SINGAPORE: Temasek Holdings on Tuesday (July 9) reported a record net portfolio value for the past fiscal year – the third in a row – despite withdrawing the investment rate to navigate a tough environment.
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For the year ending March 31, its net portfolio increased to $ 313 billion from $ 308 billion a year ago, according to its latest Annual Review.
However, one year's total shareholders' returns fell to 1.49 percent, compared to 12.19 percent a year ago. Dividend income remained stable at $ 9 billion for the year.
Temasek remains cautious among macroheads that include a long-term trade between the United States and China.
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The investment company Singapore invested $ 24 billion in the year's survey and sold $ 28 billion, marking a reversal from the previous fiscal year when the investments exceeded the divestments, as Temasek increased its sales rate in the light of macroeconomic headwinds, said a press release.
These departures included US biopharmacy expertise Gilead Sciences, Cargill Tropical Palm and Brazilian paper manufacturer Klabin, which also reduced its efforts in the Chinese Internet behemoth Alibaba and global tech company CenturyLink, Even though it said it continues to hold substantial stocks, the United States accounted for the largest share of new investments, followed by Europe and China, while older economies accounted for 60 percent of Temasek's portfolio, while emerging economies, such as Latin America and Africa. , the remaining 40 percent.  Overall, Asia's anchor of Temasek's portfolio remains 66 percent, with Singapore and China accounting for 26 percent each. It has also increased its exposure in Europe (10 percent) and North America (15 percent) in line with new trends and opportunities.
The financial services (25 percent) remain the largest sector, with new investments continuing to focus on non-bank financial technology and payment platforms such as China's Ant Financial.
Technology, media and telecommunications, of 20 percent, was also a key investment focus.
"In general, we handle our portfolio and liquidity for resilience, especially in anticipation of a more challenging view. We were concerned about the risk of inconvenience last year and have deliberately tempered our investment rate," said Temasek's president and chief executive Chia Song Hwee. ] "We continue to be disciplined in our investment strategy and remain alert over the macro," he added.
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] Concerns remain about increasing tensions between the United States and China, which may further moderate global growth.
Temasek also remains alert about the risk of a recession in the United States, while the risk of disorderly brexit and political fragmentation continues to weigh on Europe. 19659006] Prospects for China may come under more pressure from the long standoff with the United States, added it, although this may be reduced by its evidence thethe of macro risk and political headroom.
Overall, Temasek remains optimistic about China's medium-term range owner in the back of timely and targeted reforms.
In Singapore, activity is moderated along with global growth, with increasing downside risks from global tensions.
However, the potential for increased trade and investment in the growing ASEAN region can favor Singapore in the long run, and some segments of the economy, including professional, financial and technological services, are expected to remain resilient.