SGX Market Updates

Long Term Returns of Temasek’s Major SGX-listed Investments


PUBLISHED ON |

27 February 2018

  • Temasek is a 100% Singapore Government-owned Investment Company, established in 1974 with the purpose of separating Singapore Government’s policy making role from the management of its commercial assets.

  • Temasek includes SGX-listed stocks DBS Group Holdings, Singtel, Keppel Corp, Sembcorp Industries, ST Engineering, Singapore Airlines, CapitaLand, Olam International and SATS as major portfolio investments.

  • Of the nine stocks, six have been listed for the past 20 years, averaging annualised total returns of 8.1%. Three stocks, Sembcorp Industries, SATS and Olam International listed within the 20 years, averaging 10.8% annualised total returns from respective debuts.




Temasek is one of three key financial institutions in Singapore that are linked to the Singapore Government. The other two institutions are the Government of Singapore Investment Corporation (“GIC”), which manages the Government reserves; and the Monetary Authority of Singapore (MAS), Singapore’s Central Bank (click here for more).

Temasek was incorporated under the Singapore Companies Act in 1974 to own and commercially manage investments and assets previously held by the Singapore Government. As noted on the Government-owned Investment Company’s website, this allowed the Ministry of Finance to focus on its core role of policymaking and regulations, while Temasek would own and manage these investments on a commercial basis.

Temasek’s initial portfolio comprised of shares in companies, start-ups and joint ventures previously held by the Singapore Government - these included a bird park, a hotel, a shoe maker, a detergent producer, naval yards converted into a ship repair business, a start-up airline, and an iron and steel mill. 



Major Investments

Many of the aforementioned businesses have evolved and expanded their capitalisation to become regional leaders for their respective Sectors. Amongst the businesses that Temasek currently list as its major investments are SGX-listed stocks DBS Group Holdings (“DBS”), Singapore Telecommunications (“Singtel”), Keppel Corp, Sembcorp Industries, ST Engineering, Singapore Airlines, CapitaLand, Olam International and SATS as major portfolio investments.

Of these 9 stocks, 6 have been listed for the past 20 years and averaged annualised total returns of 8.9%. Total returns assume dividends are reinvested in the stock.

The remaining 3 stocks have listed over the past 20 years and averaged annualised total returns of 10.8%. Sembcorp Industries listed in October 1998, SATS listed in May 2000 and Olam International listed in February 2005. From their debuts, Sembcorp Industries has generated an annualised total return of 8.9%, SATS has generated an annualised total return of 10.3% and Olam International has generated an annualised total return of 13.1%.  Note that Sembcorp Marine, a subsidiary of Sembcorp Industries, has been listed for the past 20 years and  generated an annualised total return of 12.3% for the duration.

The 20 year annualised total returns of the six stocks that have been listed for the 20 year duration are tabled below.



20 Year Annualised Total Returns of SGX-listed Temasek Major Investments

Source: SGX My Gateway Bloomberg (Data as of 26 February 2018)



Please note the above stocks are not an exclusive tally of SGX-listed stocks within Temasek’s portfolio. Temasek also includes Real Estate Investment Trust sponsors Mapletree Investments Pte Ltd and Ascendas-Singbridge Pte Ltd within their group of major investments. Subsidiaries of Temasek also maintain shares in SGX-listed stocks and similarly DBS, Singtel, CapitaLand, Keppel Corp, Sembcorp Industries have major investments in other listed entities.

As such, the table below details 25 of the largest capitalised stocks that have Temasek direct or deemed shareholdings or unitholdings. Click on the stock name to see more details of the stock in SGX StockFacts including its five biggest share/unit holders.

Top 25 Largest Capitalised SGX-Listed Stocks with Temasek shareholdings or unitholdings.
Name SGX
Code
Market
Cap
S$m
Last
Price *
Last
Return
2017
%
Total
Return
YTD
%
Dividend
Yield %
DBS Group Hldgs D05 75,967 29.630 47.7 19.2 3.1
Singtel Z74 55,681 3.410 3.2 -4.5 5.1
CapitaLand C31 15,392 3.630 20.1 2.8 3.3
Keppel Corp BN4 14,527 8.020 30.9 9.1 2.7
Singapore Airlines C6L 13,327 11.270 12.5 5.6 1.9
ST Engineering S63 10,718 3.440 5.0 5.5 4.4
Singapore Exchange S68 8,146 7.610 7.9 2.9 3.7
Ascendas REIT A17U 7,537 2.610 27.4 -4.0 6.9
CapitaLand Mall Trust C38U 7,093 2.000 19.5 -4.8 5.6
Olam International O32 7,231 2.280 6.5 12.3 1.5
CapitaLand Commercial Trust C61U 6,314 1.750 42.1 -7.3 5.0
Sembcorp Industries U96 5,720 3.200 8.8 5.6 1.6
SATS S58 5,814 5.200 10.9 0.0 3.3
Sembcorp Marine S51 4,552 2.180 34.9 18.5 0.9
Mapletree Commercial Trust N2IU 4,579 1.590 23.0 -0.5 5.7
StarHub CC3 4,341 2.510 7.9 -11.9 6.4
Keppel REIT K71U 4,064 1.200 30.1 -3.7 4.8
Hutchison Port Hldgs Trust* NS8U 4,186 0.365 -4.5 -9.7 7.3
Mapletree Logistics Trust M44U 3,731 1.220 38.7 -6.1 6.2
SIA Engineering Co S59 3,668 3.280 -2.6 4.8 4.0
Mapletree Industrial Trust ME8U 3,695 1.960 32.2 -2.6 6.0
Mapletree GCC RW0U 3,392 1.200 38.3 -2.4 6.2
Singapore Post S08 3,170 1.400 -14.1 13.3 1.4
NetLink NBN Trust CJLU 3,215 0.825 N/A -1.2 N/A
Ascott Residence Trust A68U 2,524 1.170 20.2 -1.2 6.1
Average 18.6 1.6 4.3

Source: SGX My Gateway and Bloomberg (Data as of 26 February 2018).
* Note Hutchison Port Hldgs Trust price in USD, remaining values in SGD terms.




Did you Know ?

Heliconia Capital Management is a wholly owned subsidiary of Temasek Holdings and an investment firm that focuses on growth-oriented Singapore companies. The next Market Update will detail the recent SGX-listings which attracted Heliconia Capital Management’s participation. 







This article is provided by SGX My Gateway.



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