According to the latest results released for March 2007, by Singapore based Temasek Holdings (Private) Ltd its net portfolio value has crossed the $100 billion mark.
The net portfolio value now stands at $108 billion or S$ (Singapore dollar) 164 billion, up from $80 billion (S$ 129 billion) in the previous year.
Manish Kejriwal, senior managing director, Temasek Holdings Advisors India Pvt Ltd India reckons that India’s share of investments, roughly at 3% of the total portfolio, will rise to around 10% of the portfolio by 2010.
?India’s investment performance has spurred the returns Temasek has been able to record,? says Kejriwal. Overall, Asian investments, not accounting for Singapore and Japan, now account for 40% of the total portfolio, up from 33% in the previous year.
Singapore-based investments have a 38% share and the rest is accounted by the OECD countries.
Investments post 2002, when the focus on Asia began, have been delivering a five year compounded return of 38% per year, compared to a 17% return over the same time frame for rest of the portfolio. Temasek has made strategic investments in companies like ICICI Bank, Mahindra & Mahindra, Tata Teleservices and Firstsource Solutions, the recently listed BPO unit.
New investments include the Tata Sky, GVK Power Infrastructure and a 4.99% stake in Bharti Airtel. Apart from this, Temasek is also active on the trading front, making most of value opportunities available in the Indian market.
At a 38% share, financial services, dominates the Temasek portfolio. Telecom and media together account for 60% of the group’s exposure. Even though the market seems to be overvalued, Kejriwal believes that there would always be opportunities for both strategic investing and trading. The group looks forward to increasing their exposure to sectors that would be able to participate in the consumer spending opportunity.
