Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>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.</li>
</ul>
 

<ul>
<li>The 15 SGX-listed companies in Temasek's portfolio have averaged a 3Y total return of +6.1%, bringing their 5Y and 10Y total returns to -0.2% and +82.6% respectively. The 10 SGX-listed trusts in the portfolio have averaged a 3Y total return of +42.2%, bringing their 5Y and 10Y total returns to +67.4% and +82.7% respectively.</li>
</ul>
 

<ul>
<li>In the last three years, the three best-performing SGX-listed stocks in Temasek’s portfolio were DBS (+88.5%), ST Engineering (+33.6%) and Keppel Corp (+27.9%). The three best-performing SGX-listed trusts were Mapletree Logistics Trust (+84.2%), Mapletree Industrial Trust (+71.9%) and Mapletree Commercial Trust (+70.8%).</li>
</ul>
 

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 <a href="https://www.temasekreview.com.sg/">here</a> to read the 2019 Review released in July.

The principles of the Temasek Charter are:

<ul>
<li>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. 
	 </li>
	<li>As an engaged shareholder, it promotes sound corporate governance in its portfolio companies. This includes the formation of high-calibre, experienced and diverse boards. 
	 </li>
	<li>Its portfolio companies are guided and managed by their respective boards and management; it does not direct their business decisions or operations.  
	 </li>
	<li>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. 
	 </li>
</ul>
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.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-09/Net%20Portfolio%20Value%20Temasek.png" alt="Net Portfolio Value Temasek ">
 </figure>
 <div class="content-caption">Net Portfolio Value Temasek </div>
Source: Temasek Review 2019

 

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 <a href="https://www.temasekreview.com.sg/overview/performance-overview.html">here</a>.

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 three-year total return of +6.1%, bringing their five-year and 10-year total returns to -0.2% and +82.6% respectively. The 10 trusts have averaged a three-year total return of +42.2%, bringing their five-year and 10-year total returns to +67.4% and +82.7% respectively.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-09/Total%20Returns%20of%20SGX%20Listed%20Investments%20in%20Temasek%20Portfolio.png" alt="Total Returns of SGX Listed Investments in Temasek Portfolio ">
 </figure>
 <div class="content-caption">Total Returns of SGX Listed Investments in Temasek Portfolio </div>
Source: Bloomberg (data as of 20 Sept 2019)

 

Best Performers Among Temasek’s SGX-Listed Investments

Over the past three years, the three best-performing SGX-listed stocks in Temasek’s portfolio were: DBS Group Holdings (+88.5%), ST Engineering (+33.6%) and Keppel Corp (+27.9%). The trio have averaged a 3Y total return of 50.0%, bringing their 5Y and 10Y total returns to 24.4% and 109.9% respectively. All three stocks are constituents of the benchmark Straits Times Index (STI).

Over the same period, the three best-performing SGX-listed trusts in Temasek’s portfolio were: Mapletree Logistics Trust (MLT) (+84.2%), Mapletree Industrial Trust (MIT) (+71.9%) and Mapletree Commercial Trust (MCT) (+70.8%). The trio have averaged a 3Y total return of 75.6%, bringing their 5Y total returns to 119.4%.

