We strive to analyze funds with as long a comparable history as possible and only within their peer group. For a look at our methodology, please go to
here.
Please note that while we hope that these recommendations would be useful for investors, they are also advised to look at the fund's prospectus and do their own further research before making their investment decisions.
We advise investors to have a diversified portfolio that is spread over the whole world. The recommended funds should not be seen as being recommended in isolation. These funds are what we would recommend amongst their peer groups if you would like to invest in a fund from a particular sector or region. So, if you are interested in funds from one region like Japan, then you can see the recommended funds we have within the Japan region. There is little basis of comparing a Japan fund with a Europe fund.
For investors who are also interested in an allocation to the various sectors, we suggest that you go to our Assisted Buying module and try it out. A diversified portfolio will be suggested to you based on your risk profile, time horizon, and amount invested. For aggressive investors who wish to take more risk for the purpose of potentially higher returns, you can take note of the articles we sometimes put out highlighting Fundsupermart's view of a particular region.
We also have a star rating system assessable from the main page which shows our view towards each region here.
For a more detailed description of why we recommend any particular fund, please click on the recommended fund's name below:
Funds Payment Mode.
O - CPF Ordinary Account,
C - Cash Only,
S - CPF Special Account.
The figures in the above table were last updated on March 7, 2010.
The performance figures in the table above are calculated using offer-to-bid prices, with any income or dividends reinvested. Performance figures of over 1 year are annualised. (Eg. A 33.1% gain in 3 years works out to a 10% gain per year when annualised.) As per MAS regulations, the offer price is based on the normal sales charge which is higher than Fundsupermart's discounted sales charge.
Funds Payment Mode. O - CPF Ordinary Account, C - Cash Only, S - CPF Special Account.
From March 2004 to March 2009, the annualised return for Schroder Asian Bond Fund was 0.4%. This performance was stronger than that of most of its peers who have delivered negative returns between -1.32% to -4.27%. While the fund suffered a 2.86% fall in 2008, the performance is much more resilient as compared with most other peers who have suffered double digit declines. This fund exhibits great resiliency during tough times which makes it a core holding for investors looking to add stability into their portfolio.
Asian bonds may form part of an investor’s core portfolio, although they may be more volatile than global bond funds due to a more concentrated regional allocation. Bond prices typically have a low correlation with equity market movements; thus bond funds may increase portfolio diversification. The fund is denominated in SGD but investors should note that their currency exposure is spread across the various Asian currencies in which the fund’s assets are denominated. Investors should be aware that there could be active management of currency risks by the managers.
The Fidelity Funds – Asian Special Situations Fund was the best performing Asia ex-Japan fund on the platform over the five years ended March 2009, with an annualised return of 4.7% over the period. This compares favourably to the 0.08% average annualised return of funds in the category over this five-year period. Over calendar-year periods, the fund has been ranked between second and seventh place, a credible performance considering that there are twenty funds in the category. The fund was ranked fourth in 2004, second in 2005, and third in 2006.
Due to the diversified scope of the fund, it is expected to be less volatile than single-country Asian funds. While the fund is denominated in USD, investors should note that their currency exposure will be to the various Asian currencies of the different markets that the fund is invested in. However, currency risk is mitigated owing to the diversified nature of the fund across the various Asian markets.
The First State Asian Growth Fund was the second-best performing Asia ex-Japan fund on the platform over five years (end March 2004 to end March 2009), with an annualised return of 4.3% over the period. This compares favourably to the 0.08% average annualised return of funds in the category over this five-year period. Over cumulative one-year, two-year, three-year and four-year periods to 31 March 2009, the fund was ranked first once, second twice and third once. Over various periods of market downturns, the fund was consistently ranked as having a higher resiliency. In the recent market downturn from 29 October 2007 to 27 October 2008, the fund lost 51.9% as compared to the average decline of 60% for funds in the category.
Due to the diversified scope of the fund, it is expected to be less volatile than single-country Asian funds. Investors should note that their currency exposure will be to the various Asian currencies of the different markets that the fund is invested in. However, currency risk is mitigated owing to the diversified nature of the fund across the various Asian markets.
