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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

April 2015

  • The local stockmarket rose in April in line with most global markets. Risk appetite improved, the US dollar weakened, while oil prices edged higher. In the region, China loosened bank reserve requirements to boost liquidity, while investors anticipated further stimulus.
  • The Singapore dollar strengthened by 3.9% against the US dollar over the month, after the central bank chose to stick to a gradual path of appreciation for the currency.
  • In quarterly results, our bank holdings, DBS, OCBC and UOB, generally met expectations, as they continued to post solid non-interest income growth. Only UOB reported an expansion in net-interest margins. Loan growth was also led by UOB, but slowed at DBS and OCBC due to the unwinding of US-dollar loans. OCBC’s earnings were boosted by the Wing Hang Bank acquisition and higher contributions from associates. The capital positions at all three banks remained sound.
  • Venture Corp posted decent earnings with an increase in both revenues and margins, despite a rapid rise in research and development expenses and higher income taxes.
  • In M&A news, SingTel will buy US-based Trustwave Holdings, a provider of online security services, for US$850 million. This is in line with its strategy to become a global player in cyber security. Trustwave is expected to contribute to earnings from the second year.
  • Over the month, we took some profits from Keppel Corp and Wheelock Properties on relative price strength. With the proceeds, we added to CapitaLand and Raffles Medical as valuations still look attractive.