Singapore — Temasek Holdings reported a record portfolio value in 2016 as rallying global stocks helped rake in positive returns, but Singapore’s state investor also nearly halved its new investments, reflecting a cautious approach to markets. Temasek joined bigger state fund GIC and Chinese sovereign wealth fund China Investment in flagging competition from global funds for deals, which is pushing up valuations and threatening to drag down returns. "Looking ahead, we remain cautiously positive on global growth. But we are also cognisant of risks in valuations, liquidity and politics," Michael Buchanan, Temasek’s head of strategy, said on Tuesday. Temasek’s assets rose 14% to S$275bn ($199bn) in the year-ended March, after falling 9% a year ago. Its long-held investments in financials such as China Construction Bank, DBS Group and Standard Chartered paid off in 2016 as equity markets surged. Temasek’s one-year total shareholder return swung to 13.4% from a negative 9% for the prior ...
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