First State Bridge has been a consistently strong performer amongst its peers, returning an annualised 0.97% over the five-year period ending March 2009 which bettered performances of its peers. It was also the best performer based on cumulative returns over a four-year and three-year period ended March 2009. On a calendar-year basis, the fund was ranked first in 2004, 2006 and 2008, reflecting a strong consistent performance. The fund has also shown great resilience in market downturns. It recorded a decline of 34.8% between 29 October 2007 and 27 October 2008, significantly better than its peers which lost an average of 45.7% in the same period.
This fund may be suitable for inclusion in the core portfolio, even though it may be more volatile than global balanced funds due to a more concentrated regional allocation. The fund is invested in both bonds and equities, which means that there is diversification across asset classes. While the fund is denominated in SGD, the investor’s currency exposure will be to the various Asian currencies, but currency risk is mitigated due to the wide scope of currencies within the Asian region.
The First State Global Balanced Fund was the best performing global balanced fund (under the CPFIS-SA scheme) on the platform over the two years to end March 2009 with an annualised return of -12.5%, compared to the average annualised decline of 15.8% for funds in the category. The fund exhibited significant resilience in the recent market downturn, and was the most resilient in its category from 27 October 2007 to 9 March 2009, its 31.7% decline better than the average decline of 40.3% for its peers over this period.
The fund may be suitable for investors with a lower risk appetite in their core portfolios as it is diversified into both bonds and equities. There is diversification over asset classes as well as over geographical regions, given the global scope of the fund. Investors should note that while the fund is denominated in SGD, currency exposure is to the underlying currencies of the fund’s holdings of equities and bonds. Currency risk is mitigated due to the fund’s globally diversified nature.
The Schroder Emerging Europe Fund was the best performer in its category for cumulative returns over a one-year, two-year, three-year, four-year and five-year period ending March 2009. The fund lost an annualised 3.5% over the five-year period ended March 2009, better than the average 4.1% annualised decline of Emerging European equity funds on our platform. The fund was ranked second (out of the three funds in the category) in 2004, 2005, 2007 and 2008, reflecting the consistent nature of performance even on a calendar-year basis. The fund demonstrated relative resilience with a decline of 69% in the recent market downturn from 13 July 2007 to 9 March 2009, as compared to the average decline of 71.4%.
Funds which invest into the Emerging Europe region should be part of an investor’s supplementary portfolio. While it is a regional market, Emerging European equity funds tend to be more volatile than global and more-developed regional equity markets as political issues and inflationary conditions increase the uncertainty of investing in the Emerging European region. The fund is denominated in SGD but investors should note that their currency exposure will be to the various Emerging European currencies like the Russian rouble. The fund is also available in EUR.
The First State GEM Leaders was the best performing fund in its category for cumulative returns over one-year, two-year, three-year and four-year periods ended March 2009. The fund returned an annualised 6.3% over the four-year period (end March 2005 to end March 2009), a strong performance compared to the -0.7% average annualised return of its peers (those with a four-year history). The fund showed strong resilience in market downturns, with a 49.1% decline in the recent period between 29 October 2007 and 27 October 2008. This was relatively stronger than the 59.6% average decline for Global Emerging Market (GEM) equity funds over this period.
Spanning across multiple geographical locations and markets, volatility figures for global emerging market equity funds are expected to be lower than single-country emerging market equity funds. The fund is denominated in SGD but investors should note that their currency exposure will be to the various currencies of the emerging markets in which the fund invests. While currency risk is diversified across the various emerging markets, political issues and inflationary conditions are more inherent in GEMs which may result in higher currency volatility as compared to the developed markets.
From March 2004 to March 2009, the annualised return for United Global Emerging Markets Portfolios was 6.91%, the only positive performance among the funds assessed in this category. Much of the performance could be attributed to defensive decisions taken in 2008 which resulted in a lower single-digit fall in value as compared to its peers, some which have seen double-digit falls in value.
In the credit crisis that has unfolded in 2008, global emerging market bonds have demonstrated that they can be as volatile as equities. Sovereign debt from the developing countries of non-investment grade pedigree may default in tough times, affecting the returns of investors. The higher volatility and increased default risk means that investors should consider emerging market bonds as part of their supplementary portfolio. The fund is denominated in SGD but a large proportion of emerging market debt securities are denominated in USD. Investors should note that their currency exposure is largely to the USD when investing in this fund, but should also be aware that there could be active management of currency risks by the managers.