MCT was added to the STI effective yesterday, with an approximate 1.5% index weighting. MIT replaced MCT in the STI Reserve List, also effective yesterday, while MLT 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.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
			<td>
			Total Return 5Y (%)
			</td>
			<td>
			Total Return 10Y (%)
			</td>
		</tr>
<tr>
<td>
			DBS GROUP HLDGS
			</td>
			<td>
			D05
			</td>
			<td>
			63,866
			</td>
			<td>
			88.5
			</td>
			<td>
			70.0
			</td>
			<td>
			181.4
			</td>
		</tr>
<tr>
<td>
			SINGTEL
			</td>
			<td>
			Z74
			</td>
			<td>
			51,927
			</td>
			<td>
			-5.1
			</td>
			<td>
			6.9
			</td>
			<td>
			69.4
			</td>
		</tr>
<tr>
<td>
			CAPITALAND LTD
			</td>
			<td>
			C31
			</td>
			<td>
			17,682
			</td>
			<td>
			24.5
			</td>
			<td>
			24.5
			</td>
			<td>
			25.9
			</td>
		</tr>
<tr>
<td>
			ST ENGINEERING
			</td>
			<td>
			S63
			</td>
			<td>
			12,225
			</td>
			<td>
			33.6
			</td>
			<td>
			32.1
			</td>
			<td>
			122.3
			</td>
		</tr>
<tr>
<td>
			KEPPEL CORP
			</td>
			<td>
			BN4
			</td>
			<td>
			11,080
			</td>
			<td>
			27.9
			</td>
			<td>
			-28.9
			</td>
			<td>
			26.1
			</td>
		</tr>
<tr>
<td>
			SINGAPORE AIRLINES
			</td>
			<td>
			C6L
			</td>
			<td>
			10,785
			</td>
			<td>
			-3.9
			</td>
			<td>
			8.0
			</td>
			<td>
			-3.0
			</td>
		</tr>
<tr>
<td>
			ASCENDAS REIT
			</td>
			<td>
			A17U
			</td>
			<td>
			9,681
			</td>
			<td>
			51.4
			</td>
			<td>
			89.7
			</td>
			<td>
			192.9
			</td>
		</tr>
<tr>
<td>
			CAPITALAND MALL TRUST
			</td>
			<td>
			C38U
			</td>
			<td>
			9,664
			</td>
			<td>
			43.0
			</td>
			<td>
			76.4
			</td>
			<td>
			144.2
			</td>
		</tr>
<tr>
<td>
			SINGAPORE EXCHANGE
			</td>
			<td>
			S68
			</td>
			<td>
			9,103
			</td>
			<td>
			26.4
			</td>
			<td>
			43.1
			</td>
			<td>
			45.0
			</td>
		</tr>
<tr>
<td>
			CAPITALAND COMMERCIAL TRUST
			</td>
			<td>
			C61U
			</td>
			<td>
			8,212
			</td>
			<td>
			61.0
			</td>
			<td>
			79.9
			</td>
			<td>
			262.4
			</td>
		</tr>
<tr>
<td>
			MAPLETREE COMMERCIAL TRUST
			</td>
			<td>
			N2IU
			</td>
			<td>
			6,573
			</td>
			<td>
			70.8
			</td>
			<td>
			115.5
			</td>
			<td>
			NA
			</td>
		</tr>
<tr>
<td>
			MAPLETREE LOGISTICS TRUST
			</td>
			<td>
			M44U
			</td>
			<td>
			5,860
			</td>
			<td>
			84.2
			</td>
			<td>
			99.7
			</td>
			<td>
			8.9
			</td>
		</tr>
<tr>
<td>
			OLAM INTL
			</td>
			<td>
			O32
			</td>
			<td>
			5,799
			</td>
			<td>
			1.9
			</td>
			<td>
			-9.9
			</td>
			<td>
			349.8
			</td>
		</tr>
<tr>
<td>
			SATS LTD
			</td>
			<td>
			S58
			</td>
			<td>
			5,345
			</td>
			<td>
			6.6
			</td>
			<td>
			91.9
			</td>
			<td>
			266.3
			</td>
		</tr>
<tr>
<td>
			MAPLETREE INDUSTRIAL TRUST
			</td>
			<td>
			ME8U
			</td>
			<td>
			4,938
			</td>
			<td>
			71.9
			</td>
			<td>
			142.9
			</td>
			<td>
			NA
			</td>
		</tr>
<tr>
<td>
			KEPPEL REIT
			</td>
			<td>
			K71U
			</td>
			<td>
			4,246
			</td>
			<td>
			34.7
			</td>
			<td>
			35.0
			</td>
			<td>
			119.0
			</td>
		</tr>
<tr>
<td>
			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			</td>
			<td>
			RW0U
			</td>
			<td>
			4,176
			</td>
			<td>
			53.1
			</td>
			<td>
			106.7
			</td>
			<td>
			0.0
			</td>
		</tr>
<tr>
<td>
			SEMBCORP INDUSTRIES
			</td>
			<td>
			U96
			</td>
			<td>
			3,843
			</td>
			<td>
			-10.9
			</td>
			<td>
			-52.3
			</td>
			<td>
			-12.3
			</td>
		</tr>
<tr>
<td>
			NETLINK NBN TRUST
			</td>
			<td>
			CJLU
			</td>
			<td>
			3,468
			</td>
			<td>
			NA
			</td>
			<td>
			NA
			</td>
			<td>
			NA
			</td>
		</tr>
<tr>
<td>
			ASCOTT RESIDENCE TRUST
			</td>
			<td>
			A68U
			</td>
			<td>
			2,852
			</td>
			<td>
			45.3
			</td>
			<td>
			55.9
			</td>
			<td>
			182.2
			</td>
		</tr>
<tr>
<td>
			SIA ENGINEERING
			</td>
			<td>
			S59
			</td>
			<td>
			2,812
			</td>
			<td>
			-23.3
			</td>
			<td>
			-31.8
			</td>
			<td>
			56.3
			</td>
		</tr>
<tr>
<td>
			SEMBCORP MARINE
			</td>
			<td>
			S51
			</td>
			<td>
			2,633
			</td>
			<td>
			1.7
			</td>
			<td>
			-64.0
			</td>
			<td>
			-47.1
			</td>
		</tr>
<tr>
<td>
			STARHUB LTD
			</td>
			<td>
			CC3
			</td>
			<td>
			2,251
			</td>
			<td>
			-51.9
			</td>
			<td>
			-56.0
			</td>
			<td>
			16.6
			</td>
		</tr>
<tr>
<td>
			HUTCHISON PORT HOLDINGS TRUST
			</td>
			<td>
			NS8U
			</td>
			<td>
			2,089
			</td>
			<td>
			-51.5
			</td>
			<td>
			-60.6
			</td>
			<td>
			NA
			</td>
		</tr>
<tr>
<td>
			SINGAPORE POST
			</td>
			<td>
			S08
			</td>
			<td>
			2,070
			</td>
			<td>
			-30.1
			</td>
			<td>
			-36.2
			</td>
			<td>
			59.5
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			22.0
			</td>
			<td>
			29.5
			</td>
			<td>
			82.6
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 20 Sept 2019)

