Commodities Funds Outperformed FEFI in February

	Licensed dealer and Financial Adviser CPFIS Registered Investment Administrator

Language | English 中文 Fundsupermart.com | Global

Research

	Share

Commodities Funds Outperformed FEFI in February

March 4, 2010

Volatility left the FEFI marginally higher than where it was at end January 2010. Which funds contributed to this?

Author : iFAST Research & Content Team

Untitled Document

Chart 1: Year-to-date performance of the FEFI

iFAST compilations, as at 2 February 2010

FEFI Performance Review
Following the correction in January, we stated that more volatility is to be expected in markets. While sovereign debt troubles in Europe sent European markets tumbling, investors fled to alternative assets, sending commodities up. The losses from European funds balanced gains from commodity funds.

The FEFI, as at end January, stood at 1446.93 points and in February moved up marginally by 0.22% to 1443.22 points. On a year-to-date basis, the FEFI inched downwards further, falling by 4.17% since the start of the year. All figures are as at 26 February 2010.

From a funds-eye view, some of last month’s top performers were this month’s bottom performers and vice versa. So which funds outperformed the FEFI, and which funds underperformed?

Table 1: FEFI Index Levels
	FEFI	Year-to-date (%)	Month-to-date (%)
31-Dec-2009	1506.06	0.0%	0.0%
29-Jan-2010	1439.93	-4.5%	-4.5%
26-Feb-2010	1443.22	-4.17%	0.22%
Source: iFAST compilations, as at 26 February 2010, performances in the table are in SGD terms, calculated using bid-to-bid prices, with any income or dividend reinvested.

Top Funds February 2010

Table 2: Top 5 Equity Funds in February 2010
	Market / Sector	Return (year-to-date)	Return (month-to-date)
United Gold & General Fund	Gold & Minerals	-4.06%	7.06%
ING Inv Latin America USD	Latin America	-3.69%	5.66%
CAAM Funds Latin America Equities	Latin America	-5.57%	4.86%
ING Inv MENA USD	Middle East & Africa	3.88%	4.74%
United Global Resources Fund	Resources	-3.48%	4.36%
Source: iFAST compilations, as at 26 February 2010

Top performing funds in February centred on commodities. The United Gold & General Fund, with its holdings of gold mining equities in Canada and the US, outperformed other funds by returning 7.06% in February.

The ING Inv Latin America USD Funds and the FLF Equity Latin America USD Fund (formerly known as the CAAM Funds Latin America Equities Fund) also turned in positive performances, returning 5.66% and 4.86% respectively. Both funds invest heavily in Latin America, in particular Brazilian equities, with materials and commodity stocks making up a good part of their portfolios.

The ING Invest MENA USD returned 4.74% in February, thanks to holdings in energy equities and Middle Eastern equities.

Rounding up the commodities run, the United Global Resources Fund returned 4.36% with holdings in materials and energy stocks.

Bottom Funds February 2010

Table 3: Bottom 5 Equity Funds in Febraury 2010
	Market / Sector	Return (year-to-date)	Return (month-to-date)
HGIF Turkey Equity Fund SGD CL AD	Turkey	-4.78%	-11.11%
Fidelity Iberia EUR	Iberia	-16.11%	-9.26%
Fidelity Italy EUR	Italy	-13.66%	-7.33%
Schroder ISF Em Eur A Acc EUR	Emerging Europe	-5.13%	-6.72%
FLF Eq Europe Emerging EUR	Emerging Europe	-5.81%	-6.50%
Source: iFAST compilations, as at 26 February 2010

Putting in the most underperformance for the month was the HGIF Turkey Equity Fund, which fell 11.11%. It’s holdings in banks and financial institutions caused the fund to underperform the FEFI. The Europe region similarly underperformed the FEFI, as the remaining four funds all have the majority of their holdings in European countries.

The Fidelity Iberia fund invests primarily in Spanish and Portugese equities, and has the majority of its assets in Spain while the Fidelity Italy fund invests in Italian equities. Both funds hold significant amounts of their portfolio in the financial sector, which contributed to their underperformance.

Emerging Europe was the other European region that contributed to negative returns. The Schroder ISF Em Europe Fund fell 6.72%, thanks to its overweight in financials and energy sectors. The FLF Eq Europe Emerging Funds similarly overweight financials and energy sectors and fell 6.5%.

Related Articles:

A new year sees FEFI down 3.9%

FSM All-Equity Fund Index (FEFI) up 50.7% in 2009

FEFI Rises Slightly Amid Dubai Debt Standstill

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

The Research & Content team is part of iFAST Financial Pte Ltd.

iFAST and/or its licensed financial adviser representatives may own or have positions in the funds of any of the asset management firms or fund houses mentioned or referred to in the article, or any unit trusts or Singapore Government Securities bonds related thereto, and may from time to time add or dispose of, or may be materially interested in any such unit trusts or Singapore Government Securities bonds. This article is not to be construed as an offer or solicitation for the subscription, purchase or sale of any fund. No investment decision should be taken without first viewing a fund's prospectus. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Past performance and any forecast is not necessarily indicative of the future or likely performance of the fund. The value of units and the income from them may fall as well as rise. Opinions expressed herein are subject to change without notice. Please read our disclaimer in the website.