How Much Straits Times Index Stocks does Temasek Own?

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.

Company	Ticker	Temasek / Largest Shareholder	% Ownership	Ownership Value (in millions)	Market Cap (in milions, as of 17 Dec 18)
Singapore Airlines	C6L	Temasek	55.71%	S$6,231.52	$11,185.64
SingTel	Z74	Temasek	52.35%	S$26,149.74	S$49,951.75
ST Engineering	S63	Temasek	50.97%	S$5,597.26	S$10,981.47
Sembcorp Ind	S63	Temasek	49.48%	S$2,313.58	S$4,675.78
SATS	S58	Temasek	40.01%	S$2,065.05	S$5,161.33
CapitaLand	C31	Temasek	39.99%	S5,206.84	S$13,155.39
CapitaLand Comm Tr	C61U	Temasek	31.96%	S$2,142.13	S$6,702.53
CapitaLand Mall Tr	C38U	Temasek	29.57%	S$2,507.50	S$8,479.88
DBS	D05	Temasek	29.27%	S$17,879.78	S$61,085.69
Ascendas REIT	A17U	Temasek	20.7%	S$1,685.83	S$8,144.11
Keppel	BN4	Temasek	20.48%	S$2,264.25	S$11,055.93
Hutchison Port Tr	NS8U	Temasek	11%	S$368.98	S$3,354.37
Jardine Strategic	J37	Jardine Matheson	83.96%	S$24,603.05	S$29,303.30
Jardine Matheson	J36	Jardine Strategic	57.66%	$17,309.99	$30,020.80
Dairy Farm	D01	Jardine Strategic	77.6%	$13,375.27	$17,236.17
Hongkong Land	H78	Jardine Strategic	50.01%	S$10,950.29	S$21,896.20
Jardine C & C	C07	Jardine Strategic	75%	S$10,609.13	S$14,145.50
Thai Bev	Y92	Charoen Sirivadhanabhakdi	65.89%	S$9,762.05	S$14,815.68
UOB	U11	Wee Cho Yaw	18.17%	S$7,543.57	S$41,516.60
Genting Singapore	G13	Tan Sri Lim Kok Thay	52.75%	S$6,353.73	S$12,044.99
OCBC	O39	Selat (Pte) Ltd	11.51%	S$5,548.05	S$48,202.03
Wilmar	F34	Archer Daniels Midland	24.89%	S$4,991.86	S$20,055.70
CityDev	C09	Kwek Holdings	48.42%	S$3,640.61	S$7,518.20
UOL	U14	Wee Cho Yaw	35.84%	S$1,860.40	S$5,190.85
Golden Agri	E5H	Widjaja Family	50.35%	S$1,667.09	S$3,311
Yangzijiang	BS6	Ren Yuanlin	25.35%	S$1,210.31	S$4,774.40
Venture	V03	Wong Ngit Liong	7.08%	S$296.33	S$4,185.40
ComfortDelGro	C52	Blackrock	6%	S$278.04	S$4,633.96
SGX	S68	Public	–	–	S$7,748.12
SPH	T39	Public	–	–	$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!