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 Jun 2026
The month of Jun provided an important milestone in the Iran conflict. The agreement between the United States and Iran marked a significant step towards reducing geopolitical tension and reopening a clearer path for global energy flows
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MyNest US Fund Jun 26
June was another remarkable month in the evolution of the global capitalism and the artificial intelligence investment cycle.
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The SRS Fund May 2026
Korea, powered by the worldwide shortage and surge in memory demand, was hit directly by the AI wave, with its stock market more than doubling in a matter of 5 months. Taiwan, already the world’s most important advanced chip manufacturing hub has risen to become one of the largest stock market globally.
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MyNest US Fund May 26
May has been an incredibly illuminating month for the MyNest US Fund. Looking across the broader landscape, the S&P 500 Index has continued its steady leg up, gaining +5.15% in the month of May alone to push its Year-to-Date (YTD) gain to +10.73%.
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The SRS Fund Apr 2026
In my investment journey, there have been three occasions where I witnessed a company deliver a 10x return.
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MyNest US Fund Apr 26
The market rebounded strongly in April as investors appeared to look past geopolitical uncertainty and renewed their focus on earnings, artificial intelligence, and the long-term growth prospects of quality businesses.
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