SOURCE: The Singapore Fund, Inc.

The Singapore Fund, Inc.

June 24, 2011 10:27 ET

The Singapore Fund Announces Second Quarter Earnings

JERSEY CITY, NJ--(Marketwire - Jun 24, 2011) - The Singapore Fund, Inc. (NYSE: SGF), an emerging markets closed-end management investment company seeking long-term capital appreciation through investment primarily in Singapore equity securities, today announced its performance results for the three months ended April 30, 2011, the second quarter of its 2011 fiscal year.

For the quarter ended April 30, 2011, the Fund earned net investment income of approximately U.S. $443,000 (equivalent to income of U.S. $0.04 per share) resulting in net investment income for the six-month period of approximately U.S. $212,000 (equivalent to income of U.S. $0.02 per share). In addition, net realized and unrealized gains from investment activities and foreign currency transactions during that same three-month period were approximately U.S. $6,068,000 (equivalent to a gain of U.S. $0.62 per share). As a result, the net realized and unrealized gains were approximately U.S. $7,470,000 (equivalent to a gain of U.S. $0.76 per share) for the six months ended April 30, 2011.

In comparison, for the quarter ended April 30, 2010, the Fund earned net investment income of approximately U.S. $562,000 (equivalent to income of U.S. $0.06 per share) resulting in net investment income for the six-month period of approximately U.S. $569,000 (equivalent to income of U.S. $0.06 per share). In addition, net realized and unrealized gains from investment activities and foreign currency transactions during that same three-month period were approximately U.S. $14,298,000 (equivalent to a gain of U.S. $1.51 per share). As a result, the net realized and unrealized gains were approximately U.S. $17,366,000 (equivalent to a gain of U.S. $1.83 per share) for the six months ended April 30, 2010.

On April 30, 2011, total net assets of the Fund were approximately U.S. $161.1 million. The net asset value ("NAV") per share on that date was U.S. $16.16, based on 9,968,414 shares outstanding. Assuming the reinvestment of the U.S. $1.85 per share dividend paid on December 30, 2010, the Fund generated an investment return of 5.21% for the six months ended April 30, 2011, when measured against the NAV per share of U.S. $17.26 on October 31, 2010, based on 9,493,516 shares outstanding at that time. For the six months ended April 30, 2011, the Fund's benchmark, the Straits Times Index ("STI"), increased by 7.15% in U.S. dollar terms.

In comparison with the same quarter-end of the previous fiscal year, total net assets on April 30, 2010 were approximately U.S. $146.9 million, equivalent to a NAV of U.S. $15.47 per share, based on 9,493,516 shares outstanding.

As of April 30, 2011, the Fund had 97.52% of its net assets invested in Singapore equity securities and 0.98% invested in Malaysian equity securities. The balance of the Fund's net assets were in the form of time deposits and other cash equivalents denominated in Singapore Dollars ("SGD") (0.92%), Malaysian Ringgits ("MYR") (0.69%), U.S. Dollars ("USD") (0.04%) and liabilities in excess of other assets negative 0.15%.

As of June 23, 2011, the Fund's NAV per share was U.S. $15.22, based on net assets of approximately U.S. $151.8 million. On the same date, the Fund's shares on the New York Stock Exchange closed at U.S. $14.09, representing a trading discount to NAV per share of 7.42%.

Singapore Market Review

During the six months ended April 30, 2011, the STI continued its upward trend given volatility caused by political uncertainties in the Middle East and continued fears of monetary tightening by the Chinese government. Underlying economic momentum in Singapore and its regional neighbors remained robust, leading to continuing upgrades in corporate earnings.

Singapore stocks continued to climb on the back of healthy export and manufacturing data and signs that inflation may be moderating. Non-oil domestic exports ("NODX") in March 2011 grew by 10% year on year ("YOY")(versus 6.9% in February 2011), driven largely by the non-electronics segment; however on a seasonally-adjusted, month-on-month basis, NODX decreased 2.9%, likely as a result of the earthquake and resulting crisis in Japan in March 2011. The Consumer Price Index ("CPI") rose by a marginal 0.1% in March 2011, with a YOY increase of 5.0%. The Monetary Authority of Singapore ("MAS") re-centered the SGD'S nominal effective exchange rate (NEER) policy band in April 2011 to allow for further SGD appreciation.

During the six months ended April 30, 2011, the Singapore government continued to introduce a series of measures to cool down the residential property market which has seen strong pick-up in demand and rising prices. The inflationary pressure driven by high commodity and food prices also prompted further appreciation of the SGD.

