Alibaba still key part of portfolio: Temasek

S'pore investment firm retains sizeable stake after reducing its holdings in third quarter

Temasek Holdings which pared its stake in Alibaba Group Holding in the third quarter as the stock rallied, said China's biggest online retailer remains an essential part of its portfolio.

The investment firm sold 14.5 million American depositary receipts (ADR), leaving it with 39.6 million at the end of September, valued at US$4.2 billion (S$5.7 billion), according to a filing with the United States Securities and Exchange Commission filed on Monday.

Temasek added 6.5 million ADRs in the company in the June quarter, according to an earlier filing.

Temasek spokesman Stephen Forshaw, in an e-mail statement, said: "These changes reflect the reporting of normal portfolio rebalancing we undertake from time to time, and are mainly related to more liquid stocks, holdings of which may vary with market movements.

"We remain significantly invested in Alibaba as an important holding in our portfolio."

Temasek was one of the early investors in Alibaba, the online shopping giant run by Mr Jack Ma, and it remains the eighth-largest holding in the fund's portfolio, according to data compiled by Bloomberg. Alibaba shares gained 33 per cent in the three months up to September.

Temasek also emerged as a shareholder in Dell Technologies, owning 1.6 million shares valued at US$75 million as of Sept 30, the filing shows.

The securities are so-called tracking stocks for software maker VMware, the prize holding of EMC, which Dell agreed to buy last year.

Temasek helped finance the acquisition. Temasek also bought 1.3 million shares in biopharmaceutical firm AC Immune, and 350,159 shares in Internet travel agency Ctrip.com International, according to the filing. It bought 408,543 ADRs in Royal Dutch Shell.

Temasek, which in July reported the first decline in its portfolio in seven years after holdings were battered by last year's market rout, is reshaping its holdings and bracing itself for lower market returns.

The value of assets fell 9 per cent to $242 billion in the fiscal year ended March 31, according to the firm's annual review.

Money managers who oversee more than US$100 million in equities must file a Form 13F with the SEC within 45 days of the end of each quarter to show their US-listed stocks, options and convertible bonds.

The filings do not disclose non-US securities or how much cash the firms hold.

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A version of this article appeared in the print edition of The Straits Times on November 16, 2016, with the headline 'Alibaba still key part of portfolio: Temasek'. Print Edition | Subscribe