The Edge-Lipper Singapore Awards 2004 24.02.05
Lipper A Reuters Company Robin Thurston Vice President Global Director of Research, Media, and Marketing
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Lipper Research 2004 Review
Common Global Themes Standardization Is Other better? Flows and Asset trends Shift away from $-denominated assets Smaller Cap funds vs. Larger Cap funds Value funds vs. Growth funds
Shift away from $-denominated assets % Change vs USD in 2004 20 15 10 5 0 South Korean Won Swiss Franc Euro UK Pound Sterling Taiwan Dollar Indian Rupee Japanese Yen Singapore Dollar Thai Baht Malaysian Ringgit Indonesia Rupiah -5-10 -15
How Did 2003 Performers Do In 2004? Lipper Global Fund Classifications Equity Thailand -0.7% 27.6% 137.0% -39.3% Equity Brazil 29.4% 109.4% Equity India 16.7% 27.9% 106.6% Equity Indian Sub-Continent 5.7% 30.3% 87.8% Equity German Sm&Mid Cap -24.8% 21.4% 85.2% Equity Indonesia 38.5% 36.6% 75.5% Equity Russia 30.0% 21.5% 69.4% Equity Asia Pacific Sm&Mid Cap 0.5% 12.2% 67.0% Equity Emerging Mkts Latin Am Equity Greater China -21.7% -9.2% 7.6% 36.3% 66.8% 66.3% 12/31/2002 12/31/2003 12/31/2004-50.0% 0.0% 50.0% 100.0% 150.0% 200.0% Return
2004 Performers Lipper Global Fund Classifications Equity Austria Equity Belgium 12/31/2002 12/31/2003 12/31/2004-7.3% 10.4% 45.6% 46.4% 59.4% 62.7% Equity Sector Real Est Europe 24.5% 45.3% 45.9% Equity Emerging Mkts Europe 22.8% 42.2% 60.1% Equity Emerging Mkts Other 6.9% 49.4% 41.5% Equity Indonesia 38.5% 36.6% 75.5% Equity Emerging Mkts Latin Am -21.7% 36.3% 66.8% Equity Sector Real Est Global 13.7% 39.3% 35.6% Equity Japan Sm&Mid Cap -12.9% 31.0% 61.8% Equity Indian Sub-Continent 5.7% 30.3% 87.8% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Return
United States ETFs attracting record flows Trends in expenses Flows trends Fund launches focus on conservative choices Regulation
Fund Performance in 2004 Lipper Equity Investment Classification Performance in 2004 US DIVERSIFIED EQUITY Small-Cap Value Funds Mid-Cap Value Funds Small-Cap Core Funds Mid-Cap Core Funds Multi-Cap Value Funds Equity Income Funds Mid-Cap Growth Funds Large-Cap Value Funds Multi-Cap Core Funds Multi-Cap Growth Funds Small-Cap Growth Funds S&P 500 Index Objective Funds Large-Cap Core Funds Large-Cap Growth Funds Specialty Diversified Equity Funds Lipper Classification/Investment Objective SECTOR EQUITY Real Estate Funds Natural Resources Funds Utility Funds Telecommunication Funds Specialty/Miscellaneous Funds Financial Services Funds Health/Biotechnology Funds Science & Technology Funds WORLD EQUITY Latin American Funds Emerging Markets Funds European Region Funds Pacific Ex-Japan Funds Pacific Region Funds Japanese Funds China Region Funds Gold Oriented Funds Latin America 38% MIXED EQUITY Global Flexible Portfolio Funds Flexible Portfolio Funds Convertible Securities Funds Income Funds Balanced Funds Balanced Target Maturity Funds -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 2004 Return
How did last year s best performers do in 2004? Lipper Fund Classifications China Region Funds Latin American Funds 12/31/2002 12/31/2003 12/31/2004-14.7% -20.5% 9.3% 38.4% 63.2% 62.8% Gold Oriented Funds -8.3% 63.0% 58.3% International Small/Mid-Cap Value -2.5% 23.2% 56.6% Science & Technology Funds -42.2% 4.1% 56.5% Emerging Markets Funds -5.1% 24.1% 55.5% International Small/Mid-Cap Growth -13.3% 24.7% 55.1% International Small/Mid-Cap Core -5.6% 25.4% 49.2% Global Small/Mid-Cap Growth -23.9% 19.8% 48.0% Pacific Ex Japan Funds -6.9% 16.5% 46.1% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% Return
