Temasek’s investment portfolio had a net value of S$313 billion as at 31 March 2019. The portfolio includes at least 25 listings on SGX, comprising 15 companies and 10 trusts with a combined market cap of more than S$260 billion. Its Singapore exposure stands at 26% of the portfolio.
The 15 SGX-listed companies in Temasek's portfolio have averaged a 3-year total return of +6.1%, bringing their 5-year and 10-year total returns to -0.2% and +82.6% respectively. The 10 SGX-listed trusts in the portfolio have averaged a 3-year total return of +42.2%, bringing their 5-year and 10-year total returns to +67.4% and +82.7% respectively.
In the last 3 years, the 3 best-performing SGX-listed stocks in Temasek’s portfolio were DBS (+88.5%), ST Engineering (+33.6%) and Keppel Corp (+27.9%). The 3 best-performing SGX-listed trusts were Mapletree Logistics Trust (+84.2%), Mapletree Industrial Trust (+71.9%) and Mapletree Commercial Trust (+70.8%).
Incorporated in 1974, Singapore’s Temasek Holdings is a state-owned investment firm that manages its assets based on commercial principles. As an active investor and shareholder, it aims to deliver sustainable value over the long term.
Temasek’s portfolio is made up of listed and unlisted investments, other assets and liabilities. Its portfolio valueis based on share prices for listed investments, and book values for unlisted investments, as at its 31 March financial year-end. The Temasek Review represents its annual scorecard to stakeholders. Click here to read the 2019 Review released in July.
The principles of the Temasek Charter are:
As an active investor, it shapes its portfolio by increasing, holding or decreasing its investment holdings. These actions are driven by a set of commercial principles to create and maximise risk-adjusted returns over the long term.
As an engaged shareholder, it promotes sound corporate governance in its portfolio companies. This includes the formation of high-calibre, experienced and diverse boards.
Its portfolio companies are guided and managed by their respective boards and management; it does not direct their business decisions or operations.
Similarly, its investment, divestment and other business decisions are directed by its Board and management. Neither the President of Singapore nor its shareholder, the Singapore Government, is involved in its business decisions.
Highlights of Temasek’s Portfolio in FY19
For the financial year ended 31 March 2019, Temasek’s portfolio had a net value of S$313 billion, up S$183 billion over the decade. Its 10-year total shareholder return (TSR) stood at 9%, while the 20-year TSR was at 7%. Its TSR measures the returns delivered to its shareholder and reflects the change in the net portfolio value over a specific time frame. This includes dividends paid to its shareholder and excludes capital injections.
Having anticipated an increasingly challenging environment since last July, the firm moderated its investment pace, investing some S$24 billion and divesting S$28 billion for the year. It received dividend income of S$9 billion from its portfolio.
Temasek’s portfolio expanded with Singapore in its early years, and has since branched out in 2002 to build a second wing of growth with the Asian economies undergoing their transformation. The portfolio has a 40% exposure to Asia ex-Singapore, and 34% exposure to the Rest of the World. Its Singapore exposure – which stands at 26% – has grown by S$41 billion over the last 10 years. For detailed portfolio highlights, click here.
Temasek’s SGX-Listed Investments
Temasek’s portfolio includes at least 25 listings on Singapore Exchange, comprising 15 companies and 10 trusts with a combined market capitalisation of more than S$260 billion.
The 15 companies have averaged a 3-year total return of +6.1%, bringing their 5-year and 10-year total returns to -0.2% and +82.6% respectively. The 10 trusts have averaged a 3-year total return of +42.2%, bringing their 5-year and 10-year total returns to +67.4% and +82.7% respectively.
Best Performers Among Temasek’s SGX-Listed Investments
Over the past 3 years, the 3 best-performing SGX-listed stocks in Temasek’s portfolio were: DBS Group (+88.5%), ST Engineering (+33.6%) and Keppel Corp (+27.9%). The trio have averaged a 3-year total return of 50.0%, bringing their 5-year and 10-year total returns to 24.4% and 109.9% respectively. All 3 stocks are constituents of the benchmark Straits Times Index (STI).
Over the same period, the 3 best-performing SGX-listed trusts in Temasek’s portfolio were: Mapletree Logistics Trust (+84.2%), Mapletree Industrial Trust (+71.9%) and Mapletree Commercial Trust (+70.8%). The trio have averaged a 3-year total return of 75.6%, bringing their 5-year total returns to 119.4%.
Mapletree Commercial Trust was added to the STI effective yesterday, with an approximate 1.5% index weighting. Mapletree Industrial Trust replaced Mapletree Commercial Trust in the STI Reserve List, also effective yesterday, while Mapletree Logistics Trust is already in the Reserve List. The STI Reserve List comprises the five highest ranking non-constituents of the STI by market capitalisation. Stocks on the Reserve List will replace any constituents that become ineligible as a result of corporate actions, before the next review.
The table below details the SGX-listed stocks in Temasek’s portfolio, sorted by market cap.
|DBS GROUP HLDGS||D05||63,866||88.5||70.0||181.4|
|CAPITALAND MALL TRUST||C38U||9,664||43.0||76.4||144.2|
|CAPITALAND COMMERCIAL TRUST||C61U||8,212||61.0||79.9||262.4|
|MAPLETREE COMMERCIAL TRUST||N2IU||6,573||70.8||115.5||NA|
|MAPLETREE LOGISTICS TRUST||M44U||5,860||84.2||99.7||8.9|
|MAPLETREE INDUSTRIAL TRUST||ME8U||4,938||71.9||142.9||NA|
|MAPLETREE NORTH ASIA COMMERCIAL TRUST||RW0U||4,176||53.1||106.7||0.0|
|NETLINK NBN TRUST||CJLU||3,468||NA||NA||NA|
|ASCOTT RESIDENCE TRUST||A68U||2,852||45.3||55.9||182.2|
|HUTCHISON PORT HOLDINGS TRUST||NS8U||2,089||-51.5||-60.6||NA|
Note this is not an exhaustive tally of SGX-listed stocks within Temasek’s portfolio – the state-investment firm also holds small stakes in other companies such as UOB, OCBC Bank and City Developments. Similarly, CapitaLand and Keppel Corp have major investments in other listed entities, while companies such as Singapore Post have named Temasek as a deemed substantial shareholder through Temasek’s interests in Singtel and DBS.