The Parvest Europe Dividend was the best performing European equity fund on the platform over a cumulative five-year period ending March 2009, with an annualised return of -2.7%, compared to the average of -5.6% for funds in the category. On a calendar-year basis, the fund was ranked first in 2004 and 2008, and second in 2006 reflecting consistently strong performance. The fund was ranked as the most resilient under various periods of market decline, and outperformed in the recent market downturn from 1 June 2007 to 9 March 2009 with a decline of 57.4%, compared to the average of 61.4% for European equity funds.
The European regional market is one of the five main regional markets and should form part of an investor’s diversified core portfolio. Due to the geographical diversity of the investment focus, a regional fund is expected to be less volatile than a more focused single-country equity fund. The fund is denominated in EUR and investors should note that while their currency exposure is largely to the EUR, they may be exposed to other European currencies like the British pound (GBP) or the Swiss franc (CHF).
The Legg Mason Global Bond Trust returned an annualised 2.4% over the five-year period ended March 2009, a strong performance compared to the -0.4% average annualised return of global bond funds on the platform. The fund was ranked first on a cumulative five-year, four-year and three-year period to March 2009, but fared less impressively on a calendar-year basis, an indication of the long-term approach of the fund. The fund did not score as well in terms of resiliency, declining more than average in the recent downturns in 2008 and 2009.
Global bond funds may form part of an investor’s core portfolio, and may be considered a suitable investment for more conservative investors. Bond prices typically have a low correlation with equity market movements; thus bond funds may help in managing portfolio risk. For conservative investors, it also represents an investment with good risk adjusted returns in the long term. Currency risk is widely diversified given the global nature of the fund, but investors should note that the fund aims to maximise total returns in SGD terms, which suggests active management of currency risks by the managers.
From April 2006 to March 2009, the annualised return for PIMCO Global Bond Fund was -1.61% which places the fund somewhere in the average in terms of returns. A credible performance came in the first quarter of 2009 where the fund delivered a return of 6.1% which was better than all peers. However, in the assessment of the bond funds, less emphasis was placed on returns as compared to equity funds. The fund has shown its ability to outperform its peers in times when markets become turbulent. For example, in the period from 18 December 2008 to 4 March 2009, the fund managed to return 9.7% where the average return of peers was -1.5%.
Global bond funds may form part of an investor’s core portfolio, and may be considered a suitable investment for more conservative investors. Bond prices typically have a low correlation with equity market movements; thus bond funds may help in managing portfolio risk. For conservative investors, it also represents an investment with good risk adjusted returns in the long term. According to the prospectus of the fund, non-USD currency exposure is limited to 20% of the fund’s total assets, so investors should be aware that their currency exposure will be largely to the USD.
The Aberdeen Global Opportunities Fund returned an annualised -2.1% over the past five years (March 2004 to March 2009), making it the best performing global equity fund for cumulative returns over this period. The average annualised five-year return was -6.1% for funds in this category. On a calendar-year basis, the fund was second in 2005 and 2008, third in 2007 and fourth in 2004, demonstrating a consistent ability to outperform most of its peers. The fund also scored well in terms of resiliency, delivering the second-best performance in the market downturn from 31 October 2007 to 9 March 2009.
This fund invests into equities around the world and benefits from global diversification. It is expected to be less volatile compared to more focused equity funds and is suitable for investors who take a long-term view of global equity markets but do not wish to consider country or sector allocations in a portfolio. The fund is denominated in SGD but investors should note that the globally-diversified nature of the underlying assets means that currency risk is mitigated.
The Schroder Global Smaller Companies Fund was the better performer in its category over cumulative one-year, two-year, three-year, four-year and five-year periods ended March 2009. It had an annualised return of -4% over the five-year period, bettering its peer’s -8.6% annualised return. The fund also demonstrated a strong performance on a calendar-year basis, ranking ahead of its peer in 2004, 2005, 2006 and 2008. Its resilience was demonstrated with a decline of 53.9% in the recent market downturn from 31 October 2007 to 9 March 2009, as the fund declined 53.9%, bettering its peer’s 66% drop.
