February 5, 2010 A new year sees FEFI down 3.9% The FEFI fell 3.9% in January of 2010. Find out which funds contributed to the fall, and which funds held steady. by iFAST Research & Content Team

Chart 1: Year-to-date performance of the FEFI iFAST compilations, as at 2 February 2010 FEFI Performance Review The first month of 2010 saw markets correct. The FEFI, from 1506.06 points at the end of 2009, was down 3.9% to 1446.93 points (as at 2 February 2010). As countries begin to withdraw from their stimulus, more volatility is expected in markets. China hiked the reserve ratio of banks on 12 January 2010 in a bid to rein in concerns over inflation. In the US, Barack Obama announced fiscal reforms, although concrete plans remain sketchy as at 2 February 2010. The impact of such reforms, while positive in the long-term will likely see volatility increase and more corrections are likely in the short-term. Similarly, after a strong run up in 2009, investors may be taking some profit due to the healthy run up. 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% 28-Jan-2010 1446.93 -3.9% -3.9% Source: iFAST compilations, as at 2 February 2010, performances in the table are in SGD terms, calculated using bid-to-bid prices, with any income or dividend reinvested. Top Funds January 2010 Table 2: Top 5 Equity Funds in January 2010   Market / Sector Return (year-to-date) Return (month-to-date) HGIF Thai Eqty Fd USD AD Thailand 7.1% 7.1% Fidelity Iberia EUR Emerging Europe 3.3% 3.3% Fidelity Italy EUR Italy 2.8% 2.8% Henderson Hzn Pan Europn Prop Eq-A2 EUR Property 2.7% 2.7% Aberdeen Indonesia Equity Indonesia 2.6% 2.6% Source: iFAST compilations, as at 2 February 2010 Against the down market Europe, Thailand and Indonesia returned positive performances, but only just barely. Leading with 7.1% is the HGIF Thai Equity Fund, which benefitted from investors seeking cheaper markets, as well as their overweight in financials. The Fidelity Iberia fund invests primarily in Spanish and Portugese equities, and has the majority of its assets in Spain. The Fidelity Italy fund invests in Italian equities. Both funds returned positive performances thanks to substantial holdings in financials. Investors also found positive returns in the Henderson Horizon Pan European Property fund, which invests in property equities across Europe. Outperforming the FEFI, the Aberdeen Indonesia Equity fund also moved up by 2.6% thanks to overweighting in consumer and infrastructure sectors. Bottom Funds January 2010 Table 3: Bottom 5 Equity Funds in January 2010   Market / Sector Return (year-to-date) Return (month-to-date) FLF Eq Brazil USD Brazil -12.9% -12.9% FLF Eq Latin America USD Latin America -11.8% -11.8% FLF Eq Materials World EUR Resources -11.1% -11.1% DWS China Eqty Fund Cl A SGD China -10.4% -10.4% Fidelity S East Asia USD Asia ex-Japan -10.1% -10.1% Source: iFAST compilations, as at 2 February 2010 Latin America and Materials led the charge downwards. The Bovespa Index fell 6.79% YTD, as at 4 Febuary 2010. Correspondingly, funds with a Brazil emphasis followed. The FLF Equity Brazil USD shed 12.9% while the FLF Equity Latin America USD fund fell 11.8%. Both funds had substantial investments into Brazil, which contributed to their fall. The FLF Equity Materials World EUR fund shed 11.1% with a large weighting in mining and metal companies. The DWS China Equity Fund also saw a 10% drop due to tightening measures from the Chinese government. The Fidelity Southeast Asia USD fund also saw a large drop due to its exposure to East Asia, in particular China, Korea and Taiwan. Related Articles: 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.

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