The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Temasek results show banks back in vogue

Financial services give good exposure to the region.

Here’s an interesting footnote to Temasek’s latest full-year review: banks are back in favour.

The Singapore sovereign wealth fund reported a return to shareholders of 12.19% for the year to March 31, with a characteristically lively amount of churn – S$29 billion ($21.2 billion) of investments and S$16 billion of divestments during the year.

And while investments in tech disruptors like Go-Jek, Tencent and Ant Financial tend to catch the headlines, it is worth noting that financial services now accounts for 26% of the portfolio, the biggest single sector constituent, up from 25% a year ago and 23% in 2016.


Overtake

During that two-year spell, financial services has overtaken technology, media and telecom. This is despite the fact that Temasek trimmed its holding in ICBC during the period and is in the process of selling its stake in Indonesia’s Bank Danamon to MUFG.

What does this tell us? Firstly, this is a reflection of what Temasek has always looked for. Its four key investment themes are transforming economies, growing middle-income populations, deepening comparative advantages and emerging champions; banks chime with all these themes. Holding 29% of DBS, 16% of Standard Chartered and 4% of China Construction Bank is very helpful when you want to reach growing middle-income populations.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree