FUNDSUPERMART RECOMMENDED UNIT TRUSTS REPORT 2007

Our annual recommended unit trusts report is out! Out of the multitude of unit trust offerings on our platform, our research department has shortlisted a grand total of 32 funds that form the cream of the crop, including a couple of newcomers – Southeast Asia and Malaysia equities. We explain our rationale for the selection of the recommended funds, and how they would fit in an investor’s core and supplementary portfolios. Our selection of funds is based on several criteria, both quantitative and qualitative. Here is the list of Recommended Unit Trusts for 2007:

• M&G American Fund
• Fidelity Funds – America Fund (USD)
• Aberdeen Pacific Equity Fund
• United Asia Fund
• PRU Pan European Fund
• Fidelity Funds – European Growth Fund (EUR)
• Lion Capital Japan Growth Fund
• DBS Japan Growth Fund
• Aberdeen Global Emerging Markets Fund
• Shenton Global Opportunities Fund
• United International Growth Fund
• Shenton Global Advantage Fund
• Shenton Income Fund
• Lion Capital Global Bond Fund Class A
• Franklin Templeton Funds – Global Bond Fund
• Legg Mason Asian Bond Trust
• ABN AMRO GEM Bond Fund (EUR)
• DWS Premier Select Trust
• First State Bridge
• Legg Mason SEA Special Situations Trust
• Schroder ISF – Latin American (USD)
• ABN AMRO Eastern Europe Equity Fund
• HSBC GIF Chinese Equity
• First State Regional China Fund
• DWS Singapore Equity Fund
• DWS Singapore Small/Mid Cap Fund
• Lion Capital Malaysia Fund
• Aberdeen Thailand Equity Fund
• Lion Capital Korea Fund
• Fidelity Funds – Taiwan Fund (USD)
• First State Asia Innovation & Technology Fund (USD)
• Fidelity Funds – Technology Fund (EUR)

When investors buy into a unit trust, the expense ratio of the fund may not be one of the factors that they take into consideration. Incidentally, the expense ratio is a key criterion in determining our list of Recommended Funds. In the school article “High Expense Ratios May Snip Off Returns”, we explain to investors what a fund’s expense ratio is all about, and how the introduction of new expense ratio caps by the Central Providend Fund (CPF) Board on CPFIS-registered unit trusts is impacting the industry.

Another key criterion when selecting our Recommended Funds is ‘Risk’. Very often, risk in the unit trust universe refers to a fund’s volatility. However, risk in our definition is different, as we explain in the article “Fund Resilience Is Important!’ We define risk as the ‘resilience’ of a fund during periods when markets slump. In this article, we study some funds, specifically the global equity and Asia ex-Japan equity funds which we recommend, which have shown resilience over various periods of time. The resilience of a fund does matter, especially when markets turn volatile!

A wealth of useful information awaits you in the latest Fundsupermart Recommended Unit Trusts Report 2007. Grab your copy today!

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