Investors should note that due to the focus on smaller-sized companies, fund volatility is expected to be higher than traditional global equity funds with larger-company biases, especially during turbulent market periods. The fund may be suitable for investors who are more aggressive and do not mind taking on greater risk for higher potential returns. While the fund is denominated in SGD, the investor’s currency exposure is widely diversified due to the global nature of the fund.
The UOB United International Growth Fund’s five-year annualised return of -4.9% was better than the average of -6.1% for global equity funds on the platform (end March 2004 to end March 2009). The fund scored high on resiliency, finishing among the top six (out of the sixteen funds in the category) for varying periods of market decline. The fund lost 54.5% in the market downturn from 31 October 2007 to 9 March 2009, making it the fourth-best performer.
This fund invests into equities around the world and benefits from global diversification. It is expected to be less volatile compared to more focused equity funds and is suitable for investors who take a long-term view of global equity markets but do not wish to consider country or sector allocations in a portfolio. The fund is denominated in SGD but investors should note that the globally diversified nature of the underlying assets means that currency risk is mitigated.
The Henderson Global Technology Fund had an annualised return of -5% over five years (March 2004 to March 2009), compared to the average of -7.4%, making it the best performing global technology fund on the platform in the period. On a calendar-year basis, the fund demonstrated consistency in performance, as it was ranked first in 2007, second in 2004 and third in 2006 and 2008, out of the 6 global technology funds on the platform. The fund showed resilience, its decline of 47.9% in the recent market downturn from 31 October 2007 to 9 March 2009 being the least among its peers.
Despite the global mandate, suggesting some measure of global diversification, there is industry-specific risk when investing in the fund and it should be part of an investor’s supplementary portfolio due to its narrower focus as a sector fund. Volatility figures for this technology fund may be higher as compared to a global equity fund as technology stocks often exhibit higher betas. The fund is denominated in SGD but investors should note that the fund has a large exposure to US-based technology companies (as of 31 March 2009) and the investor’s currency exposure is largely to the US dollar, as well as other currencies of other underlying equities.
The Fidelity Funds – China Focus Fund was the best performing fund over the five years to end March 2009, with an annualised return of 12.0% compared to the average of 4.9% for Greater China equity funds on the platform. The fund was ranked second over cumulative one-year, two-year, three-year and four-year periods to 31 March 2009. On a calendar-year basis, the fund was ranked first in 2006 and second in 2007. It was also the second-best performer on a year-to-date basis (as of 31 March 2009) with a 10.7% return.
The fund invests primarily into Chinese companies listed on the Hong Kong Stock Exchange as well as companies which have significant business in China. Due to the narrower focus of the fund, volatility is expected to be higher than more-diversified Asia ex-Japan funds and should be part of an investor’s supplementary portfolio. The fund is denominated in SGD but the investor’s currency exposure will be to the various currencies of the Greater China region.
The First State Regional China Fund was the best performing Greater China fund on the platform over the three years to end March 2009 with an annualised return of 1.4%, compared to the average decline of 2.9% for funds in the category. The fund also demonstrated relative resilience, with a 54.3% decline in the market downturn from 30 October 2007 to 27 October 2008, compared to the average decline of 63.2% for its peers.
The fund invests into equities in the Greater China region of China, Hong Kong and Taiwan. Volatility figures for Greater China equity funds are expected to be higher than Asian ex-Japan equity funds owing to a more concentrated geographical allocation into these three markets. The fund is denominated in SGD but the investor will be exposed to the various currencies of the Greater China region.
From March 2004 to March 2009, the annualised return for Fidelity Funds – US High Yield Fund was -1.62% which made it the best performing fund assessed over the period. In terms of resiliency, the fund fell about 30.3% from 11 September 2008 to 11 December 2008, making it one of the worst performers. However, recent performance for the first quarter shows that the fund has the ability to make up for lacklustre resiliency with superior performance when market conditions are favourable.
The fund focuses on high-yield bonds in the US which has the largest high-yield market in the world. High-yield bonds may display equity-like volatility and thus it would be more appropriate for investors to limit high-yield bond funds to the supplementary portion of their portfolio.
