Temasek Review 2018
Investor

Investing for Generations

We constantly reshape our portfolio in line with our views of long term trends, and an eye on medium term risks.

During the financial year ended 31 March 2018, we invested S$29 billion and divested S$16 billion. Technology, life sciences, agribusiness, non-bank financial services and consumer made up nearly half of our new investments. These sectors now constitute 26% of our portfolio, up from a 5% share of a smaller portfolio in 2011.

Looking ahead for the year, we expect to be more cautious, given the heightening near term market risks against gradually slowing growth. However, we will continue to seek out intrinsically investable opportunities.

S$29b

Investments
for the year

Investment Highlights

Technology companies with distinct competitive advantages remain a key focus.

Global Healthcare Exchange provides an electronic trading exchange and cloud-based supply chain software for healthcare providers and suppliers, while Tencent gives us exposure in China to online social networking, entertainment and games. Other investments included BluJay, a provider of supply chain execution software solutions for the logistics sector; Intapp, a growing vertical software provider focusing on business applications for the legal industry; ams AG, a leading analogue semiconductor platform focused on sensor solutions; and Internet Brands, an operator of a portfolio of health websites.

Technology, life sciences, agribusiness, non-bank financial services and consumer made up nearly half of our new investments.

Our focus in financial services was in the non-banking sub-sectors, with a growing exposure in the payments space through the global networks of Visa and Mastercard; Adyen, a technology-enabled global payment services company; and Worldpay, a company enabling businesses to accept online, mobile and point-of-sale payments.

Within the life sciences sector, investments included Tessa Therapeutics, a Singapore-based biotech company developing cell therapy for treatment of cancer; and Pear Therapeutics, a US-based digital therapeutics company that delivers reimbursable, regulated and prescription software to treat behavioural health and other diseases.

Boortmalt, a producer of premium malt ingredients, and Farmer's Business Network, an agriculture analytics platform for farmers, were some of our agribusiness investments during the year.

The US again accounted for the largest share of our new investments during the year. We invested in DowDuPont, a global diversified chemicals and agriculture company; and Boeing, an aerospace company.

Technology companies with distinct competitive advantages remain a key focus.

Investments in Europe included Airbus SE, a manufacturer of aircraft, helicopters and defence equipment; Legrand, a global supplier of low voltage electrical equipment; Busy Bees, a provider of childcare and early education services with 500 nurseries; and Sportswear Company, which manufactures casual premium menswear under the brand Stone Island.

In China, we invested in Midea Group, the country’s largest automation-enabled home appliance company; and WuXi WuXi NextCODE, which offers tools and services globally for generating, managing and analysing genomic data.

Our key divestments during the year included our positions in Dufry and Gaztransport & Technigaz. We partially divested Celltrion Inc and Celltrion Healthcare, Industrial and Commercial Bank of China, Danamon and Burger King Brazil, while continuing to retain significant exposures in each of them.

S$16b

Divestments for the year

Post March 2018, we made a major investment in Bayer, a European life sciences company with global market leadership in crop science. We also partnered Schneider Electric India in the proposed merger of their Low Voltage & Industrial Automation products business with Larson & Toubro’s Electrical and Automation division; and participated in the Series C equity financing of Ant Financial, a China-based fintech company that operates the flagship Alipay payments platform.

Enabling Growth Capital

During the year, Heliconia Capital invested in several Singapore-based small & medium enterprises (SMEs) in consumer and healthcare. Investments include Ethan K, a high-end luxury couture house which crafts exotic leather; and Health Management International, a healthcare provider with presence in Singapore, Malaysia and Indonesia.

Heliconia continues to work with portfolio companies to create value for their businesses. In line with Heliconia’s investment horizon, it has also commenced exits for some portfolio companies. Some of the earlier portfolio companies, such as Razer, were successfully listed during the year.

The S$600 million International Partnership Fund, announced in February 2017, came into operation in the second half of the year. Heliconia has since been actively evaluating potential opportunities in the Southeast Asian region, in partnership with Singapore-based SMEs.

Fostering Innovation

In 2017, we invested in several innovative early stage companies in agriculture, healthcare, and digital media.

Synthetic biology is an emerging focus, especially for sustainable food production. Our portfolio includes Impossible Foods, which develops meat products from plants; and Perfect Day, which produces animal-free dairy ingredients.

In January 2018, we agreed to form a joint venture with Kuehne + Nagel, a leading global logistics player, to invest in early stage logistics technology companies.

Transforming Enterprises

In December 2017, NTUC Income (Income) and Fullerton Fund Management (FFMC) announced a strategic partnership to appoint FFMC as the investment manager of the portfolio of Income assets.

The strategic partnership establishes FFMC as one of the largest locally owned asset management companies in Singapore, with its assets under management increasing to over S$40 billion.

Related Content