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# Singapore
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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

May 2014

  • The local stockmarket gained on healthy domestic economic data, and anticipation of fresh monetary stimulus by the European Central Bank. Meanwhile, the US Fed also hinted that it was in no hurry to raise interest rates.
  • The purchasing managers’ index, a leading indicator for factory output, rose to the highest level in six months on new orders and resilient export demand. Meanwhile, inflation accelerated to 2.5% mainly due to higher costs linked to car purchases.
  • Local stocks with exposure to public bus transport (our holdings include ComfortDelGro and SBS Transit) saw sharp rises as the government made sweeping changes towards a model that should reward higher quality standards with more predictable profit margins. The state will buy all the operating assets and collect all fares, while paying out contractual rates to private bus companies, in effect taking away revenue risk and making them asset-light. We are pleased that these changes will allow bus operators to make healthy earnings and focus squarely on improving service such as ensuring shorter waiting times. The land transport authority will be able to quickly address service problems and subsidise loss-making routes when necessary.
  • We took profits and exited Silverlake which has had a strong run. Meanwhile, we sold out of CapitaMalls Asia after CapitaLand’s unconditional cash offer to privatise the stock. With the proceeds, we added to existing holdings, including OCBC, Venture and Jardine Strategic, on attractive valuations.