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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

September 2014

  • Local stocks fell in September as indicators from China continued to weaken, along with expectations of higher interest rates in the US. Domestic data was mixed and pointed towards moderate growth. Partly mitigating losses were hopes of further stimulus measures in China and Europe.
  • In corporate news, Far East Hospitality Trust is collaborating with Far East Organisation to develop a S$443.8 million hotel project on Sentosa Island, Singapore. While it is uncommon for Singapore-based real estate investment trusts (REITs) to develop properties, we see this as positive as the REIT will participate in potential property gains and will acquire its stake at a discount.
  • Offshore marine and rig builders Keppel Corp and Sembcorp Marine reported new developments. Keppel Corp will perform the world’s first conversion of a liquefied natural gas carrier, into a floating vessel that can convert gas into liquid form for transportation. Keppel will also take a 10% stake in the project. Additionally, the firm secured its fifth rig contract worth US$227 million from Gulf Drilling International in Qatar. Meanwhile, Sembcorp will invest S$222 million in a steel fabrication facility, while also building another three dry docks to meet demand.
  • Over the month, we participated in the OCBC rights issue as the 25% discount is attractive and helps shore up the bank’s balance sheet, after the acquisition of Wing Hang Bank. We also added to CapitaLand on the back of appealing valuations, and management’s renewed focus on unlocking shareholder value.