SINGAPORE investment firm Temasek Holdings saw its portfolio hit a new record last year, lifted by strong stock markets in Asia.

Its portfolio rose by 8.6 per cent over last year to hit a fresh peak of $215 billion as at March 31 this year, Temasek said on Thursday.

Asian equity markets rose strongly from the middle of last year to the first three months of this year, but have since fallen due to concerns over rising interest rates and the tightening of central banks' loose monetary policies.

Temasek will continue to stay focused in Asia and the emerging markets but will look at opportunities in the developed markets, said chairman S. Dhanabalan.

"The severe disruptive risks from the global financial crisis subsided, but structural risks have not been completely resolved," he said at the release of Temasek's latest annual report on Thursday.

"While we have increased our exposure in North America and Europe, Asia continued to attract the largest proportion of our investments. We remain anchored in Asia and are optimistic about its long-term growth," Mr Dhanabalan added.

Temasek's portfolio was 71 per cent Asia-focused as at March 31, with 4 per cent of assets in emerging markets and another 25 per cent in developed markets.

The investment firm's total shareholder return for the year was 8.86 per cent in Singapore dollar terms.