 

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.
</body></html>




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 3Y total return of +6.1%, bringing their 5Y and 10Y total returns to -0.2% and +82.6% respectively. The 10 SGX-listed trusts in the portfolio have averaged a 3Y total return of +42.2%, bringing their 5Y and 10Y total returns to +67.4% and +82.7% respectively.

 


In the last three years, the three best-performing SGX-listed stocks in Temasek’s portfolio were DBS (+88.5%), ST Engineering (+33.6%) and Keppel Corp (+27.9%). The three 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.

      
    
    Net Portfolio Value Temasek 
Source: Temasek Review 2019

 

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 three-year total return of +6.1%, bringing their five-year and 10-year total returns to -0.2% and +82.6% respectively. The 10 trusts have averaged a three-year total return of +42.2%, bringing their five-year and 10-year total returns to +67.4% and +82.7% respectively.

      
    
    Total Returns of SGX Listed Investments in Temasek Portfolio 
Source: Bloomberg (data as of 20 Sept 2019)

 

Best Performers Among Temasek’s SGX-Listed Investments

Over the past three years, the three best-performing SGX-listed stocks in Temasek’s portfolio were: DBS Group Holdings (+88.5%), ST Engineering (+33.6%) and Keppel Corp (+27.9%). The trio have averaged a 3Y total return of 50.0%, bringing their 5Y and 10Y total returns to 24.4% and 109.9% respectively. All three stocks are constituents of the benchmark Straits Times Index (STI).

