STI benchmark will be hard to beat
The three major banks now made 43.6% of the SRS Funds. This is very similar to their weighting in the benchmark Straits Times Index. Hence having almost 50% of the SRS Fund being identical to the benchmark any outperformance will be very difficult.
Apart from the banking sector, there are 6 more companies that are also part of the STI index. This means any outperformance will have to come from China-related holdings. There will also be some drag created from the minor cash holding.
The SRS Fund ended half year Jun up 2.56% versus STI 3.68%. The underperformance is due to some strong showing from STI components companies which the SRS Fund does not own. Nevertheless, I believe the SRS Fund will outperform the STI over the long term owning to better basic fundamentals of the underlying businesses.
Portfolio Segments
While the SRS Fund does not intend to mimic the benchmark, it has reached a point that the 3 local banks’ weighting is now a mirror image of the index. However, going forward, I foresee further investments outside of the index component, allowing room for outperforming the benchmark.
Dividends
Despite the huge reduction in REITs holding in the SRS Fund, dividends continue to surpass YoY in Q2. 1st half dividend also made a record high YoY. With a strong economic tailwind especially in South East Asia, substantial dividends growth will be expected in the 3-5 year time frame.
SRS Fund Value
The SRS Fund value came down slightly in Jun but we should not be too concerned about the month-to-month volatility. More attention should be paid to how the business fundamentals have improved over time.
Cash Levels
The cash level remain low as we continue to put cash to work with several opportunities to buy more of the current holdings the SRS Fund owns.
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The SRS Fund Mar 2026
It is an enduring market reality that a concentrated minority of holdings drives the vast majority of returns. For years, DBS (currently the largest individual holding at 20.6%) has served as the compounding engine of the SRS Fund.
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MyNest US Fund Mar 26
March shattered any lingering market complacency, pivoting sharply from the localized damage of the “SaaS-pocalypse” to a systemic shock driven by the war in Iran.
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The SRS Fund Feb 2026
The Singapore Budget 2026 has set a robust backdrop for local investors. For the third consecutive year, the government is operating from a position of immense “dry powder,” with an overall fiscal surplus of $8.5 billion projected for FY2026.
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MyNest US Fund Feb 26
February 2026 proved to be one of the most challenging months for our fund since its inception. A wave of “AI anxiety” swept through the Software-as-a-Service (SaaS) sector
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The SRS Fund Jan 2026
After a blockbuster 2025 that saw GDP growth hit a surprise 4.8%, the first month of 2026 has proven that the momentum is far from a fluke. Between record-breaking stock market performance and massive industrial investments, the “Little Red Dot” is making a very big noise.
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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 