From March 2005 to March 2009, the annualised return for PRU Monthly Income Plan Class A was -2.64% which made it one of the best performing funds in the category over this period. In terms of resiliency, the fund has fallen almost 22.3% from 11 September 2008 to 11 December 2008, but this was better than the rest of its peers in the high-yield category.
The fund has a flexible mandate that allows it to invest in both US high-yield and Asian high-yield bonds. The fund is also allowed to invest up to 20% in other investments aside from high-yield bonds. High-yield bonds may display equity-like volatility and thus it would be more appropriate for investors to limit high-yield bond funds to the supplementary portion of their portfolio.
(The PRU Monthly Income Plan Class A fund makes annual distributions. The monthly distribution class (Class M) is also available for investors who prefer more frequent payouts, but comes with a higher initial investment amount of S$10,000.)
The LionGlobal India Fund was the best performing India equity fund on the platform over a five-year period ended March 2009, with an annualised return of 10.2% compared to the average of 6.4% for funds in the category. The fund demonstrated consistent performance on a calendar-year basis, ranking first in 2004 and second in 2005, 2006, 2007 and 2008. In terms of resiliency, the fund was not the strongest performer in the recent market downturn from 4 January 2008 to 12 March 2009, a 62.1% decline ranking it third among the four funds in the category, but declines were in-line with overall market declines.
This is a single-country fund which invests in Indian equities and should be part of an investor’s supplementary portfolio due to its narrow focus. Volatility figures for single-country equity funds are generally higher than regional equity funds, particularly in developing markets. The fund is denominated in SGD but investors should note that their currency exposure will be to the Indian rupee (INR) when investing in this fund.
The DBS Japan Growth Fund’s annualised return over five years ended March 2009 was -6.9%, making it the best performer in its category. This compares favourably with the -9.3% average five-year annualised return for Japanese equity funds (with a five-year history) on the platform. On a calendar-year basis, the fund was the second-best performer in 2006 and 2008, and was ranked third in both 2005 and 2007.
Japan is the second largest economy based on nominal GDP figures, and has a relatively mature economy and developed equity market relative to its Asian counterparts. The fund is denominated in SGD but investors should note that their currency exposure will be to the Japanese yen (JPY).
The LionGlobal Japan Growth Fund was the second-best performing Japanese equity fund over a five-year period ending March 2009 with an annualised return of -7.9%, which was also better than the average of -9.3% for Japanese equity funds (with a five-year history) on the platform. On a calendar-year basis, the fund was ranked second in 2004 and third in 2006, while its -3.5% year-to-date return (as of 31 March 2009) makes it the second-best performing Japanese equity fund on the platform in 2009.
The Japanese regional market is one of the five main regional markets and should form part of an investor’s diversified core portfolio. Japan is the second-largest economy based on nominal GDP figures, and has a relatively mature economy and developed equity market relative to its Asian counterparts. The fund is denominated in SGD but investors should note that their currency exposure will be to the Japanese yen (JPY).
The LionGlobal Korea Fund was the best performing South Korean equity fund on the platform over five years (ended March 2009), with an annualised return of 3% compared to the average of 0.5% for funds in the category. It was also ranked first for cumulative returns over a one-year, two-year, three-year and four-year periods. On a calendar-year basis, the fund was ranked first in 2005 and 2008 and ranked second in 2006 and 2007.
This is a single-country fund which invests in equities listed on the South Korean stock exchange. Due to its narrow focus, the fund should be part of an investor’s supplementary portfolio and volatility figures for the fund are expected to be higher than that of regional equity funds. The fund is denominated in SGD but investors should note that their currency exposure is to the Korean won (KRW). Investors are advised to hold more than one single-country Asian fund in the supplementary portion of the portfolio to diversify market-related and currency risks.
The Schroder International Selection Fund – Latin American (USD) returned an annualised 11.7% over the five-year period ended March 2009, making it the best performing Latin American equity fund on the platform over this period. The fund was also the best performer in its category over the four-year period ending March 2009. In the recent market downturn from 21 May 2007 to 21 November 2008, the fund displayed relative resilience by declining 55%, less than its counterparts.