Over the same period, the three best-performing SGX-listed trusts in Temasek’s portfolio were: Mapletree Logistics Trust (MLT) (+84.2%), Mapletree Industrial Trust (MIT) (+71.9%) and Mapletree Commercial Trust (MCT) (+70.8%). The trio have averaged a 3Y total return of 75.6%, bringing their 5Y total returns to 119.4%.

MCT was added to the STI effective yesterday, with an approximate 1.5% index weighting. MIT replaced MCT in the STI Reserve List, also effective yesterday, while MLT 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.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return 3Y (%)
			
			
			Total Return 5Y (%)
			
			
			Total Return 10Y (%)
			
		


			DBS GROUP HLDGS
			
			
			D05
			
			
			63,866
			
			
			88.5
			
			
			70.0
			
			
			181.4
			
		


			SINGTEL
			
			
			Z74
			
			
			51,927
			
			
			-5.1
			
			
			6.9
			
			
			69.4
			
		


			CAPITALAND LTD
			
			
			C31
			
			
			17,682
			
			
			24.5
			
			
			24.5
			
			
			25.9
			
		


			ST ENGINEERING
			
			
			S63
			
			
			12,225
			
			
			33.6
			
			
			32.1
			
			
			122.3
			
		


			KEPPEL CORP
			
			
			BN4
			
			
			11,080
			
			
			27.9
			
			
			-28.9
			
			
			26.1
			
		


			SINGAPORE AIRLINES
			
			
			C6L
			
			
			10,785
			
			
			-3.9
			
			
			8.0
			
			
			-3.0
			
		


			ASCENDAS REIT
			
			
			A17U
			
			
			9,681
			
			
			51.4
			
			
			89.7
			
			
			192.9
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			9,664
			
			
			43.0
			
			
			76.4
			
			
			144.2
			
		


			SINGAPORE EXCHANGE
			
			
			S68
			
			
			9,103
			
			
			26.4
			
			
			43.1
			
			
			45.0
			
		


			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
			
		


			OLAM INTL
			
			
			O32
			
			
			5,799
			
			
			1.9
			
			
			-9.9
			
			
			349.8
			
		


			SATS LTD
			
			
			S58
			
			
			5,345
			
			
			6.6
			
			
			91.9
			
			
			266.3
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			4,938
			
			
			71.9
			
			
			142.9
			
			
			NA
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			4,246
			
			
			34.7
			
			
			35.0
			
			
			119.0
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			
			
			RW0U
			
			
			4,176
			
			
			53.1
			
			
			106.7
			
			
			0.0
			
		


			SEMBCORP INDUSTRIES
			
			
			U96
			
			
			3,843
			
			
			-10.9
			
			
			-52.3
			
			
			-12.3
			
		


			NETLINK NBN TRUST
			
			
			CJLU
			
			
			3,468
			
			
			NA
			
			
			NA
			
			
			NA
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2,852
			
			
			45.3
			
			
			55.9
			
			
			182.2
			
		


			SIA ENGINEERING
			
			
			S59
			
			
			2,812
			
			
			-23.3
			
			
			-31.8
			
			
			56.3
			
		


			SEMBCORP MARINE
			
			
			S51
			
			
			2,633
			
			
			1.7
			
			
			-64.0
			
			
			-47.1
			
		


			STARHUB LTD
			
			
			CC3
			
			
			2,251
			
			
			-51.9
			
			
			-56.0
			
			
			16.6
			
		


			HUTCHISON PORT HOLDINGS TRUST
			
			
			NS8U
			
			
			2,089
			
			
			-51.5
			
			
			-60.6
			
			
			NA
			
		


			SINGAPORE POST
			
			
			S08
			
			
			2,070
			
			
			-30.1
			
			
			-36.2
			
			
			59.5
			
		


			Average
			
			
			 
			
			
			 
			
			
			22.0
			
			
			29.5
			
			
			82.6
			
		

Source: Bloomberg &amp; StockFacts (data as of 20 Sept 2019)

 

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.



Highlights of Temasek’s SGX-Listed Investments      