- FSMI – All Equity declined 0.4%in March, bringing year-to-date returns to 9.5%
- Top 5 equity funds: United E-Commerce Fund, United Global Technology Fund, Amundi Oasis MENA Fund SGD, LionGlobal Vietnam SGD, Eastspring Inv UT Global Tech
- FSMI – All Bond declined 0.2%in March, bringing year-to-date returns to 2.1%
- Top 5 bond funds: United Renminbi Bond Fund SGD, LionGlobal Asia Bond SGD, Schroder Strategic Bond Fund, PIMCO Glb Bond Cl E USD, LionGlobal Emg Mkt Bond A SGD Hedged
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
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
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
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
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