Temasek Just Dumped $33B -- Here's Where That Money Is Headed Next

Temasek isn't tiptoeing around portfolio shifts. The Singaporean state investor just posted its biggest annual sell-off ever divesting S$42 billion ($33 billion) worth of assets in the fiscal year ending March. At the same time, net portfolio value climbed to a record S$434 billion, boosted by strong performances from key local names like DBS Group (up 42%) and ST Engineering (up 69%). Listed equities now make up more than half its holdings the first time that's happened in four years as public market gains outpaced its private book. Temasek logged an 11.8% one-year return, a sharp rebound from the previous year's 1.6%, with net new investments totaling S$10 billion, including fresh positions in French renewable player Neoen and India's Haldiram Snacks.

But this wasn't just some spring cleaning. We have to be very disciplined in divestments, said CFO Png Chin Yee, pointing to exits ranging from Singapore Airlines bonds to Pavilion Energy (sold to Shell). CIO Rohit Sipahimalani added that the sales were pretty much across the board. China's weighting in the portfolio dropped again now at 18%, down from 29% in 2020 with Mapletree and CapitaLand still managing over S$11 billion in mainland property exposure. Despite some stability, Sipahimalani cautioned that China's property sector is not out of the woods. Meanwhile, the U.S. and India are getting more attention: Temasek's allocation to the Americas rose to 24%, and India climbed to 8%, marking a pivot toward regions with stronger near-term momentum.

Temasek is also leaning hard into AI. Stakes in Nvidia NVDA, Broadcom AVGO, and several AI-focused venture funds anchor a long-term bet that's just getting started. We're not even at the tip of the iceberg yet, said Deputy CEO Chia Song Hwee, who sees a 15- to 20-year runway ahead. Despite April's tariff headlines and political noise, management doesn't expect a global recession, with markets showing more resilience to macro shocks. The strategy now? Exit aging bets, reinvest in secular tailwinds like artificial intelligence and clean energy, and keep reshaping the portfolio with discipline. In Temasek's world, agility isn't optional it's the core playbook.