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Slight Declines for Both FSMI – All Equity and FSMI – All Bond in March April 11, 2012
Both indices recorded slight declines in March. However, both were still positive for the year.
Author : Fundsupermart

Slight Declines for Both FSMI – All Equity and FSMI – All Bond in March

 

Key Points

 

FSMI – All Equity Performance review

After a strong run-up since the start of the year, the FSMI – All Equity witnessed its first signs of volatility in March. While the index was down 0.4% for the month, it still posted a year-to-date return of 9.5%.

 

Chart 1: 1-Year performance of the FSMI – All Equity

 

TOP EQUITY FUNDS March 2012

Table 1: Top Five Equity Funds in March 2012
Fund Name Market/Sector Returns
Month-on-month Year-to-date
United E-Commerce Fund Internet Theme/Global 6.3% 16.4%
United Global Technology Fund Technology/Global 6.1% 18.6%
Amundi Oasis MENA Fund SGD Middle East & Africa 6.0% 12.7%
LionGlobal Vietnam SGD Vietnam 5.6% 25.4%
Eastspring Inv UT Global Tech Technology/Global 5.6% 16.9%
Source: iFAST compilations, all dividends reinvested, returns in SGD terms, as at 31 March 2012. SGD share class was selected for funds with multiple currency classes.

 

Technology funds were the outperformers in March due to an overall improvement in investor sentiment with regards to the sector. The surge in stock price of Apple Inc., a mainstay of technology funds, also boosted the returns of technology funds. All three funds on our top five list count Apple Inc. as their largest holding. While United E-Commerce Fund and United Global Technology Fund do not disclose their portfolios’ allocations in their top ten holdings, Eastspring Investments Unit Trusts – Global Technology Fund had 10.2% of its portfolio invested in the company (as of 28 February 2012).

The other two funds on the top five list, coming in at third and fourth place respectively, are Amundi Oasis MENA Fund SGD and LionGlobal Vietnam SGD, both of which invest in the more risky equity space. For more information on how the different geographical markets performed in the first quarter of 2012, please refer to Investment Outlook Review and Changes to Star Ratings – 1Q 12.

 

bottom Equity FUNDS March 2012

Table 2: Bottom Five Equity Funds in March 2012
Fund Name Market/Sector Returns
Month-on-month Year-to-date
DWS Noor Prec Metals CL J SGD Islamic Theme/Global -13.9% -6.6%
JPM Global Mining USD A Acc Gold & Minerals/Global -10.4% 3.3%
JPM Global Natural Resources (SGD) A (acc) Resources/Global -9.8% 4.6%
United Gold & General Fund Gold & Minerals/Global -9.7% -3.7%
Schroder AS Gold&Prec Metals A Acc SGD Alternative Investments - Commodities -9.3% 2.7%
Source: iFAST compilations, all dividends reinvested, returns in SGD terms, as at 31 March 2012. SGD share class was selected for funds with multiple currency classes.

 

All five funds in the bottom performing list are invested in the commodities and resources sectors. Despite increases in the prices of crude oil due to geopolitical tension, worries over a slowing China economy and resulting softer demand for commodities dented the performances of companies operating in this sector.

 

FSMI – All Bond Performance review

The FSMI – All Bond also posted a decline of 0.2% in March, bringing year-to-date returns to 2.1%.

Chart 2: 1-Year performance of the FSMI – All Bond

 

TOP BOND FUNDS March 2012

Table 3: Top Five Bond Funds in March 2012
Fund Name Market/Sector Returns
Month-on-month Year-to-date
United Renminbi Bond Fund SGD General/China-H 1.9% 4.5%
LionGlobal Asia Bond SGD General/Asia ex Japan 1.6% 4.1%
Schroder Strategic Bond Fund General/Global 1.2% 2.8%
PIMCO Glb Bond Cl E USD General/Global 1.2% -1.0%
LionGlobal Emg Mkt Bond A SGD Hedged Corporate/Emerging Markets 1.1% 8.5%
Source: iFAST compilations, all dividends reinvested, returns in SGD terms, as at 31 March 2012. SGD share class was selected for funds with multiple currency classes.

 

The top bond fund for March was the Untied Renminbi Bond Fund SGD. While the expected appreciation of the Chinese yuan’s (CNH) is one of the key reasons for exposure to the currency, the United Renminbi Bond Funds have managed to turn in relatively good performances despite having the CNH depreciating 2.6% for the quarter ending 31 March 2012. Though the fund may invest into both sovereign and corporate bonds denominated in CNH, it appears it has a greater exposure to corporate which offer better yields, contributing to the positive performance.

 

Bottom BOND FUNDS March 2012

Table 4: Bottom Five Bond Funds in March 2012
Fund Name Market/Sector Returns
Month-on-month Year-to-date
Schroder ISF EM Debt Ab Rt A Dis SGD-Hedged General/Emerging Markets -3.2% -3.3%
JPM EmMkt LocalCcy Debt USD A Mth General/Emerging Markets -2.9% 4.7%
ING (L) RF EM Debt HC X EUR Hedge General/Emerging Markets -2.3% 5.8%
Legg Mason WAM Asian Opp A-S$ DIS (Q) General/Asia ex Japan -1.8% -0.5%
Legg Mason WA Asian Opp A SGD H (qdis) General/Asia ex Japan -1.7% 3.1%
Source: iFAST compilations, all dividends reinvested, returns in SGD terms, as at 31 March 2012. SGD share class was selected for funds with multiple currency classes.

.

 

Related Articles

Investment Outlook Review and Changes to Star Ratings – 1Q 12
Top Funds 1Q 12: Aggressive Funds Lead The Way
Equity Market Review 1Q 12: A Positive Quarter for All Markets
Top Funds Review 2011: South-East Asia Equity Funds Outperformed
Clean Records Remain Intact for Both FSMI – All Equity and FSMI – All Bond In 2012
FSM Indices Slide in November
FSMI – All Equity Stages A Rebound in October



 
iFast 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. If you have any queries about the above contents, please contact iFAST.

 
RELATED FUNDS
United Global Technology Fund
United E-Commerce Fund
PIMCO Glb Bond Cl E Acc USD
LionGlobal Vietnam SGD
LionGlobal Asia Bond SGD
LionGlobal Emg Mkt Bond A SGD Hedged
Eastspring Inv UT Global Tech
Schroder Strategic Bond Fund
Amundi Oasis MENA Fund SGD
United Renminbi Bond Fund SGD