2004 Rankings of last year s winners 49 Total Classifications Classification Ranking and Fund Count Changes 2002 Count Change 2003 Count Change 2004 Count Change 2001 Count 2002 Rank 2003 Rank 2004 Rank China Region Funds 24 20 0 1 2 43 8 Latin American Funds 41 36-8 2-7 1-6 Gold Oriented Funds 39 1 7 3 3 49 2 International Small/Mid-Cap Value 9 4 1 4-2 8 3 Science & Technology Funds 454 49-56 5-69 47-14 Emerging Markets Funds 222 5-6 6-30 6 3 International Small/Mid-Cap Growth 62 15 6 7 7 5 0 International Small/Mid-Cap Core 34 6 7 8 7 4 0 Global Small/Mid-Cap Growth 27 42 13 9 0 14 0 Pacific Ex Japan Funds 78 8-3 10-15 22-3
How did last year s top bond funds do vs. 2003? Lipper Classification/Investment Objective Emerging Markets Debt Funds 12.3% 30.3% High Current Yield Funds 9.9% 24.4% Multi-Sector Income Funds 8.4% 16.5% International Income Funds 10.5% 16.0% Global Income Funds 8.6% 13.8% Corporate Debt Funds BBB-Rated 5.1% 8.9% Treasury Inflation Protected Securities 7.8% 7.7% General Bond Funds 4.3% 7.1% Loan Participation Funds 3.8% 6.6% 2004 2003 Flexible Income Funds 2.2% 5.2% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Return
US Fund Expenses 2003 vs. 2004 Category Asset Weighted Total Expense Ratio (2003) Basis Point Change Asset Weighted Total Expense Ratio (2004) All Funds.777% -0.3bp.774% World Equity Funds 1.861% -4.6bp 1.815% Sector Equity Funds 1.876% -3.8bp 1.838%
United States-Launches, Mergers, and Liquidations Open-End Classes of Shares, 2004* New Funds Mergers Liquidations Net Total Equities 684 324 234 126 Fixed Income 154 95 47 12 Money Markets 32 21 37-26 870 440 318 112 Source: Lipper *From January 1, 2004 to December 14, 2004
United States- Flows and Assets Assets (In $Billion) As Of December 2004 Asset Class Inflows / Outflows Assets 1 Year 3 Years Current 1 Year Ago 3 Years Ago Bond -19.3 101.4 1,184.6 1,152.0 867.0 Equity/Mixed Equity 240.5 294.9 4,551.7 3,762.8 3,315.1 Money Market -162.8-455.6 1,834.8 1,971.9 2,193.6 Total 58.4-59.3 7,571.1 6,886.7 6,375.7 Source: Lipper
Singapore - Overview An international fund management hub and wealth management centre Increase in offshore investment funds being registered for sale, while Singapore-domiciled unit trusts see consolidation Standardization of regulations, investor education and offering value to investors are seen as critical success factors for industry
Singapore Growth of Singapore-domiciled funds 450 25 400 No of CIS Funds AUM 382 401 381 350 319 19.2 19.8 20 300 250 265 14.1 15 200 150 127 187 10.5 10 100 101 6.8 7.8 5 50 0 3.3 3.2 1997 1998 1999 2000 2001 2002 2003 2004 Source: Monetary Authority of Singapore / Lipper (2004) 0
Singapore Fund Expense Ratios 3.00% 2.70% 2.50% 2.00% 2.07% 1.98% 1.50% 1.34% 1.00% 1.07% 0.50% 0.43% 0.00% Bond Equity Source: Lipper / Fitzrovia (based on latest reported data @ end Dec 2004) Guaranteed / Protected Hedge Mixed Asset Money Market
Singapore Launches and Liquidations Classes of Shares, 2004 Equities Fixed-Income Guaranteed/Protected Hedge Mixed-Asset Money-Market New Funds 16 2 11 1 1 1 32 Liquidations 12 2 0 0 2 2 18 Source: Lipper
General Information The Global Themes Study and all Research Can Be Downloaded at: Lipperweb.com or Reuters.com All Fund Award Information Can Be Found at: Lipperweb.com
