The Tales of 2 Indexes
The S&P 500 surged to a record high in Jan erasing the loss incurred from the fastest rate hike in recent history. The strong showing suggests the US economy remains strong and resilient despite the high-interest rate environment and geopolitical tensions.
Another index the CSI 300 made new lows since 2019 as China’s economy continued to stumble due to its real estate crisis. Falling real estate prices are starting to impact asset quality at banks where there is fear of contagion spreading to the financial sector.
Investors invested in the different countries obviously face different fortunes in terms of returns as each market takes its natural course.
The SRS Fund ended Jan down 3.86% as the Singapore market in general receded from its year-end high. Companies related to the China economy continued their downward trend and remained a drag to the SRS Fund performance.
Overall the SRS Fund underperform the STI Index by 2% for Jan. The first month of the year is non-eventful for Singapore-listed companies as the earnings season only kicks into full swing in February.
Keppel REIT and Mapletree PanAsia Commerical Trust reported inline results with DPU falling slightly due to higher interest and operational costs. I continue to see weakness in REITs despite lower interest rate expectations as the Sea Change from the ultra-low interest rate era will continue to impact REITs in the multi-year adjustment to normalise interest rates.
There were no buy or sell activities as I await more earnings reports to digest the quality of companies in the portfolio before deciding to make any changes.
Portfolio Segments
Segments in the SRS Fund remain stable with the finance sector making the bulk of it. I envision the reliance on the finance and property sector will continue to shrink in 2024 as more investments are made to divest into other sectors to make the fund more resilient.
Dividends
No dividend was collected in Jan but the total dividend expected for 2024 will likely continue to exceed the SRS Fund contribution limits as the snowball continues compounding.
SRS Fund Value
The SRS Fund retreated slightly to $366,121.81 in the absence of dividend and market weaknesses.
Cash Levels
The cash level remains low at 3.1% with the likelihood of rising due to dividends from portfolio companies in Q1
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The SRS Fund Mar 2026
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MyNest US Fund Mar 26
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The SRS Fund Feb 2026
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MyNest US Fund Feb 26
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The SRS Fund Jan 2026
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MyNest US Fund Jan 26
I have a confession to make. After reading Chip War at the end of 2022, I fully grasped the strategic importance of TSMC and ASML in the global semiconductor supply chain.
MYNEST.SG 