Funds GreatLink - Great Eastern Life

More documents

Recommendations

Info

GREATLINK ENHANCER FUND report as at 31 December 2005 FUND FACTS Inception Date 26 April 1996 Offer Price S$ 1.637 Bid Price S$ 1.556 Fund Size Fund Manager FUND OBJECTIVE & INVESTMENT STRATEGY The Fund objective is to achieve long term capital appreciation by investing primarily in the equity markets of the Asian Pacific region. The Fund shall invest in the Singapore market as well as most markets in the Asia Pacific region, including Australia, China, Hong Kong, India, Indonesia, Malaysia, New Zealand, Philippines, South Korea, Taiwan and Thailand. PORTFOLIO WEIGHTINGS S$ 343.40 mil Lion Capital Management (wef 26 Sep 2005) Bid-Offer Spread 5% Fund Management Fee 1.00% p.a. Valuation Frequency Daily Currency of Fund Singapore Dollar CPF Approved CPFIS – OA Risk Category Higher Risk / Narrowly Focused Mercer Fund Rating as at 31 Dec 2005 N.A S&P Fund Stars as at 31 Dec 2005 ★★★★ Taiwan Singapore 11% 6% Malaysia 2% Korea 20% Indonesia 2% Thailand 2% Cash & Cash Equivalents 2% India 7% Hong Kong 7% FUND PERFORMANCE SINCE INCEPTION Performance Review (Apr 1996 to Dec 2005) Price Indexed 180 160 140 120 100 80 60 Australia 31% China 10% +63.79 +39.91 MARKET REVIEW For the half year ended 31 December 2005, the fund gained 17.17% (bid-bid), outperforming the benchmark MSCI AC Asia ex- Japan index which rose 12.51%. The year 2005 proved to be a good year for the Asian bourses, although Asian economies were rocked by several catastrophes including the aftermath of the Asian tsunami, Bali bombing and the Pakistan earthquake. MSCI Asia Pacific ex Japan index outperformed the world index, with a total SGD return of 26.09% vs 12.07% for the world index. In particular, strong liquidity inflows led to the significant outperformance of Korea and India against the regional index, while Taiwan, Malaysia and Thailand have underperformed in the last 2 years, dogged by uncertain policies and depressed investor sentiment. Despite having to deal with the plunging rupiah and fuel price hikes, MSCI Indonesia index rose 18% in SGD terms while China posted a strong 22% return for the whole year. 2005 was also a record year for equity issuance, dominated by China, raising more than US$25b with large scale deals coming from the bank and insurance sectors. At a sector level, Energy, Tech and Healthcare outperformed, while Telecoms and Utilities lagged. Over the course of 2005, fears of rising inflation was a prevalent theme across the region, with rates being adjusted substantially in Indonesia, Hong Kong, Thailand and Singapore. Most currencies depreciated against the US dollar, especially the Indonesian rupiah and the Thai baht. 2005 was also a year of widespread strength among commodity prices, with the CRB Futures index rising 22.5% and significantly higher prices of energy, precious metals and base metals. This strength is mainly driven by robust Chinese growth, low inventories, on-going supply bottlenecks and supply disruptions. The fund’s performance can be attributed to stock picks. Other than in Philippines and Thailand, stock selection in all other markets added value. The fund has benefited by focusing on the sectors within the country that will deliver earnings growth and reasonable dividend yields such as industrial and materials sectors in Australia, consumer sectors in China, property sector in Hong Kong and industrials and telecommunications sectors in India. In terms of country allocation, the overweight in Thailand dragged down the fund’s performance as the market was hurt by negative sentiment caused by delayed privatizations, slow development of the mega-projects, rising inflationary pressure and political risks. 28 40 20 Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec 96 97 98 99 00 01 02 03 04 05 ––––– Greatlink Enhancer Fund ––––– Benchmark Index Benchmark: MSCI All Countries Asia Pacific ex Japan (Gross). For Top 10 Investments refer to page 88. MARKET OUTLOOK We expect regional equity markets to continue its outperformance relative to the world in 2006, given the more attractive valuations and better economic growth. Rising interest rates and high oil and commodities prices are the key risks in PERFORMANCE ON BID-BID BASIS (%) 3mths 6 mths 1 year 3 years 3 years 5 years 5 years Since Inception Since Inception (annualised) (annualised) (annualised) Greatlink Enhancer Fund 4.64 17.17 26.09 102.87 26.61 71.18 11.34 63.79 5.23 Benchmark Index 2.44 12.51 23.26 112.14 28.49 96.54 14.47 39.91 3.53 NOTE: This factsheet is compiled by Great Eastern Life. The information presented is for informational use only. The performance of the Fund is not guaranteed and the value may increase or decrease in accordance with the future experience of the Fund. Past returns are not necessarily a guide to future performance.
