Friday, December 15, 2017

Savinvest India Asia Fund top performer in 2012

This week we present a comparison of the 2012 performance of some of the major equity mutual funds and the monthly yields of income/money-market mutual funds sponsored by local institutions. In the equity mutual funds category the Savinvest India Asia Fund (SIAF) was the top performer ending the year up 20 per cent.

For the year 2012, the local market generated a lower return compared to the previous year as market valuations were on the multiyear highs. On the other hand, global equities experienced immense improvements when compared to 2011's performance. The World Index was up 13.2 per cent versus the negative 7.6 per cent in 2011. As a result, the majority of locally-sponsored mutual funds with investments in international securities benefitted from the rally.

In cases where returns inclusive of distributions/dividends were not obtained yields were calculated using published NAV figures for the year in review


TT$ Equity Mutual Funds

For the year 2012, the TT Composite Index (TTCI) saw a modest gain of 5.07 per cent. Regionally the Barbados equity market was fairly flat as the Barbados Composite Index was up 1.10 per cent. In the Jamaican market, the country's benchmark, the JSE Market Index ended the period down 3.9 per cent.

Results for the TT$ equity mutual funds examined at the end of 2012 were mainly positive. Table 1 outlines the returns on these funds as at the end of December 2012.

*-Inclusive of distribution payments or dividends

Source: Newspaper Publications

The Savinvest Capital Growth Fund (inclusive of distribution of income reinvested of $0.50) was the top performer with a return of 5.28 per cent followed by the Republic Caribbean Equity Fund (inclusive of dividends of $4.25) with a 4.19 per cent return.

Of the five income and growth funds surveyed for the year 2012, only one produced negative returns of 10.28 per cent. The FCB Immortelle Income & Growth Fund led the pack with a return of 8.79 per cent, the Roytrin TT$ Income & Growth Fund followed with a return of 6.03 per cent. GAM's Pan Caribbean Balanced Fund- Class A & B gained 5.73 per cent in the same period, whilst UTC's TT$ Income & Growth Fund came in at the lower end posting a return of 3.89 per cent.

US$ Equity Mutual Funds

For the year 2012, locally sponsored international funds performed well as international stock markets climbed. The Asian Pacific region saw most of the gains for 2012, whereas the emerging markets continued to rise, though at a slower pace.

Table 2 shows the performance of a variety of these mutual funds categorized by investment style and geographic focus.

Source: Newspaper Publications

The Savinvest India Asia Fund was the star performer in its class, gaining 20 per cent for the year. The Fund is positioned 60 per cent in India and 40 per cent in Asia and was able to benefit from positive returns in both markets. For the same period, GAM's Asia Pacific Rim Fund Class A & B returned 12.92 per cent whilst the UTC's Asia Pacific Fund gained 7.67 per cent.

European financial markets saw similar movements to the US market. GAM's European Equity Fund Class A & B produced returns for the year of 19.73 per cent whilst UTC's European Fund closed the year with a return of 9.14 per cent.

For the year 2012, the sole US$ income and growth fund, the Roytrin US$ Income and Growth Fund gained 3.39 per cent.

As US markets recovered, with the US S&P 500 gaining 13.41 per cent, the three locally sponsored North American Funds all had positive returns for the year. GAM's North American Equity Fund- Class A & B was up 11.78 per cent whilst the UTC North American Fund and the Savinvest US$ Capital Growth Fund (USCGF) ended the year at 5.71 per cent and 5.22 per cent respectively.

Latin American markets, as measured by the Latin America Index gained 5.43 per cent for the year as global economic prospects improve. UTC's Latin American Fund recorded a return of 3.14 per cent.

GAM's BRIC Equity Fund Class- A & B posted a return of 9.98 per cent for the year. In the category of Energy, UTC's Energy Fund felt the brunt of the volatile energy sector registering negative returns of 3.31 per cent.


Local interest rates have continued to decline as excess liquidity remains in the financial system. As at the end of December 2012, TT$ money-market and income mutual funds generated an average yield of 1.46 per cent.

*-Inclusive of distribution payments or dividends

Source: Newspaper Publications

TT$ Income/Money Market Mutual funds

Amongst the TT$ income/money market mutual funds the AIC TT$ Income Fund had a yield of 2.53 per cent (inclusive of indicative payout).

The Savinvest Structured Investment fund recorded a yield of 1.80 per cent trailed by Guardian Asset Management's (GAM) TT$ Monthly Income Fund with a yield of 1.75 per cent. First Citizens' (FCB) Abercrombie Fund, Unit Trust Corporation's (UTC) TT$ Income Fund and Republic Money Market Fund produced yields of 1.40 per cent, 1.33 per cent and 1.00 per cent respectively.

The Roytrin TT$ Income Fund, inclusive of distribution income of $0.07 had a return of 0.76 per cent.

US$ Income Mutual Funds

In attempt to support economic recovery the US interest rates continue to remain at a very low level with the average yield for the mutual funds surveyed at 1.33 per cent at the end of December 2012.

The Roytrin US$ Income Fund, inclusive of distribution income of $0.06 posted YTD returns of 3.97 per cent whilst the AIC US$ Income Fund had an actual payout of 2.27 per cent.

However, the AIC and Roytrin Funds (TT$ and US$) are floating-NAV funds as compared to the others which are fixed-NAV funds.

The Savinvest US$ Investment Income Fund offered investors a yield of 1.60 per cent while GAM's US$ Monthly Income Fund offered 1.50 per cent. On the lower end, the FCB Paria Fund and the UTC US$ Income Fund had yields of 1.20 per cent and 1.02 per cent respectively.