025, both Total Portfolio Emissions and Portfolio Weighted Average Carbon Intensity for the firm remained at 21 million tons of carbon dioxide equivalent (tCO2e) and 92 tCO2e/S$M revenue respectively.

Its Portfolio Carbon Intensity decreased to 63 tCO2e/S$M portfolio value, from 73 tCO2e/S$M portfolio value for the previous financial year.

Temasek’s ClavystBio, Lightstone Ventures back Allay Therapeutics’ $57.5M Series D financing