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Funds Promotion: Time for some US in your portfolio January 30, 2012
Author : Fundsupermart.com


Let us explain why it makes sense to have a US fund booster in your portfolio:

1. US companies are expected to grow their earnings

Earnings growth for the S&P 500 companies is expected to be 12.3% and 9.1% in 2012 and 2013 respectively (based on consensus estimates as of 27 January 2012). We expect the much-maligned US property sector to rebound strongly and potentially double US GDP growth, boosting the earnings growth of related sectors further.

2. US companies are cheap

The US market has a historical price earnings (PE) valuation of 15X and based on the earnings growth estimates mentioned above, the forward PE ratios stand at 11.2X and 10.3X for 2012 and 2013 respectively (as of 27 January 2012). This translates to a very attractive discount!

*Based on the current PE estimate of 12.2X consensus earnings for 2012, if the market is to revert back to our 15X historical PE, this implies an upside of 23% this year (data as of 27 January 2012).

3. US companies sell to the world

The US companies do not rely on their domestic market only. For some companies in the S&P 500, sales from outside the US stand at 46% in 2010, and for some sectors such as Information Technology, the number goes up to as high as 56% (Source: S&P Indices).

4. Diversification from other regions

If your portfolio is too concentrated in other regional funds, the US will add a welcome diversification booster. For investors in Singapore, we may tend to have a higher weightage in Asian funds due to our familiarity with the region's growth story, but it is always wise to diversify across regional markets which are not so correlated. In SGD terms, the US market was one of only two markets under our coverage to deliver positive returns in 2011.

We are offering a 50% discount on the sales charge for the following US equity funds, from 1 to 29 February 2012.

 

EQUITY

CPFIS-OA

CPFIS-SA

SRS

FSM Risk Rating

Minimum
Initial Investment

Promotional
Sales Charge

Buy

FIDELITY AMERICA USD

Yes

No

Yes

8-High Risk
1,000
0.5%
ss
FIDELITY AMERICA A-SGD

Yes

No

Yes

8-High Risk
1,000
0.5%
ss
BNPPL1 OPPORTUNITIES USA USD

No

No

No

8-High Risk
500
0.5%
ss
LEGG MASON ROYCE US SM CAP OPP A USD

No

No

No

10-Highest Risk
2,000
0.5%
ss

 

Terms and Conditions

1. The promotion is valid from 1 February to 29 February 2012. To be eligible for the promotion, orders must be placed before 3pm on 29 February 2012.
2. All cash payments (Cheque and Internet payments) must reach us by 3pm on 7 March 2012. Pending cheque trades will automatically be voided after this date.
3. This promotion does not apply to transactions involving Intra Switch Buy, Regular Savings Plan (RSP) and Transfer-ins.
4. Gold/Silver account holders are eligible for the promotional sales charges or the sales charge under FSM Rewards Programme, whichever is lower.
5. Fundsupermart.com reserves the right to amend the Terms and Conditions without prior notification.

RELATED ARTICLES:

Equity Market Review 2011: Only 2 Countries Survived The Drop!
How This Overlooked Sector Can Double US GDP Growth (Part 1)
How This Overlooked Sector Can Double US GDP Growth (Part 2)
A Bond-Beating Formula: Earnings Growth + Dividends + Valuation Expansion
What The Worst-Performing US Equity Fund of 2011 Has In Common With Warren Buffett
Recommended Fund Review: Three Reasons To Keep This Fund On Your Radar

 


Disclaimer:
This advertisement is not to be construed as an offer or solicitation for the subscription, purchase or sale of any fund. An investment in the fund(s) is subject to investment risks, including the possible loss of the principal amount invested. No investment decision should be taken without first viewing a fund's prospectus, which is available from the fund manager or www.fundsupermart.com. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. The value of units and the income from them may fall as well as rise. Past performance and any forecast is not necessarily indicative of the future or likely performance of the fund. Investors may wish to seek advice from a financial adviser before making a commitment to invest in units of a fund. In the event an investor chooses not to seek advice from a financial adviser, he/she should consider whether the fund is suitable for him/her..