By Kevin Lim
SINGAPORE (Jul 11) -- Temasek Holdings, the investment company owned by the Singapore government, Tuesday reported total shareholder returns of 13% for the financial year ended March 2017, helped by a strong performance in equity markets.
Temasek said the value of its portfolio stood at 275 billion Singapore dollars ($197 billion) as at 31 March, up from S$242 billion a year ago.
Over a 10-year period, the Singapore state investor managed an annualized total shareholder return of 4%, while the 20-year return was an annualized 6%.
"We continue to focus on new longer-term opportunities such as technology, life sciences, agribusiness, non-bank financial services, consumer, and energy and resources. Over the last six years, our investments in these new focus areas have risen from 8% of our portfolio to 24% last year, delivering better returns than our average return from our portfolio as a whole," said Lee Theng Kiat, executive director and CEO of Temasek International.
Temasek said it had a "constructive outlook" on the global economy, although this was tempered by signs of political risks and stretched public market valuations.
"There are some political and geopolitical risks on the horizon, as well as some downside scenarios, but overall, we are cautiously confident that the various key economies will weather their medium-term challenges," said Michael Buchanan, head of strategy and senior managing director, portfolio strategy and risk group.
GIC, Singapore's sovereign wealth fund, on Monday warned of lower returns in coming years due to high asset valuations and geopolitical risks.
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