The Straits Times Index (STI) was flat since our previous August update. Renewed worries about steep rate hikes countered the better-than-expected 2Q earnings season.
We initiated a position in UMS Holdings on the back of a strong earnings revision following its strong 2Q performance. The potential reinstatement of pioneer tax status in Malaysia was also a near-term catalyst for this stock – which actualised in mid-September.
We took some profits on names that had performed strongly since their respective inclusions. We top-sliced our tech exposures to UMS Holdings and Venture Corp due to renewed rate hike concerns after the Jackson Hole meeting in late August. Raffles Medical was also removed due to limited near-term upside, having registered an impressive 16.7% gain since 2 August.
Knowing when to limit losses when things go against us is as important as picking the right stock. This was put into practice when we removed Nanofilm Technologies on 16 Sep, barely three days after its inclusion.
Singapore Equity Picks continue to outperform the benchmark, although performance slipped slightly over this review period with a TWRR since inception of 132.4% (prev. 134.9%). Annualised return since inception stands at 14.68%.
We look to be selective about the names we pick and seek opportunities when they arise, to guard our outperformance versus the broader market.