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In this new year, I will be starting a new blog segment – AIA Investment-Linked Fund Performance Update. For the most part, regular updates allows us to keep our investment portfolio in check. Accordingly, we will be able to make adjustments to our portfolio whenever necessary. With this in mind, I will share insights on the fund performance for AIA Singapore investment-linked funds.

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Disclaimer:

  1. Posted data is for informational purposes only.
  2. Readers are advised to read the respective product summary for full disclaimer and/or seek professional advice.
  3. Data is extracted as at 3 January 2020.

Now let’s find out the top three funds for the year 2019 (based on 1 Year Return).

1-Year Investment-Linked Fund Performance: Top 3 Investment-Linked Funds
1-Year Investment-Linked Fund Performance: Top 3 Investment-Linked Funds

AIA Global Technology Fund

1 Year Return: 44.18%

3 Years Annualised: 21.74%

5 Years Annualised: 18.08%

10 Years Annualised: 15.46%

Generally, the positivity surrounding the US-China trade talks and Brexit negotiations contributed to the growth in the global markets. As a result, information technology continued to spearhead the market.

AIA Global Property Returns Fund

1 Year Return: 31.19%

3 Years Annualised: 12.84%

5 Years Annualised: 9.53%

10 Years Annualised: NA

On the whole, US REITs, property stocks in Europe and Asia Pacific have outperformed the fund’s benchmark. Chiefly, this is on the back of various merger and acquisition activity. While the underlying fundamentals for the listed property sector remains robust, both cyclical and structural forces may spread the returns at a property level.

AIA Greater China Equity Fund 

1 Year Return: 31.16%

3 Years Annualised: 9.69%

5 Years Annualised: 8.93%

10 Years Annualised: 6.31%

In like manner, US-China trade talks improved sentiments towards China equities. Undeniably, as technology advancement continues, these sectors are expected to witness solid growth. For the same reason that contributed to its growth, let’s hope that the US-China tension will ease soon.

In contrast, here are the funds that showed lacklustre performance in 2019.

1-Year Investment-Linked Fund Performance: Bottom 3 Investment-Linked Funds
1-Year Investment-Linked Fund Performance: Bottom 3 Investment-Linked Funds

AIA India Opportunities Fund

1 Year Return: 5.43%

3 Years Annualised: 8.25%

5 Years Annualised: 5.31%

10 Years Annualised: 7.45%

Evidently, the growth in the market was hindered by the Supreme Court’s decision in the dispute over the calculation of the airwave fees owed to the government. As a result, investors’ fear lingered in the market.

AIA India Equity Fund

1 Year Return: 2.45%

3 Years Annualised: 3.9%

5 Years Annualised: 5.13%

10 Years Annualised: 6.43%

AIA S$ Money Market Fund

1 Year Return: 1.56%

3 Years Annualised: 1.21%

5 Years Annualised: 0.99%

10 Years Annualised: 0.55%

With lower global and US yields, Singapore yields decreased accordingly. Looking ahead, the market will have to wait for the outcome of the US-China trade deal and Brexit negotiations to determine its direction.

Summary

In summary, 2019 felt like an amazing year for investment with double digit growth. However, it must be impressed upon that investment yields only non-guaranteed return. With this in mind, create a well-diversified portfolio that is capable to withstand market volatility. Furthermore, adopt various investment strategies like dollar cost averaging to reduce the price risk. All things considered, know your investment objectives and risk appetite to help you make decisions that you will be confident with.

Reference for this article has been made with the following sources:

Morningstar Asia Ltd

AIA ILP Fund Factsheet

  • Global Technology Fund (December 2019)
  • Global Property Returns Fund (December 2019)
  • Greater China Equity Fund (December 2019)
  • India Opportunities Fund (December 2019)
  • India Equity Fund (December 2019)
  • S$ Money Market Fund (November 2019)

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