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Temasek’s 3 Largest Positions

Temasek Holdings, a commercial investment company that’s wholly-owned by the government, released its financial results for the year ended 31 March 2019. The investment company has managed a respectable 15% annualised return since its inception in 1974.

The company has a long-term investment mindset and its portfolio churn rate is also relatively low. In its latest review, the company also mentioned its top three holdings as of 2019. The three positions make up 19% of its entire portfolio. 

With that said, here’s a brief summary of Temasek’s largest positions.

Singapore Telecommunications Limited  (SGX: Z74)

Singapore Telecommunications Limited, or Singtel, takes up 8% of Temasek’s entire portfolio, which works out to around S$25 billion. The telco company is the largest mobile network operator in Singapore. Besides Singapore, it also has major operations in Australia and other regions in Southeast Asia.

In addition to telecommunications, Singtel also has cloud, cybersecurity, consumer content, and even data analytics and digital marketing businesses. Singtel shares have seen a rebound in 2019, rising nearly 22.5% year-to-date. At the time of writing, its shares had a price-to-earnings ratio of 18.6 and a dividend yield of 4.9%.

DBS Group Holdings Ltd  (SGX: D05)

DBS is the biggest company by market capitalisation listed in Singapore. The bank operates in 18 markets in Southeast Asia and has been growing its book value per share from S$9.79 in 2006 to S$18.75 as of 31 March 2019. That translates to an annualised growth of 5.5% per annum.

The fact that DBS has been a consistent dividend payer and the period included the great financial crisis of 2008 makes this achievement all the more impressive.

DBS Group Holdings makes up 6% of Temasek’s portfolio, which works out to around S$18.8 billion. Year-to-date DBS shares have risen by 9.7%. At current prices, it sports a price-to-earnings multiple of 12 and an annualised dividend yield of 4.6%.

Mapletree Investments Pte Ltd

The real estate company is the only non-listed company on this list. Mapletree Investments Pte Ltd comprises 5% of Temasek’s entire portfolio, which works out to around S$15.6 billion.

As of 31 March 2019, Mapletree owns and manages S$46.3 billion worth of properties. It also manages four Singapore-listed real estate investment trusts (REITs) and six private real estate funds. As of 31 March 2019, Mapletree Pte Ltd had a four-year average return on invested equity of 11.1%.

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The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. The Motley Fool Singapore recommends shares of DBS Group Holdings Ltd. Motley Fool Singapore contributor Jeremy Chia owns shares in DBS Group Holdings Ltd.