Financial Reviews

"Retirement savings products turned in higher average gains in the fourth quarter of 2006, after strong growth in stock markets worldwide boosted the performance of investment funds. More than 90 per cent of unit trusts and investment-linked insurance products (ILPs) in the CPF Investment Scheme (CPFIS) saw positive absolute returns for the three months to December, according to the latest report by Standard & Poor's (S&P) Fund Services." - Stock advance lifts CPF savings products , 27 Feb 2007, Business Times Singapore It is heartening to read such news in the papers even though I do not invest my CPF monies via the CPFIS after I was not able to better the interest rates offered. Many people will be motivated by such news to actively look for investment products to beef up their retirement funds but past performance is not indicative of future performance and more likely than not, the easy money had already been made after the stock market run-up in recent month

Lion Capital Vietnam Fund will "invest in Authorised Investments which are equities, equity-related instruments (including, without limitation, interests in property funds) and securities in Vietnamese incorporated companies or institutions, as well as in companies or institutions which although not incorporated in Vietnam, have operations in, exposure to, or derive part of their revenue from Vietnam, and the Indo-China Region (which includes, but is not limited to, Cambodia, Laos and Myanmar)." Vietnam is presently experiencing a boom in its stock market and many people are getting excited about investing in Vietnam. However, such optimism is perhaps dangerous if our bets are not hedged. Vietnam's stock market is presently still very small and statistically, a small market is inherently volatile and gains in a few good stocks skew the investment numbers. Vietnam is very much just starting to develop and still largely lacks transparency, credible institutions, a functioni

SGAM Global Luxury & Lifestyle Fund is an interesting new product that has just caught my attention. Being the first of its kind open-ended equity fund for the Singapore retail market that invests in premium luxury and lifestyle companies on a global scale, it is unique in the concept. However, no matter how innovative an unit trust is, it is still necessary to evaluate if it is just hype or investing in it is truly a good option. The gap between the rich and the poor has been widening and the rich are getting much richer. This is evident in the emerging markets of China and India where the middle class is growing rapidly and high net worth individuals are also sky rocketing. Luxury goods are a favourite with those who are recently affluent, helping to reaffirm their successes, and impressive growth in sales for luxury goods have already been noted. SGAM Global Luxury & Lifestyle Fund further has the advantage that demand for luxury goods are usually price inelastic and profits

Fundsupermart has just recently launch a cash deposit fund by a Prudential Fund Manager. This Cash Fund operates by consolidating monies from investors and placing them in various fixed deposits with several banks. Through such an approach, the Cash Fund is able to obtain a higher net interest rate. The predecessor to the Cash Fund is the Cash Account and many people had asked if it is sensible to switch over to the Cash Fund which is promising higher returns. I believe that the Cash Fund is worth the efforts but it really depends on the person. Personally, I prefer to keep my existing Cash Account monies as they are and invest fresh funds into the Cash Fund. That way, I will still be able to enjoy the higher interest rates of an almost savings account equivalent and also to gain higher returns for the new injections that are going into the Cash Fund. For people like me who have been investing, the considerations to go for Cash Account or Cash Fund is largely due to personal situations