SINGAPORE, July 9 (Reuters) - Singapore's Temasek Holdings reported on Tuesday the smallest rise in its portfolio value in three years as declines in key bank stock holdings weighed, and the state investor said it had tempered its pace of investments.
The 1.6% gain in the portfolio for the year to March 31, 2019 came after a 12% increase a year ago and took Temasek's net portfolio value to a record S$313 billion ($230 billion).
Like larger sovereign wealth fund GIC, Temasek cited the U.S.-China trade war and a low interest rate environment as factors that would lower return expectations for the longer term.
Reflecting its cautious stance, Temasek's divestments of S$28 billion outpaced its investments of S$24 billion in the past year. ($1 = 1.3600 Singapore dollars) (Reporting by Anshuman Daga and Joe Brock; Editing by Muralikumar Anantharaman)