Temasek's Jane Atherton on AI Investment Strategy, Risk Management, and Geopolitics

Jane Atherton, Head of Americas for Temasek, discusses the sovereign wealth fund's investment approach in a high-rate environment, focusing on resilience, duration management, and strategic allocation to generational technologies like AI.

■ Investment Philosophy and Market Outlook
- Assessment of US market resilience despite elevated risk-free rates
- Importance of fortress balance sheets and sustainable business models
- Liquidity management as a tool for opportunistic deployment

■ Artificial Intelligence Thematic
- Increasing AI exposure from 6% to 15% of the portfolio
- Diversification across the entire AI value chain beyond large language models
- Valuation discipline and entry price considerations for long-term holding

■ Risk Management and Systemic Concerns
- Addressing tail risks including geopolitical uncertainty and government debt
- Analysis of hyperscaler capex and data center infrastructure investments
- Mitigating circularity risks through diversified partner networks

■ Private Credit and Geopolitical Navigation
- Strategic increase in private credit allocation to 5% of the portfolio
- Navigating regulatory constraints between US and Chinese markets
- Investing in national champions with domestic supply chain insulation

This session provides investors with insights into how major institutional players construct resilient portfolios amidst shifting macroeconomic conditions and technological disruption.