In Singapore, we aim to outperform the Straits Times index and MSCI Singapore Index through a proprietary selection of stocks we believe are higher quality and/or better valued than the market-cap weighting of the 30 stocks of the STI, and in most cases in Singapore we also try and avoid low-float companies. For the 12 months ending November 8th, 2016, our roughly equal-weighted portfolio of 20 round lots of our select Singapore companies outperformed the Straits Times index tracker fund (ES3) by about 16% with comparable volatility. It should be noted that this exceptional outperformance seems to have been do to abnormally good performance of names underweighted by the index but selected by our algorithm in late 2015, including the Ascendas India Trust (CY6U), Frasers Centrepoint Trust (J69U), Genting (G13) and Singapore Technologies (S63). We continue to believe the Singapore market is relatively inefficient and should continue to provide opportunities like this, but we are cautious not to expect similarly high outperformance in the future.
In client portfolios, we can usually replace positions of ES3 or EW3 with round lots of this select “GFM Singapore 20” or “GFM S20” portfolio in multiples of around S$20k / US$15k. Past performance is no indication of future results, and this post is not a solicitation or offer to buy or sell any investment product or service. GFM is a Hong Kong and US regulated firm not authorized by the MAS to manage assets for Singaporeans.
