How does NTUC Income earn 4% better than similar funds?

Dear Mr Tan,

I read your posting on your Global Equity fund. During the 3 years, the annual return is 4% higher than the average for the other funds. The difference in the expense rate is only 0.3%. Where does the other 3.7% come from? Are your fund managers better than the others?

JK

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Dear JK

Frankly, I do not know the answer. I think that the quality of the fund managers should be similar. Most funds will probably engage quite good investment managers.

I suspect that some of the other funds have high charges that are not disclosed in the expense rate. Maybe there are leakages that affect the return on the fund.

For example, if some investors are allowed to make additional investors at a favourable price, it will be at the expense of the other investors and will reduce the overall return on the fund.