All info are as at 31 December 2015 unless otherwise stated.
FACTSHEET – December 2015
3 mth
6 mth
1 yr
3 yr
5 yr
10 yr
Since Inception
Manulife Golden
Balanced Growth
Fund (%)
1.37
-5.40
-4.41
2.05
2.58
4.66
5.53
Benchmark
60% MSCI Singapore Total +
40% Citigroup World
Government Bond Index ex
Japan
(Hedged to S$) (%)
2.50
-5.93
-6.16
1.66
2.56
4.76
5.01
Source: Legg Mason Asset Management Singapore Pte. Limited • Performance are bid-to-bid with income reinvested • Performance figures for 3 mth till 1 yr show the % change, those exceeding 1 yr show the average annual compounded return.
The CPF interest rate for the Ordinary Account (OA) is based on the 12-month fixed deposit and month-end savings rates of the major local banks. Under the CPF Act, the Board pays a minimum interest of 2.5% p.a. when this interest formula yields a lower rate. From 1 Jan 08, the new interest rate for the Special, Medisave & Retirement Accounts (SMRA) will be pegged to the yield of 10-year Singapore government bond plus 1%. For 2008 and 2009, the minimum interest rate for the
SMRA will be 4% p.a. After 2009, the 2.5% p.a. minimum interest rate, as prescribed by the CPF Act, will apply to
SMRA. In addition, from 1 Jan 08, the CPF Board will pay an extra interest of 1% per annum on the first $60,000 of a CPF member’s combined balances, including up to $20,000 in the OA. From 1 April 08, the first $20,000 in the Ordinary and
Special Accounts will not be allowed to be invested under the CPF Investment Scheme. And from 1 May 09, the first
$30,000 in the Special Account will not be allowed to be invested under the CPF Investment Scheme and further raised to
$40,000 from 1 July 2010.
The Golden Balanced Growth Fund feeds the Singapore equity portion into the Golden Singapore Growth Fund, managed by Schroder Investment Management (Singapore), and the global fixed income portion into the Golden International Bond
Fund, managed by Western Asset Management Company Pte Ltd, with effect from 3 January 2005. Western Asset
Management Company Pte Ltd has appointed Legg Mason Asset Management Singapore Pte. Limited as the Principal
Distributor.
Net Asset Value = S$222.43 million
Golden Singapore Growth Fund
Golden International Bond Fund
61%
39%
• Ongoing concerns over emerging market (EM) growth, particularly in China, along with weak commodity prices, poor year-end market liquidity and the first US Federal Reserve (Fed) rate increase in over 9 years unsettled global bond markets in December. Although the Fed’s 0.25% rate hike was largely anticipated, the US Treasury
(UST) yield curve continued to flatten as long bond yields rose by less than shorter-dated maturities. Monetary policy among the world’s major central banks diverged further as the European
Central Bank (ECB) cut the deposit rate another 0.1% to -0.3% and extended the asset purchase program into 2017. Despite the rate cut, eurozone yields rose as the additional policy easing was less than market expectations.
• Western Asset’s view remains that the global recovery, though fragile, will be ongoing. We believe policy accommodation from central banks around the world will continue to underpin growth given global inflationary pressures that remain very subdued. The decline in commodity prices should support global growth by increasing real consumer incomes and corporate earnings in the medium term. With debt levels elevated across the world’s major economies, downside growth and disinflationary risks persist.
• The Fed has started the process of monetary policy normalization, but we expect the pace of rate increases to be slow and gradual.
We anticipate that the Fed will to continue to hike rates in 2016, with at least one more increase at the March meeting, before reconsidering its strategy later in the year. Base effects will likely push inflation higher in the first half of the year, but as 2016 proceeds we think risks are tilted towards disappointment in the
Fed’s medium-term growth and inflation outlook. In the near term, we expect any upward pressure on UST yields will be felt most by the short-to-intermediate part of the yield curve. The benign inflation outlook with downside risks will likely limit the potential upside for longer-dated US bond yields. Overall, we expect global bond yields to remain in relatively narrow ranges in 2016, so tactical duration and yield curve management remain key macro strategies.
• In Europe, growth should continue to improve in 2016. The disinflationary bias of weak commodity prices could pose a risk to the recovery if consumers postpone purchases in anticipation of further price declines. Political developments could also undermine confidence with the ongoing migrant crisis and the recent trend among periphery countries to reject further fiscal austerity and reform. The ECB remains committed to an expansionary monetary policy and we believe this will continue to support a further narrowing of spreads between Italian government bonds and core markets.
• Our focus remains on longer-term fundamentals with diversified strategies to manage risk. Portfolios remain invested in the spread product sectors, taking advantage of attractive valuations, using macro strategies opportunistically as valuations change and to mitigate downside risks.
Launch Date
Bid Price
Offer Price
CPFIS Risk Classification:
Subscription :
Price published In
Min Investment
:
:
:
:
:
18 February 1997 Launch Price : S$1.00
S$2.6161
Management Fee : 1.20% p.a.
S$2.7538@ 5% sales charge (RP plans) / S$2.697 @ 3% sales charge (SP plans)
Medium to High Risk - Narrowly Focused
CPFIS-OA/SA/SRS/Cash
Bid-Offer Spread : 5% (RP)/3% (SP)
Dealing : Daily
The Straits Times, Business Times, Lianhe Zaobao, www.manulife.com.sg
S$5000 (single premium), S$100 (monthly premium), S$500 (top-up)
Important Information: This report is prepared by Manulife (Singapore) Pte Ltd and is provided for information purposes only.
Past performance is not necessarily a guide to future performance.
Manulife (Singapore) Pte. Ltd. A Manulife Company. Reg. No. 198002116D
51 Bras Basah Road #09-00 Manulife Centre, Singapore 189554 Tel: 6737 1221 Fax: 6737 8488 Website: www.manulife.com.sg