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Temasek's net profit down 1% despite increasing its portfolio by 8.6%

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Singapore investment company, Temasek Holdings, has reported a net profit of $10.6 billion for the financial year ended March.

This is one per cent lower than the previous year.

However, it recorded a record net portfolio value of $215 billion, 8.6 per cent higher.

TSR or Total Shareholder Return, a key performance measure, was 8.86 per cent for the year.

Temasek Chairman, S Dhanabalan, said the severe disruptive risks from the global financial crisis have subsided although structural risks have not been completely resolved.

While Temasek has increased its exposure in North America and Europe, Asia continues to attract the largest proportion of its investments.

Mr Dhanabalan said Temasek remains anchored in Asia and is optimistic about its long term growth.

During the year, Temasek made net investments of seven billion dollars.

More than half of this was in the energy and resources sector and in North America and Europe.

But financial services continue to be its largest portfolio exposure at 31 per cent, with energy and resources taking up 6 per cent of the portfolio.

On a geographical basis, Singapore and China remain its largest exposures at 30 per cent and 23 per cent.

Its exposure to North America and Europe grew to 12 per cent, from eight per cent two years ago.

Asia formed 71 per cent of its portfolio.

If Singapore was excluded, Asia represents 41 per cent of its portfolio.

CEO of Temasek, Ho Ching, said while Asia and Latin America will continue to be a focus area, there are increasing opportunities in North America and Europe.

Temasek is setting up offices in London and New York to support its investment activities in these markets.

*Article first appeared on http://news.xin.msn.com/en/singapore/temasek-reports-flat-net-profit-of-dollar11b

 


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