Tag Archives: low risk funds singapore

Low Risk Funds holding good in a falling bond market

 

Time flies and it’s over 10 months since we talked about the Low risk funds in Singapore – Good returns with Low Risk Funds. A lot has happened in the market since then with the talks of Fed tapering QE being the biggest news causing sell off in the Emerging Markets and Bonds.

However the funds that I talked about earlier in the year have been holding well with the exception of the Lion Global Singapore Fixed Income A fund.

Fund Returns

The fund has slipped in red for the 10 month period. The NAV has dropped by 1.49% but has paid off equivalent amount in interest/ dividends and is net flat.

The United SGD fund has been doing very well and is up 3.25% year to date, Fullerton and Nikko follow closely behind. In the coming year this strategy might still work as Singapore Dollar remains stable. I will be looking to re-balance my portfolio soon and will share some new ideas shortly.

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Over 5% annualised return with Low Risk Funds in 3 months

Close to 3 months since I first talked about the Low Risk funds that are liquid and generate good returns in my post – Good returns and Low Risks with Funds that Invest in Singapore Bonds and its great to see that 2 funds have generated over 5% annualised returns in 90 days.

United SGD Fund and Fullerton Short Term Int Rt have gained 1.44% and 1.18% in this period clocking annualised gains of over 6% and 5% annually.

Fund Performance 3 months

My personal favourite Nikko AM has lagged behind at 2.64% annualised but still much better returns than a bank deposit, Though I must say that mid way I did re-allocate some money to United SGD and Fullerton Funds when the SGD crossed the 1.25 mark against the USD.

I have noticed that these funds generate better returns when SGD is strengthening. Looking at the returns in past 3 months I am going to re-balance my portfolio and move some money from US Equities to these funds before the “Sell in May, Go away” phenomenon hits the wall street. Till then enjoy the gains 🙂