The FTSE Value-Stocks ASEAN Index promises to curate a group of high quality value stocks from the ASEAN region.
A recent report from local bourse operator SGX revealed that there are 10 Singapore-listed companies made the cut for the index. As a quick background, the FTSE Value-Stocks ASEAN Index is made up of approximately 50 value stocks from the ASEAN region, namely Indonesia, Malaysia, the Philippines, Thailand, and Singapore.
The index provider uses a proprietary value screen that includes valuation, quality and contrarian factors. Over the past 10 years the FTSE Value-Stocks ASEAN Index has returned an annualised yield of 6.6%. In contrast, the Singapore stocks within the index which are included have returned a staggering 155% total return or 9.9% annualised. Let take a quick look at the top five Singapore performers from the index (figures as of 13 Aug 2018, unless otherwise stated).
1. Mapletree Industrial Trust (SGX: ME8U) was the best performer on the list with a total return of almost 260% over the past ten years. The real estate investment trust (REIT) owns and manages industrial properties in Singapore, and sports a market capitalisation of S$3.7 billion. Units of the REIT are currently changing hands at a price-to-book (PB) value of 1.3.
2. Another REIT, Mapletree Logistics Trust (SGX: M44U), is next best performer on the list, posting an amazing 255% in total returns over the past decade. As its name suggests, Mapletree Logistics Trust owns and manages logistics-related properties in seven countries. The REIT has a market capitalisation of around S$4 billion, and is currently tradeing at around its book value.
3. Venture Corporation Ltd (SGX: V03) comes in third on the list. Venture is a leading global provider of technology solutions, product, and services. According to the company, it is a trusted partner of several Fortune 500 corporations. Currently, Venture has a market capitalisation of around S$5 billion, and a price to earnings (PE) ratio of 12.3. Over the last ten years, it has registered a total return of over 220%.
4. Jardine Cycle & Carriage Ltd (SGX: C07) is up next, coming in at the fourth position. Jardine C&C is a conglomerate with varied business interests, including automotive, cement, dairy, and electrical engineering. Over the past ten years, the company has rewarded patient investors with a total return of approaching 180%. Currently, Jardine C&C trades at a PE of 17.3, and sports a market capitalisation of about S$13 billion.
5. DBS Group Holdings Ltd (SGX: D05), the largest bank in ASEAN, rounds up the top five Singapore companies in the FTSE Value Stocks ASEAN index. DBS group comes in with a 10-year total return of just under 140%. The bank’s market capitalisation is currently close to S$65 billion, and shares trades at a PB of 1.4.
The top five performing stocks presented above, serves as evidence that companies from a wide range of industries, and of various sizes can all perform well over long periods of time. Investors should focus on choosing the best companies in their respective fields, and exercise patience for the chance to earn outsized returns.
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The Motley Fool Singapore contributor Esjay contributed to this article.
The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.The Motley Fool Singapore has recommended shares of Singapore Exchange, Mapletree Industrial Trust, and DBS Group. Motley Fool Singapore writer Chin Hui Leong owns shares in Mapletree Logistics Trust and Singapore Exchange. Motley Fool Singapore contributor Esjay does not own any of the shares mentioned.