The Edge-Lipper Singapore Fund Awards 2004 Funds registered for sale in Singapore as of 31st December 2004 At least 36 months of performance history as of 31st December 2004 (for the One-Year Awards, 12 months of performance history as of 31st December 2004 is needed.) Lipper Global classifications with at least five distinct portfolios, excluding residual classifications and institutional funds Asset classes: equity, bond, and mixed-asset
The Edge-Lipper Singapore Fund Awards 2004 Classification Awards Based on monthly data For 1-year awards, the highest total return within the Lipper defined sector determines the winner in the category. The winning fund must have a positive performance result covering assessment period For 3-year and 5-year awards, the highest Lipper Leader for Consistent Return value determines the fund classification winner over 3 or 5 years The 1-year awards are calculated on both a local currency and a Singapore Dollar basis. The 3-year and 5-year awards are calculated in Singapore dollar basis.
The Edge-Lipper Fund Awards Group Awards Fund groups with at least 3 distinct portfolios in one of the asset classes Equity, Bond or Mixed-Asset The lowest decile rank of the 3-years Consistent Return measure of the eligible funds per asset class and group will determine the asset class group award winner
The Edge-Lipper Fund Awards Group Awards Overall Group Award Fund groups with at least 3 distinct portfolios in Equity, Bond and Mixed-Asset Funds are eligible for the Best Overall Group award Best overall group will be given to the group with lowest average decile ranking of its respective asset class results
The Edge-Lipper Singapore Fund Awards Awards & Certificates All winning funds and groups will be awarded a certificate Funds or fund companies that have been awarded a Lipper Fund Award are authorized to use the Lipper Fund Awards Logo Singapore 2005 in their marketing or advertising materials
Lipper A Reuters Company Classification Awards
Best Fund over Three Years Bond Europe dit-europazins Bond Global Shenton Income SGD Equity Asia Pacific Ex Japan OCBC South East Asia SGD Equity Emerging Markets Global FTF-Emerging Markets A
Best Fund over Three Years Equity Euro Zone Schroder ISF EURO Equity A Acc Equity Europe Fidelity Funds European Growth Fund Equity Global Phillip Growth Equity Greater China HSBC GIF Chinese Equity AD
Best Fund over Three Years Equity Japan OCBC Japan Growth SGD Equity North America Fidelity Funds America Fund
Lipper A Reuters Company Classification Certificates
Best Fund over Three Years Bond Asia Pacific Schroder ISF Asian Bond A Acc Bond Emerging Markets Global ING (L) Renta Fund Emerging Mkts Debt (HC) Cap Bond Singapore Dollar OCBC Singapore Fixed Income Investment A Equity Asia Pacific Phillip Asia Pacific Growth
Best Fund over Three Years Equity Europe ex UK INVESCO European Equity Core A Equity Malaysia and Singapore OCBC Singapore/Malaysia SGD Equity Sector Banks and Other Financials United Global Capital Fund Equity Sector Information Technology United EuroTech Fund
Best Fund over Three Years Equity Sector Pharmaceuticals and Health Care United Global Healthcare Fund Equity Singapore Shenton Thrift Equity UK INVESCO UK Equity A
Best Fund over Three Years Mixed Asset EUR Balanced - Europe Fidelity Funds Euro Balanced Fund Mixed Asset SGD Balanced AIG Intl Funds Acorns of Asia Balanced
Best Fund over One, Five and Ten Years Classification Certificates over one, five and ten years: www.lipperweb.com
Lipper A Reuters Company Group Awards
Asset Class Group Awards Best Bond Group HSBC Asset Management Best Equity Group Phillip Capital Management