Temasek Holdings on Thursday reported that the value of its investment portfolio rose to a new record in the last fiscal year as shareholder returns also climbed. Observers however warned of the potential downside risks ahead as a result of Temasek’s sizeable exposure to the banking sector in the region. SMU Vice President (Business Development and External Relations) Associate Professor Annie Koh said that the Temasek Holdings portfolio is not quite a diversified private equity portfolio and so there will be some issues to come up, such as the next big period of growth and whether it will specifically be just in Asia. She added that “US is definitely showing signs of recovery and Japan is not there right now but could be another market to look at.”