Date of Launch
Authorised for Sale
Asian Equities Team
Other Equities Funds
Aberdeen Singapore Equity Fund
Aims to provide holders with medium to long-term capital growth from a portfolio of Singapore equities.
Manager's Monthly Report
- Singapore equities fell in January as data signalled that China’s economy was
slowing further, and the US Fed tapered by another US$10 billion. We think that the
fundamentals are still positive for companies in Singapore, and as long-term investors
will be looking for buying opportunities.
- Early estimates showed that a slowdown in manufacturing caused weaker than
expected GDP growth for the fourth quarter of 2013. Full-year GDP growth, however,
is estimated to be 3.7%, compared to 1.3% in 2012. Hence, domestic growth is still at
healthy levels, especially for local firms with regional exposure. It was also encouraging
to see improved data for industrial production and manufacturing growth, and a
rebound in non-oil domestic exports.
- OCBC is in exclusive talks to acquire Hong Kong’s Wing Hang Bank. Despite market
concerns about overpaying for a business with lower returns, we understand the
strategic rationale and are supportive as long-term shareholders. Through Wing Hang,
OCBC gains a foothold into the Greater China region. The deal should also improve its
trade financing capabilities with the access to the offshore yuan market.
- In management changes, City Developments appointed Grant Kelley as CEO, after years
of family members in key management positions. We view this development positively
as it will raise management standards and help the company grow beyond Singapore.
- Over the month we continued to build up our position in CapitaMalls Asia on weakness.