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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

February 2014

  • Singapore equities rebounded in February as Janet Yellen gave no surprises in her first testimony to Congress as US Fed chief. She also reassured markets that rates would be kept at near-zero well past the time that unemployment falls below 6.5%. Some better domestic data also buoyed sentiment.
  • Fourth-quarter GDP growth was revised upwards to 5.5% year-on-year, up from previous estimates of 4.4%.
  • The government budget for 2014 was announced and interestingly when questioned the finance minister said that it was ‘too early to relax property measures’. This indicates that if property prices do fall beyond a certain threshold, they may remove some of the curbs to support the market. It provides comfort for our property holdings such as City Developments as, much as we had expected, it shows that the government does not want an overly large correction in home prices. Importantly, there were no tightening of rules on foreign workers which helps our holdings such as Keppel and SATS which are more labour-intensive.
  • We exited from Singapore Press Holdings, whose core newspaper business has been in gradual decline. In addition, the hidden value in the property business has largely been realised after it was spun off and cash has been returned to shareholders in the form of a special dividend. The company was also trading at a higher valuation relative to its peers.