The SRS Fund Dec 2024 Update

Year in Review

The SRS Fund had its best return in a year since its inception in 2024.  SRS Fund value was up 19.4%, excluding new contributions.  However, the SRS Fund underperformed its benchmark STI index which drums up a whopping 22% (Dividend included).

The long-term aim of the SRS Fund remains to outperform its benchmark, thus keeping up with the STI in a bull market goes a long way in doing so. I would also expect the SRS Fund to outperform, especially during years of bear market

Looking at performance over a 5 year period, the SRS Fund outperformed the STI index with a CAGR return of 9.36% versus the benchmark of 6.76%. I believe the outperform will continue as the portfolio companies, in aggregate are superior to those in the index.

Portfolio Segments

Finance remained the most heavily weighted segment as the local economy is geared towards financial services. While the SRS Fund has divested significantly into other sectors, the gain in the finance sector is the main reason the sector remains heavily overweighted in the SRS Fund.

Dividends

Dividends collected for the year hit another record high of $18,753.86. This is coupled with a capital gain of more than $40,000. The result of a portfolio should always be viewed in its totality as a focus on dividend return without consideration for capital gain is meaningless.

SRS Fund Value

With the year-end injection of another round of full contributions of $15,300. The SRS Fund ended the year with a record $470,063.83. While the half-a-million mark is within reach, there is no hard target of how much value the SRS Fund should be worth in X number of years. Market valuation will fluctuate, and the fund value should only be use as a guide on how well the fund is doing over a period of time instead of a point in time.

Cash Levels

The cash level increased to 4% with the latest contribution and is nicely positioned to be invested if more opportunities arise.

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