Funds that invest into sub-regions like Latin America should be part of an investor’s supplementary portfolio. While it is a regional market, Latin American equity funds tend to be more volatile than global and more-developed regional equity markets as political issues and inflationary conditions increase the uncertainty of investing in the Latin American region. The fund is denominated in USD but investors should note that their currency exposure will be to the various Latin American currencies rather than the USD. The fund is also available in SGD.
The Aberdeen Malaysian Equity Fund was the best performing Malaysian equity fund for cumulative returns over the past five years (end March 2004 to end March 2009). It returned an annualised 3.3% over this five-year period (as of 31 March 2009) compared to its peers’ average of 1.24%. In terms of resiliency, the fund fell the least during various periods of market corrections and downturns, within its peer group of four equity funds.
This fund should be part of an investor’s supplementary portfolio due to its narrow focus on Malaysian equities. As single country equity funds tend to be more volatile than regional equity funds, investors have to consider the political risk present in this developing market that may affect the performance of the fund. Investors should note that their currency exposure is to the Malaysian Ringgit. We recommend investors hold more than one single market equity fund in the supplementary portion of their portfolio to spread out market-related and currency risks.
The SGAM Singapore Dividend Growth returned an annualised -8.8% over the past three years (end-March 2006 to end-March 2009), better than its peers’ average of -12.2% and making it the best performing Singapore equity fund on the platform over this period. Over the 5-year period ending March 2009, the fund was ranked second with an annualised 2.1% return, only one of three funds in the category with a positive return.
The fund should be part of an investor’s supplementary portfolio due to its narrow focus on Singapore equities listed on the FTSE Straits Times Index. Investors have to consider the higher volatility of single country equity funds as compared to regional equity funds. As the fund’s exposure is to the SGD, there is no currency risk for Singapore-based investors, although investors may experience the risk of home bias which occurs from the concurrent participation in the local stock market.
The LionGlobal Taiwan Fund has shown a stronger four-year cumulative performance with an annualised return of -5.9% over the period to March 2009. It was also the more resilient fund over periods of market decline, outperforming its peers in five out of the six periods under analysis. In the recent market downturn from 19 May 2008 to 20 November 2008, the fund lost 48.9% outperforming its peer’s 54% decline.
The fund has a narrow focus as it invests solely in equities listed on the Taiwan Stock Exchange. Volatility of single-country funds are expected to be higher than more diversified regional equity funds and this fund should be part of an investor’s supplementary portfolio. The fund is denominated in SGD but investors should note that their currency exposure will be to the New Taiwan Dollar when investing in this fund.
The Aberdeen Thailand Equity Fund was the best performing Thailand equity fund based on cumulative returns over the past five years (end March 2004 to end March 2009). It was also ranked first in four out of the last five calendar-year periods amongst its peers.
While the fund has been relatively resilient in the face of market downturns, it is a single-country fund which invests solely in Thai equities and should form part of an investor’s supplementary portfolio due to the narrow focus. Investors may also wish to consider the risk of political instability in the country which could have a negative effect on the fund’s performance. The fund is dominated in SGD but the investors should note that their currency exposure is to the Thai baht (THB) when investing into this fund.
The Aberdeen American Opportunities Fund was the most resilient US equity fund on our platform over a cumulative five year period ending March 2009. The fund declined an annualised 5.1% over this five-year period, better than the 10.5% average decline of its peers. It was the second most resilient US fund in the recent market downturn from October 2007 to March 2009. The fund was the second-best performer in terms of performance based on an overall measure of cumulative and calendar-year returns.
The US market is relatively more mature and efficient as compared to other regional markets like Asia ex-Japan or the emerging markets. Investors in the fund should note that their currency exposure is to the US dollar.
The Fortis L Fund – Opportunities USA was the best performing US equity fund on the platform over a cumulative four-year period ending March 2009. It was the only fund among its peers to have a positive return over four years, with a 2.6% annualised return compared to the average decline of 9.5%. The fund was the most resilient in its category during the recent market downturn from October 2007 to March 2009, helped by a zero exposure to the troubled US financial sector (as at 31 March 2009).
The US market is relatively more mature and efficient as compared to other regional markets like Asia ex-Japan or the emerging markets. Investors in the fund should note that their currency exposure is to the US dollar.
CPFIS Registered Investment Administrator
