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# Singapore
  (SGT)
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Aberdeen Singapore Equity Fund

Objective

Aims to provide holders with medium to long-term capital growth from a portfolio of Singapore equities.

 

Manager's Monthly Report

June 2015

  • The local stockmarket declined on the back of investors’ concerns over the banking, property and energy sectors. A slowdown in loan growth weighed on the local banks, while they continued to post healthy expansion in other markets such as China; continued weakness in the property market subdued the local developers; while the energy sector remained mired by low oil prices.
  • First-quarter GDP growth outpaced estimates at 2.6%, owing to better-than-expected growth in services and manufacturing. Non-oil domestic exports slowed in April, but beat expectations of a contraction.
  • In quarterly results, City Developments’ earnings were flat, as higher contributions from property development and hotel operations were countered by higher operating costs. There are hopes that the property cooling measures may be relaxed in the coming quarters, which would benefit the firm considerably given its large domestic exposure. Global Logistic Properties reported lower earnings, largely due to weaker revaluation gains, but excluding this, profits increased thanks to robust rental demand in Brazil, China and Japan.
  • Raffles Medical invested in a joint venture with Shanghai LuJiaZui Group to develop a 400-bed international hospital in Shanghai’s Pudong district. Raffles Medical will own a 70% stake and retain full management and operating control. We are positive about the project given the increasing demand for high-quality healthcare in China.
  • ST Engineering’s results were hurt by continued weakness in its US marine division, as well as lower earnings from land systems. On a positive note, the group’s order book remains resilient and cash flows were robust. Management aim to achieve the same level of sales and profits for 2015 as the prior year.
  • There were no major portfolio changes over the month.