| Chart 1: Year-to-date performance of the FEFI |
 |
|
| iFAST compilations, as at 30 November 2009 |
FEFI Performance Review
The FEFI ended 2.25% in November, despite the late surprise from Dubai. Year-to-date, the FEFI has risen 44.9% (as at end November 2009). On 26 November 2009, Dubai called for a debt standstill of 6 months. This sent Middle Eastern markets tumbling, while European bank stocks slumped 4.9% that day, while the DJ Stoxx 600 index fell 3.3% (returns in EUR terms). Asian markets followed, as the MSCI Asia ex-Japan lost 3.6% (in USD terms) on 27 November 2009.
On the economic news front, the US economy officially emerged from recession, posting 3.5% GDP growth in 3Q09 on a quarter on quarter annualised basis. Consumption rose thanks to the “cash-for-clunkers” and housing credit schemes. Stimulus money played a part, although the effect of this should not be overstated as 23% of stimulus money has been spent, according to estimates.
Globally, interest rates remained steady, with the exception of Australia, which raised rates as confidence in their economic recovery grew. With multiple governments keeping rates low, demand for financial assets remains healthy.
However, this may raise concerns of inflation, as evidenced by our top five funds in November.
| Table 1: FEFI Index Levels |
| 31 Dec 2008 |
1,000 |
- |
- |
| 31 Jan 2009 |
977.21 |
-2.3% |
-2.3% |
| 27 Feb 2009 |
921.57 |
-7.8% |
-5.7% |
| 31 Mar 2009 |
990.44 |
-1.0% |
7.5% |
| 30 Apr 2009 |
1,097.87 |
9.8% |
10.8% |
| 31 May 2009 |
1,229.48 |
22.9% |
12.0% |
| 30 Jun 2009 |
1,245.25 |
24.5% |
1.3% |
| 31 Jul 2009 |
1,360.23 |
36.0% |
9.2% |
| 31 Aug 2009 |
1,371.79 |
37.2% |
0.8% |
| 30-Sep-09 |
1425.31 |
42.5% |
3.9% |
| 30-Oct-09 |
1416.79 |
41.7% |
-0.6% |
| 30-Nov-09 |
1448.75 |
44.9% |
2.25% |
Source: iFAST compilations, as at 30 November 2009, performances in the table are in SGD terms, calculated using bid-to-bid prices, with any income or dividend reinvested. |
Gold in demand
Four of the five top performing funds in November invested in resource companies.
Part of this is in response to uncertainty over the USD, which many agree to be on a downward trend. Consequently, gold prices have been on an uptrend, rising 30% year to date (as at 1 December 2009). As at 4 December 2009, spot gold trades above USD1200 per ounce. Other commodities have risen in response to uncertainty over the USD, along with demand from emerging economies. This also boosted performance from Latin America, which exports much of its commodities to the world.
Philippine equity made an appearance in the November’s best performers, as investors sought bargains as the country continues to lag behind in terms of economic growth.
Middle East underperforms
Affected by the Dubai debt standstill, Middle Eastern markets fell, landing both Middle East and Turkey funds in the bottom-performing list.
Fears over the amount of UK public debt also caused European property to fall.
The Vietnam market also fell, as the Vietnamese government raised rates while devaluing their currency in an effort to combat inflation.
Related Articles:
FEFI Marginally Down In October, Chinese Funds Took Top Spot
FEFI performed beyond bearish September expectations
A flattish August for the FEFI
FEFI surges another 9.2% in July 2009!
FSM All-Equity Fund Index Up 24.5% At The Half-Year Mark
Big Rise In The FEFI (SG) In May! The FEFI Surged 12%
FEFI (SG) up 10.8% in April, in positive territory for 2009
FEFI (SG) up 7.5% in March, driven by buoyant equity markets
Introducing the FSM All-Equity Fund Index (SG)
FSM All-Equity Fund Index (SG) Methodology
FSM Fund Indices |
CPFIS Registered Investment Administrator
