Temasek Holdings Pte Ltd, managing S$518bn (US$401bn), delivered a total shareholder return of 10.5% in the year to March, down from 11.8% and trailing the MSCI World benchmark, which returned 13% over the same period. The sovereign wealth fund seeks to accelerate performance after a decade of modest growth.

The firm will lift its AI exposure from 6% of the portfolio to 15% by 2031, targeting energy and data‑center operators, semiconductor makers, cloud providers, model developers such as OpenAI and Anthropic, and software infrastructure firms. New AI holdings will come mainly from public equities, a move that will trim weightings in other technology and telecom stocks.

Temasek Parliamentary Board already backed OpenAI in a $122bn capital‑increase and Anthropic in a $65bn funding round. Its core holdings include Nvidia, Amazon, Tencent, and Alibaba.

The investment group will also raise its private‑credit allocation from 2% to 5% by 2031, citing the asset class’s potential for equity‑like returns with lower risk than private equity. This shift signals confidence in private‑credit markets amid a wave of institutional inflows.

These moves position Temasek to capture growth in high‑technology sectors while balancing valuation risk, a strategy that may inform other sovereign wealth funds and large‑cap investors.