Outlook for bonds, stocks in 2017

THE month of October was characterised by choppy markets, with both stocks and bond markets witnessing declines in prices. Global equities, as measured by the MSCI AC World index posted a -1.5 per cent decline, while global bonds saw yields rise and lost -0.2 per cent. (Bond prices are inversely related to bond yields.)

The portfolio fared slightly worse than a 70 per cent equities / 30 per cent bonds composite that would have slid -1.1 per cent; with a loss of -1.7 per cent for October and most of its holdings losing ground as of Nov 6, 2016. Part of the underperformance of the portfolio can be attributed to the 0.35 per cent sales charge that fundsupermart.com has for equity funds, which the portfolio has allocated 70 per cent to.

Of the few funds that managed to deliver positive returns, Aberdeen Japan Equity posted the strongest returns of 1.4 per cent, boosted by the appreciation of the Japanese yen against the Singapore dollar over the course of the month.