SINGAPORE, July 10 (Xinhua) -- Singapore's state-owned holding company Temasek's net portfolio value hit a record high of 308 billion Singapore dollars (about 227.35 billion U.S. dollars) in the financial year ended on March 31, 2018, which was 33 billion Singapore dollars up from a year ago, the company said in its annual review on Tuesday.
The Temasek Review 2018 said the company's one-year total shareholder return was 12.19 percent, with compounded annualized returns of 15 percent since inception in 1974. It invested 29 billion Singapore dollars and divested 16 billion Singapore dollars in the financial year.
The dividend income of Temasek from portfolio was 9 billion Singapore dollars for the financial year, the report added.
The report said Temasek's portfolio profile was a result of the company's investments in aggregate, adding that Temasek's top 10 holdings represented 41 percent of the total net portfolio value.
"Our largest geographic concentration by underlying assets remains in Asia, with 27 percent and 26 percent in Singapore and China respectively," the report said. "The United States is the third largest at 13 percent, followed by Europe at 9 percent."
The proportions of distribution to Singapore and China were 29 percent and 25 percent respectively for the financial year that ended on March 31, 2017.
According to the Temasek Review 2018, the Chinese companies invested by Temasek include China Construction Bank Corporate, Industrial and Commercial Bank of China Limited, Ping An Insurance (Group) Company of China, Ltd., Alibaba Group Holding Limited, Tencent, Midea Group and Wuxi NextCODE.
Looking forward, Temasek would remain optimistic on China's medium term trajectory, and expect policymakers to transition Chinese economy towards a more sustainable growth path, said the report.
The Temasek Review 2018 also revealed that technological advances, demographic shifts and changing consumption patterns are disrupting traditional business models or creating new opportunities. Temasek is approaching these opportunities through six key trends, which are longer lifespans, rising affluence, sustainable living, smarter systems, the sharing economy and a more connected world.
Alpin Mehta, Temasek's Managing Director of Investment, noted that the company might recalibrate and slow investment pace over the next nine to 18 months, seeing the probability of increased downside risks in the near term.
"On the other hand, we do see a robust pipeline of opportunities for this year," he added. "In particular, we will actively seek attractive opportunities in promising sectors and markets driven by transformational technologies, demographic shifts and changing consumption patterns."
Incorporated in 1974, Temasek is a global investment company headquartered in Singapore.
