How Much Straits Times Index Stocks does Temasek Own?

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We know that many of our blue-chip stocks are partially owned by the Singapore Government sovereign wealth fund, Temasek Holdings. In fact, there are plenty of investors who find comfort in investing in Temasek-backed companies.

I was curious to find how many of 30 Straits Times Index (STI) stocks had Temasek as a major shareholder.

How much of these blue chip stocks did they own and how did they perform?

The purpose of this article is to highlight some of my findings which you could find useful or interesting.

Temasek owns 12 out of 30 STI stocks

I downloaded every STI stock’s annual report to find out the largest shareholders of the companies.

There are 30 stocks representing the STI and out of which 12 are owned by Temasek. They are

  1. SIA – 55.71%
  2. SingTel – 52.35%
  3. ST Engineering – 50.97%
  4. Sembcorp Ind – 49.4%
  5. SATS – 40.01%
  6. CapitaLand – 39.99%
  7. CapitaComm – 31.96%
  8. CapitaMall – 29.57%
  9. DBS – 29.27%
  10. Ascendas REIT – 20.7%
  11. Keppel – 20.48%
  12. Hutchison Port – 11%

Temasek’s top 3 holdings in STI are SingTel, DBS and SIA

The top 3 holdings in STI are

  1. SingTel – S$26 billion
  2. DBS – S$18 billion
  3. SIA – S$6 billion

The bottom 3 holdings in STI are 

  1. Hutchison Port – S$0.4 billion
  2. Ascendas REIT – S$2 billion
  3. SATS – S$2 billion

Here’s a pictorial view of the STI stocks by value in Temasek’s portfolio. 

Temasek owns 15% of STI

I was expecting Temasek to have a bigger proportion of the ownership among the STI but 15% isn’t really that excessive.

In comparison, the other key shareholders had a bigger share of 25% of STI.

This shows that there is a healthy dose of private enterprises driving the economy and the business environment is friendly.

Below is the list of STI stocks and the corresponding shareholders and ownership levels.

CompanyTickerTemasek / Largest Shareholder% OwnershipOwnership Value (in millions)Market Cap (in milions, as of 17 Dec 18)
Singapore AirlinesC6LTemasek55.71%S$6,231.52$11,185.64
SingTelZ74Temasek52.35%S$26,149.74S$49,951.75
ST EngineeringS63Temasek50.97%S$5,597.26S$10,981.47
Sembcorp IndS63Temasek49.48%S$2,313.58S$4,675.78
SATSS58Temasek40.01%S$2,065.05S$5,161.33
CapitaLandC31Temasek39.99%S5,206.84S$13,155.39
CapitaLand Comm TrC61UTemasek31.96%S$2,142.13S$6,702.53
CapitaLand Mall TrC38UTemasek29.57%S$2,507.50S$8,479.88
DBSD05Temasek29.27%S$17,879.78S$61,085.69
Ascendas REITA17UTemasek20.7%S$1,685.83S$8,144.11
KeppelBN4Temasek20.48%S$2,264.25S$11,055.93
Hutchison Port TrNS8UTemasek11%S$368.98S$3,354.37
Jardine StrategicJ37Jardine Matheson83.96%S$24,603.05S$29,303.30
Jardine MathesonJ36Jardine Strategic57.66%$17,309.99$30,020.80
Dairy FarmD01Jardine Strategic77.6%$13,375.27$17,236.17
Hongkong LandH78Jardine Strategic50.01%S$10,950.29S$21,896.20
Jardine C & CC07Jardine Strategic75%S$10,609.13S$14,145.50
Thai BevY92Charoen Sirivadhanabhakdi65.89%S$9,762.05S$14,815.68
UOBU11Wee Cho Yaw18.17%S$7,543.57S$41,516.60
Genting SingaporeG13Tan Sri Lim Kok Thay52.75%S$6,353.73S$12,044.99
OCBCO39Selat (Pte) Ltd11.51%S$5,548.05S$48,202.03
WilmarF34Archer Daniels Midland24.89%S$4,991.86S$20,055.70
CityDevC09Kwek Holdings48.42%S$3,640.61S$7,518.20
UOLU14Wee Cho Yaw35.84%S$1,860.40S$5,190.85
Golden AgriE5HWidjaja Family50.35%S$1,667.09S$3,311
YangzijiangBS6Ren Yuanlin25.35%S$1,210.31S$4,774.40
VentureV03Wong Ngit Liong7.08%S$296.33S$4,185.40
ComfortDelGroC52Blackrock6%S$278.04S$4,633.96
SGXS68PublicS$7,748.12
SPHT39Public$3,920.43

What if you just invest in Temasek-backed STI stocks?

I used stocks.cafe to do a backtesting on a Temasek-backed portfolio. Here are the rules I used

  • Buy all 12 stocks/counters at 100 shares each (min 1 lot rule)
  • Buy on 23 Dec 2013 and held till 17 Dec 2018 (approx 5 years)
  • No commissions

Below is the portfolio returns vis-a-vis the STI itself. The portfolio outperformed slightly, doing 21% over five years (average 4% per year) compared to STI return of 14%.

Digging deeper into the portfolio components we can draw further insights

  • 9 out of 12 made money
  • SATS, DBS, Ascendas REIT, CapitaCom, and CapitaMall returned more than 50% (inclusive of dividends) in the past 5 years
  • Portfolio did well mainly because of the overweight in DBS (because buying 100 shares of DBS is a large amount) which returned 66%. Underweighting DBS would yield very different results
  • The portfolio is yielding a healthy 6.45% per year with stocks in diverse industries

Here’s a screenshot of the portfolio details:

Would you invest in Temasek-backed STI stocks? Share with us!

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