Singapore state investment company Temasek Holdings’ net portfolio value soared to a record high of 434 billion Singapore dollars ($324 billion) for its financial year ended March.

That’s up SG$45 billion from a year ago, a more than 11% gain year on year.

The firm attributed the increase largely to the strong performance of its listed Singapore-based companies, as well direct investments in China, the United States and India.

Temasek is a major shareholder in Singapore companies such as DBS, CapitaLand and Singapore Airlines.

On a mark to market basis, Temasek’s net portfolio value would be SG$469 billion, with a SG$35 billion value contribution from its unlisted portfolio.

The firm said that it has been “actively rebalancing” its portfolio “amidst a changing macroeconomic environment,” making SG$52 billion of investments and divestments of SG$42 billion over its financial year.

That is the largest investment amount since 2022, and the largest divestment amount in more than two decades.

In an interview with CNBC’s Martin Soong Wednesday, Rohit Sipahimalani, CIO of Temasek International, said “part of it was just us trying to reshape our portfolio into the direction that we wanted to be over the next few years, to be more resilient in the environment we’re in.”

Temasek said geopolitical tensions remain a key risk, which will dampen global growth, and added that “despite heightened trade and geopolitical uncertainties, we continue to hold a constructive outlook on investment opportunities.”

Notably, the firm said that the U.S. remains a key investment destination, adding that it is the largest destination for its capital, thanks to its strong business fundamentals, deep capital markets and a culture of accelerative innovation.

“We do see bright spots such as the U.S.’ world-class capabilities in AI, which will have transformative impact across all sectors.”

Temasek is also of the view that the risks around immigration, tariffs, and fiscal tightening have likely peaked, but said it is still “watchful” when it comes to future tariff developments.

While the firm did not give exact figures for its portfolio allocation into the United States, 24% of its underlying country exposure is to the Americas, up from 22% the year before.

Temasek also slightly increased its exposure to India to 8% of its portfolio, up from 7%.

In contrast, exposure to China and the Asia-Pacific region dipped slightly, by 1% each, as did its exposure to Europe, the Middle East and Africa.

The firm said China’s growth target “could be challenging” to achieve, given global tensions and trade uncertainties.

Temasek also said that “softer consumption has kept inflation subdued.” China’s producer prices have been in deflation territory, with recent producer prices plunging 3.6% in June from a year earlier and marking its largest decline in nearly two years.

The country’s consumer price index edged 0.1% higher in June from a year ago, according to data from the National Bureau of Statistics Wednesday.

However, the state investment firm sees “positive signs” such as stronger government spending and support for consumption, and also expressed belief in the longer-term prospects of China.

“We see opportunities in the green economy and life sciences innovations, and also in leading domestic brands which continue to scale and grow in a resilient manner,” Temasek said.

Clarification: This article has been updated to better reflect Temasek’s view on China’s inflation, and the country’s growth outlook.