The Higher for Longer Theme
Into the 2nd quarter of the year, the market realised that inflation may not be falling after all. The stock market for one is heating up as earnings from major corporations over the world showed strong growth.
April was also a month full of annual general meetings. I have personally attended meetings of DBS, UOB, Capland India and HR Net. My main takeaway from these meetings is that the Singapore economy together with regional South East Asia will be a bright spot for the year.
With higher interest rates for longer, the local banks are benefitting from high net interest margins as well as non-interest income. The rise in the valuation of the local banks enables them to constitute almost half of the Straits Times Index
With such a huge weighting on the STI, it will likely be much more difficult for the SRS Fund to outperform as it begins to underweight the 3 local banks on a relative basis.
The SRS Fund ended Apr at its all-time high up 0.35% YTD as dividends from investees began their contributions. Strong performance by the 3 local banks also contributed, taking the SRS Fund into positive territory for the year.
Portfolio Segments
Finance will likely continue to play an important driver of the SRS Funds with Singapore being at the heart of the emerging Southeast Asia economy. I will continue to look for more diversification opportunities as the SRS Fund evolve into an all-weather Fund.
Dividends
Dividends continue to trickle in for April with $1080.00. The SRS Fund would expect the record dividend to be received in May as companies approve them during their AGMs.
SRS Fund Value
The SRS Fund hit a historical high of $382,183.32 and is expected to continue its upward trajectory given the heating stock market in May.
Cash Levels
The cash level is expected to increase as dividends begin to contribute in May. Cash level may also see a spike if the Fund can continue divesting its REITs holdings.
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The SRS Fund Dec 2025
If someone had told me at the start of the year that the Singapore stock market would deliver returns in excess of 20%, I would have shrugged it off as wishful thinking.
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MyNest US Fund Dec 25
MyNest US Fund rounded the first year of inception with a slight outperformance to our benchmark the S&P 500. The first year of operation tested to resolve in knowing what we own as we navigated volatility which started on Trump’s Liberation Day.
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The SRS Fund Nov 2025
If you’ve been watching the Singapore market this past month, the narrative has been impossible to ignore: it is a tale of three banks, and unfortunately for UOB, it has found itself lagging its peers.
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MyNest US Fund Nov 25
November tested the patience of the broader market, defined by a distinct shift in sentiment regarding Artificial Intelligence. The narrative of an “AI Bubble” finally took hold,
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The SRS Fund Oct 2025
Many of us in Singapore watch in dismay as interest rates from T-bills, fixed deposits and high-yield bank accounts plummet to new lows in recent months. Three months Sora now stands at 1.29%.
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MyNest US Fund Oct 25
October is usually the worst month of the year for stocks but somehow this year the stock market failed to provide any opportunities for us to deploy meaningful cash to work.
MYNEST.SG 