Temasek Holdings' portfolio lost more than 40 billion Singapore dollars (27.72 billion US) in value as of end-March from a year before, the state investment firm's chief executive said Wednesday.
Ho Ching, the wife of Singapore Prime Minister Lee Hsien Loong, said the company anticipated the drop in a review last year.
"Indeed, it had turned out to be so and more," Ho told a forum organised by the Institute of Policy Studies think-tank.
Temasek's investments were hammered by the financial and economic crisis that led global markets to plummet in the second half of last year.
Singapore said earlier this year that Temasek's overall portfolio value had fallen by 58 billion dollars to 127 billion dollars from end-March to November of 2008.
"The Temasek journey will not always be smooth. As we sail in choppy waters, we may need to take shelter if we see dark clouds coming," Ho said.
She added that the search for her successor was going ahead after the "unfortunate" scrapping of a plan to appoint US businessman Charles "Chip" Goodyear.
The former head of resources giant BHP Billiton would have been the first foreigner to run the once-secretive sovereign wealth fund and his appointment just a few months ago was hailed as part of an effort to transform Temasek into a global enterprise.
"It is unfortunate that both the board and Chip recently came to the amicable and mutual conclusion that it was best not to proceed with the CEO transition," Ho told the forum.
"This does not mean however that we should stop this discipline of succession review. We will continue to do so regardless of who takes the helm as CEO at Temasek."
The investment firm said its decision to rescind Goodyear's appointment was due to differences over strategy.
When asked to elaborate on Wednesday, Ho said: "We continue to hold Chip in very high regard for his professionalism and his integrity so all those little funny rumours you hear of his management style, and all that, you can disregard."
The firm has said it remains a long-term investor and remains focussed on Asian investments due to the region's strong growth prospects.
Ho, 56, said that Temasek will invest 70 percent of its resources in Asia, including Singapore, with 20 percent earmarked for investments in industrialised countries.
The rest will be used for markets in Latin America and Africa, she added.
"We remain very comfortable with Asia," said Ho, who will stay on as CEO of Temasek, which manages a global portfolio invested in a wide range of sectors from airlines to energy, resources and consumer products.
"Growth will not be a straight line trajectory. We can expect bumps along the way, but the longer term potential remains strong. As Asia continues on its development curve, it will also de-risk."
