SINGAPORE (Aug 17): Six Singapore-focused equity funds available for sale locally (see table below) own shares in chilli-crab restaurant operator Jumbo Group Ltd. Last week, the company announced a stellar set of 3QFY2016 results, with earnings doubling to S$3.4 million.

Shares of SGX-listed Jumbo have risen nearly 51% this year while Singapore’s benchmark Straits Times Index (STI) has only returned 2.7%. Revenue for the stock’s third quarter increased 13.8% to S$32.7 million from S$28.7 million. This was mainly due to contributions from two new Jumbo Seafood restaurants located in Shanghai. There was also an overall increase in revenue from the group’s other restaurants.

The largest fund holding Jumbo is Gillian Kwek’s S$103 million Fidelity Singapore fund, which has risen 2.7% this year. In an earlier e-mail reply to Personal Wealth, Kwek said she likes “the strong brand equity of Jumbo and its management’s strong focus on cost control and profitability”.

Meanwhile, the S$3 million Deutsche Singapore Sm/Mid Cap fund has the largest exposure to Jumbo at 2.66% of assets at Dec 31, 2015. The fund has gained 7.4% this year, easily beating the STI. A focus on small to mid-cap stocks such as retail REIT Frasers Centrepoint Trust (+21.3%) and Tiger Balm ointment-maker Haw Par Corp (+10.9%) has boosted the fund’s returns.

Looking ahead, Jumbo’s management said that “the F&B industry is expected to continue to be challenging, given the weak economic outlook coupled with pressure on operating costs.” The company will focus on increasing productivity and efficiency while lowering operating costs.

Jumbo raised S$40 million in an initial public offering last November and counts a unit of Temasek Holdings as a shareholder.

To find out more about Singapore equity funds and the strategies that have paid off, refer to Personal Wealth (August 8).

Notes: Data sourced from Morningstar Direct. Returns as at Aug 12 and in Singapore dollar terms. Only funds whose portfolio dates are after Dec 31, 2015 are included