Regarding Q 4,
The question states, “e Straits Times Index (STI), a value-weighted index of the 30 largest firms traded on the SGX”
The solution states GB1 is a market oriented style (not value) because, “Fund GB1 has characteristics that are almost identical to the broader STI”
Can someone clarify this?
It appears to me that the question is saying that the STI is a value subset of the sgx, but the solution is saying that mirroring the STI is a market oriented (not value)
You are talking about Q3 and not Q4.
I think you do not interpret "value-weighted index " correctly when you say : “the question is saying that the STI is a value subset of the sgx”.
From my point of view, it has nothing to do to being a “growth” or “value” , but the type of construction of the index (Price weighted/ Value weighted (capitalization-weighted) or equal weighted index).
The difficulty of this question ( for me at least) was to know if one should compare GB1 to STI or GB1 to SGX.
Once it is known that you should compare GB1 to STI, the answer seems easy to understand:
A market-oriented equity style is one that is neither value nor growth. Fund GB1 has characteristics that are almost identical to the broader STI. Although two (dividend yield and P/E) of the four reported characteristics lean slightly toward a growth style, the other two (P/B and projected EPS growth) lean slightly toward a value style.