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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

March 2015

  • Local stocks edged higher as risk sentiment was buoyed by the US Federal Reserve’s reassurance that any rate hikes would come gradually. Australia and China cut interest rates, while markets anticipated the beginning of full-scale quantitative easing in Europe. Furthermore, several trading partners marked an improvement in economic data.
  • The Budget for 2015 included plans to raise income tax for high earners, while reducing rates for middle-income households. Meanwhile, small businesses will receive funding support and tax incentives, while REITs were granted a five-year tax-concession extension, but would be subject to stamp duties for local properties. The state was projected to run a fiscal deficit of S$6.7 billion, mainly to finance infrastructure investments, particularly S$3 billion allocated towards the Changi Airport Development Fund.
  • In quarterly results, the three local banks Oversea-Chinese Banking Corp, United Overseas Bank and DBS Group slightly missed expectations, with both deposit and loan growth slowing in tandem with higher provisions. Nevertheless, asset quality remained resilient, with limited exposure to the volatile energy and commodities segments. OCBC reported the strongest results, helped by contributions from Hong Kong’s Wing Hang Bank, which it acquired last year.
  • Raffles Medical continued to perform well with growth in both its clinics and hospital segments. SingTel was boosted by robust contributions from regional associates. Venture Corp posted decent results with strength across most divisions, pared by an increase in taxes.
  • We initiated a position in Global Logistic Properties as the company’s scale and network makes it well-placed to tap the growth in China’s logistics industry. It also trades at reasonable valuations.