Global markets end November with mixed showing

GLOBAL stock markets ended November with a mixed showing. The US and Japan powered ahead with returns of 2 and 3.3 per cent respectively, while the rest of the major regions lost ground. Fixed income markets reflected the general risk-off environment in November. The riskier segments of fixed income witnessed a pullback while the safer segments such as sovereign bonds posted gains.

For the month, the portfolio was essentially flat, trailing the simple benchmark's one per cent return. Our fixed income sleeve was in the red; none of the funds posted a positive return in November. For the equity sleeve, only our exposures to the US, Japan and Emerging Europe, Middle East and Africa posted positive results. The Legg Mason Clearbridge US Large Cap Growth and Neuberger Berman US Multicap Opportunity Fund returned 2.4 and 2.2 per cent, respectively. Aberdeen Japan rose 2.6 per cent and Fidelity Emerging Europe, Middle East and Africa generated largest positive return for the month at 2.9 per cent.

The worst performer for the month was one of our Asian equity funds; the First State Asian Growth Fund lost 2 per cent over the course of the month. (All returns are as of Nov 30, 2017 in S$ terms, except for global bonds in US$.)