STI Tracker Fund

I just read the report of the STI Tracker Fund, managed by StateStreets. I am quite impressed with their results.

The fund started in April 2002. During the past 50 months, it earned an average annual return of 11.6%, compared to a benchmark return of 7.9%.

During the latest 12 months to 30 June 2006, it earned 13.4%, compared to the benchmark of 10.1%. I have since checked with StateStreet. They confirmed that the ST Index does not include dividend.

So, the better performance of the fund is largely due to the dividend, which is close to 3% per annum. After taking this into account, the return from the ST Tracker Fund is almost the same as the market. The annual cost of this fund is only 0.3%.

I had invested in the STI Tracker Fund previously. It earned a magnificent return. I realised my investment, as the market is too high. I shall wait for another time to re-invest in this fund.