GREATLINK ENHANCER FUND report as at 31 December 2005 2006. From the recent FOMC minutes, the likelihood of peaking of rates appears evident and we believe that this will be a catalyst for Asian markets to rally. China is one of our key overweight markets. The 11th Five Year Plan highlights the emphasis on boosting domestic consumption and developing the services sector. Although there are signs that exports and fixed assets investment are slowing, government’s initiatives to boost consumption and the continued urbanization of China will drive the economic growth going forward. Hence, we will continue to tilt the portfolio towards more consumption related plays such as property, banks and retail as well as energy/oil sectors. In contrast, we remain cautious on Hong Kong, on the back of weakening trade activity, as well as weak retail and property sales. Valuations are also uncompelling. Korea’s Kospi jumped a massive 54% in KRW terms in 2005 on the back of strong domestic liquidity due to rising popularity of monthly installment funds and steady money inflow into equity funds. We expect the strong liquidity flows to continue and this, with the recovery in the domestic economy and attractive valuation, forms the basis of our positive view on Korea. We are neutral on Taiwan despite the recent rally of Taiex since October, which was triggered by the earnings upgrade of technology companies. We believe that a major risk of the market remains in technology stocks, but the high dividend yield will lend support to the market. We are neutral on both Australia and India. The pipeline of capex in mining, oil and gas and infrastructure in Australia should continue to support the low unemployment rate and good wage growth. The majority of FY June 06 earnings appear to be lockedin; with the main contributors being materials and banks. We remain overweight in the Australian resources sector as China continues to be hungry for resources while the industrials sector looks interesting on the back of increased capex spending. We believe the next phase of growth in India is likely to come from urban consumption, infrastructure-related spending and cost arbitrage in manufacturing and services. With low retail participation in equity market, coupled with low bond yields, as well as strong growth potential among Indian corporates, the Indian story remains one of a shift in savings to equities by local investors plus foreign investors buying the Indian growth theme. That said, valuations of Indian market do not look cheap. In Singapore, we favour domestic-oriented stocks which have an attractive risk-reward profile with stable cashflow and high dividend yield. We also like the property sector, which could return to the limelight due to the integrated resorts bidding news flow and recovering physical market. REITs could see a tough start in 2006. Although the Malaysian market’s underperformance has pushed valuations to attractive levels, we believe that consensus 2006 earnings are still too optimistic and corporates in general lack pricing power. The GLC restructuring theme would continue to feature in terms of newsflow, but this is a long-term structural change story. We continue to underweight Malaysia. In the TIP markets, we prefer Thailand to Philippines and Indonesia due to improvements on the macroeconomic front for these economies. NOTE: This factsheet is compiled by Great Eastern Life. The information presented is for informational use only. The performance of the Fund is not guaranteed and the value may increase or decrease in accordance with the future experience of the Fund. Past returns are not necessarily a guide to future performance. 29
Page 1 and 2: MICA (P) 100/02/2006 Statement and
Page 3 and 4: CEO’S MESSAGE GreatLink Funds yie
Page 5 and 6: ANNOUNCEMENTS New CPF Admission Cri
Page 7 and 8: LEAD STORIES High Potential Investm
Page 9 and 10: LEAD STORIES On a quantitative basi
Page 11 and 12: GREATLINK LIFESTYLE PORTFOLIOS repo
Page 17 and 18: GREATLINK GLOBAL SUPREME FUND repor
Page 19 and 20: GREATLINK GLOBAL OPTIMUM FUND repor
Page 21 and 22: GREATLINK GLOBAL EQUITY FUND report
Page 23 and 24: GREATLINK GLOBAL VALUE EQUITY FUND
Page 25 and 26: GREATLINK GLOBAL GROWTH TRENDS PORT
Page 27 and 28: GREATLINK GLOBAL REAL ESTATE SECURI
Page 29: GREATLINK EUROPEAN EQUITY FUND repo
Page 33 and 34: GREATLINK ASEAN GROWTH FUND report
Page 35 and 36: GREATLINK SINGAPORE EQUITIES FUND r
Page 37 and 38: GREATLINK CASH FUND report as at 31
Page 39 and 40: GREATLINK GLOBAL BOND FUND report a
Page 41 and 42: GREATLINK CHOICE (SEP 2010) & (OCT
Page 43 and 44: GREATLINK CHOICE (SEP 2010) & (OCT
Page 45 and 46: PORTFOLIO STATEMENT as at 31 Decemb
Page 81 and 82:
PORTFOLIO STATEMENT as at 31 Decemb
Page 83 and 84:
PORTFOLIO STATEMENT as at 31 Decemb
Page 85 and 86:
SOFT DOLLAR COMMISSIONS as at 31 De
Page 87 and 88:
TOP 10 INVESTMENTS as at 31 Decembe
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
CAPITAL ACCOUNT for the period 01 J
Page 97 and 98:
STATEMENT OF ASSETS AND LIABILITIES
Page 99 and 100:
NOTES TO THE ACCOUNTS 2. Significan
Page 101 and 102:
NOTES TO THE ACCOUNTS Fair Value As
Page 103 and 104:
GREATLINK FUND SUMMARY Fund Name In
show all

Funds GreatLink - Great Eastern Life

Create successful ePaper yourself

Delete template?

Save as template?