Outlook and Strategy

Inflation and fears of monetary tightening in China are expected to weigh on risk sentiment. Data that continues to point to a too-rapid pace of economic expansion and soaring food and raw material prices have raised fears that the Chinese government will have to resort to increasingly severe measures to clamp down on inflation. Moreover, the recent harsh winter is threatening to further push up food, especially vegetable, prices, increasing the likelihood of a spike in food prices in the next two months. Rising wages are expected to contribute further to inflationary pressures. Against this backdrop, we do not expect inflation to peak any time soon, with the best case scenario being after the first quarter of 2011. Hence, we expect the risk appetite, especially within the Asian markets, to remain subdued in the near term due to investor jitters over inflation and further monetary tightening in China.

Oil prices have been increasing steadily since August 2010 resulting from increased demand as the global economy recovers from the downturn. Amid the current turmoil in Egypt, which has triggered fears that oil shipments passing through the Suez Canal could be disrupted, oil prices are expected to continue to spiral up and breach $100 a barrel. We expect rising oil prices to bode well for oil and gas and related companies, and are increasingly optimistic about this sector. The Fund maintains an overweight position in the offshore and marine sector.

We expect markets to remain volatile amid fears of monetary tightening. However, the economic growth outlook remains healthy and well balanced as the manufacturing industry is expected to moderate and the services industry will continue to benefit from strong domestic consumption. We continue to have a positive outlook on cyclical sectors such as commodity, domestic consumption and offshore marine and expect the earnings growth momentum to continue into 2011.

The ten largest industry classifications of the Fund's equity investments
held at April 30, 2011 were:
                                                           Percentage of
         Industry                                            Net Assets
         --------                                            ---------
      1. Banks                                                   17.95%
      2. Property Development                                    15.63
      3. Conglomerate                                            10.49
      4. Shipyards                                                8.96
      5. Health & Personal Care                                   7.67
      6. Telecommunications                                       6.68
      7. Food, Beverage, Tobacco                                  5.02
      8. Diversified Financial                                    4.95
      9. Transportation - Marine                                  4.85
     10. Transportation - Air                                     2.94


The ten largest individual common stock holdings at the same date were:

                                                           Percentage of
         Issue                                               Net Assets
         -----                                               ---------
      1. United Overseas Bank Ltd.                                9.45%
      2. Oversea-Chinese Banking Corp. Ltd.                       8.50
      3. Genting Singapore Plc., Ltd.                             6.80
      4. Singapore Telecommunications Ltd.                        6.68
      5. Wilmar International Ltd.                                6.31
      6. Hongkong Land Holdings Ltd.                              4.96
      7. Singapore Exchange Ltd.                                  4.95
      8. Jardine Matheson Holdings Ltd.                           4.90
      9. Keppel Corp. Ltd.                                        4.55
     10. Noble Group Ltd.                                         4.30



QUARTERLY RESULTS OF OPERATIONS

                                        Net Realized
                                       and Unrealized      Net Increase
                                     Gains (Losses) on    (Decrease) in
                          Net          Investment and       Net Assets
For the Quarter       Investment      Foreign Currency      Resulting
 Ended               Income (Loss)      Transactions      From Operations
                    ---------------  ------------------  -----------------

                     Total     Per    Total       Per     Total      Per
                    (000's)  Share   (000's)      Share  (000's)    Share
                    ------   ------  -------     ------  -------    ------

January 31, 2011    $ (231)  $(0.02) $ 1,402     $ 0.14  $ 1,171    $ 0.12
April 30, 2011         443     0.04    6,068       0.62    6,511      0.66
                    ------   ------  -------     ------  -------    ------

For the Six Months
 Ended April 30,
 2011               $  212   $ 0.02  $ 7,470     $ 0.76  $ 7,681    $ 0.78
                    ======   ======  =======     ======  =======    ======


January 31, 2010    $    7   $ 0.00  $ 3,068     $ 0.32  $ 3,075    $ 0.32
April 30, 2010         562     0.06   14,298       1.51   14,860      1.57
July 31, 2010          466     0.05    1,007       0.10    1,473      1.57
October 31, 2010       432     0.04   15,081       1.59   15,513      1.63
                    ------   ------  -------     ------  -------    ------

For the Year Ended
 October 31, 2010   $1,467   $ 0.15  $33,454     $ 3.52  $34,921    $ 3.67
                    ======   ======  =======     ======  =======    ======



PER SHARE SELECTED QUARTERLY FINANCIAL DATA

                            Net Asset          Market        Share
For the Quarter Ended         Value            Price*        Volume*
                         ----------------  ----------------  -------
                          High      Low     High      Low     (000)
                         -------  -------  -------  -------  -------
January 31, 2011         $ 18.41  $ 15.14  $ 17.88   $13.80    1,003
April 30, 2011             16.13    14.27    15.20    13.38      568

January 31, 2010         $ 14.95  $ 13.73  $ 13.66   $12.15      526
April 30, 2010             15.68    13.54    14.01    11.75      402
July 31, 2010              15.63    13.46    14.27    11.82      499
October 31, 2010           17.61    15.24    16.82    13.44      801

*As reported on the New York Stock Exchange.

Contact Information