Singapore’s state investor Temasek reported an 11.6% year-on-year increase in its net portfolio value to a record S$434 billion ($340 billion) on Wednesday, while suggesting that risks related to U.S. immigration, tariff and fiscal tightening policies have likely reached their peak, Reuters reported.

The announcement comes as U.S. President Donald Trump initiated a new phase in his trade war on Monday, informing trading partners including Japan, South Korea, and Malaysia that they will face higher tariffs starting August 1.

“We still have to be watchful of the tariff developments over the next few weeks and months,” Lim Ming Pey, Temasek’s joint head of corporate strategy, said during a briefing.

Temasek’s Chief Investment Officer Rohit Sipahimalani expressed confidence that tariffs would not return to levels seen on Trump’s “Liberation Day” on April 2. He also noted that earlier concerns about fiscal tightening slowing U.S. growth had eased following the passage of Trump’s tax-cut and spending bill.

“Generally speaking, the slowdown in growth that we’re seeing right now because of tariff uncertainty, we should see a recovery in growth towards the end of the year, particularly as the Fed cuts rates and more deregulation happens, and there’s more clarity around tariffs,” Sipahimalani said. “The challenge in the U.S. is valuations.”

Despite trade tensions, Lim highlighted “bright spots, such as the U.S.’s world-class capabilities in AI, which will have a transformative impact across all sectors.”

The United States remains Temasek’s largest investment destination. The Americas represented 24% of its portfolio at the end of its financial year on March 31.