FSMOne SG - Research Highlights

2021-08-07 05:45:07 ESR Cayman is set to acquire ARA Asset Management, the largest real assets manager in the APAC region, for a consideration of USD 5.19b.

This acquisition will likely boost ESR’s earning power while having little effect on its credit profile so far. What’s ahead for ARA bond holders though? https://bit.ly/3fE41bc Open / Comment

2021-08-06 13:45:18 Mapletree’s latest perpetual offers an attractive FPG of 3.7%, compared to its other SGD perps with YTWs below 3%. However, investors should take note that it’s a fixed-for-life perpetual.

Such instruments have high modified durations and may work heavily against investors in a rising interest rate environment: https://bit.ly/3fmOCvt Open / Comment

2021-08-05 13:49:23 Stock Idea

Q&M Dental Group: Look out for this resilient business with many growth drivers

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• Q&M Dental Group is a leading private dental healthcare group in Asia. It has the largest network of private dental outlets in Singapore, and an expanding presence in Malaysia and China.

• Despite being the market leader in Singapore’s private dental space, there is still ample room for growth, given the shortage of dentists in Singapore.

• Although there were some disruptions caused by the Covid-19 pandemic, Q&M's core dental business has been remarkably resilient.

• The Group has an added revenue stream coming from the incorporation of Acumen Diagnostics Pte. Ltd, which manufactures Covid-19 PCR test kits and provides testing services.

• Our 2023 target price for Q&M is SGD 1.00, and this translates to an upside potential of 18%, based on the last closing price of SGD 0.845 on 4 August 2021.

: Read the full article here
: Q&M Dental Group (SGX:QC7) Open / Comment

2021-08-04 12:47:28 ETF Idea

Significant changes to the iShares Hang Seng Tech ETF that you should know about

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• Beginning 2 August 2021, the iShares Hang Seng TECH ETF will resume making investments into sanctioned Chinese companies, reversing a policy that it undertook six months ago.

• With these changes, investors can expect the tracking difference between the ETF and its underlying index to narrow.

• We reiterate that the iShares Hang Seng TECH ETF is still our top pick for exposure to China’s tech sector.  

: Read the full article here
: iShares Hang Seng TECH ETF (HKEX:3067) Open / Comment

2021-08-04 03:40:20 Fund Idea

Top equity funds 2Q 2021: Growth Sectors Rebound; DMs & Latin America lead the way.

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• Equities generally had a good quarter, with both value and growth showing strong performance.

• In general, developed markets outstripped their emerging market counterparts, who were left reeling after multiple delta variant outbreaks and continued shenanigans by the Chinese government.

• While Asian EMs struggled, Latin American markets rebounded strongly, dominating the list of Top Performing Funds after a disappointing 1Q.

• Moving forward, the Jackson Hole Symposium and the Chinese regulatory climate are worth keeping an eye on. This should provide some indication of what the investment landscape will look like as we emerge into a post-COVID world.

: Read the full article here
: 5 Funds investors should look at for the second half of the year Open / Comment

2021-08-03 03:42:11 Deutsche Bank’s group profit before tax in 1H21 was 7 times more than that in 1H20. Apart from its strong bank earnings, here are 4 other reasons to buy Deutsche Bank bonds: https://bit.ly/dbebdns

Evergrande is reeling from another round of downgrades, this time from both S&P and Fitch. That’s not all – the Group is facing more blows and new lows: https://bit.ly/3A0990Z

In this week's Bond Market Monitor, Keppel Corp proposes to acquire SPH via Scheme of Arrangement, and more updates: https://bit.ly/3C6duS9 Open / Comment

2021-08-02 03:46:44 Fund Idea

Top Fixed Income Funds 2Q 2021: What happens when US Treasury Yields freefall from Year-highs?

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• The performance for fixed income markets in 2Q was a far cry from that of the volatile first quarter. Despite trading rangebound in April-May, June’s sharp fall in yields was met with a rally across the bond universe, particularly the credit segments.

• Global bonds rose 1.3% while emerging market (EM) bonds and global high yields (HY) saw the biggest gains of 3.0% and 3.1% respectively, in USD terms

• On aggregate, fixed-income funds on our platforms have raked in returns of 1.83% over the quarter, with the best-performers being EM Bonds funds at 3.02% and the worst-performers being Asian HY bond funds at -0.28%.

• As treasury yields fell across the 2nd quarter, so did most fixed income segments across the investible universe. 11 out of the 12 main bond categories – from global bonds to US HY – are currently trading at yields of 5-year lows.

• Looking ahead, we see pockets of value emerging in one segment of the fixed income markets. Read more to find out what it is.

: Read the full article here
: 5 Funds investors should look at for the second half of the year Open / Comment

2021-07-30 13:00:37 Quick Take

China's tech crackdown may strike fear in hearts, but its impact will be uneven

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• The Chinese government has clamped down on various big tech companies. In the near term, investors should expect more volatility as regulatory risk continues to weigh on market sentiment.

• Regulations will impact companies unevenly, and we are most pessimistic on companies whose earnings will be directly affected.

• Diversification is the way forward to tide the near-term volatility, as the long-term growth of the sector remains. 

: Read the full article here
: iShares Hang Seng TECH ETF (HKEX:3067) Open / Comment

2021-07-30 07:23:55 Fund Idea

Fund Friday: Looking to REITs for steady income? Here’s one fund to consider.

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• REITs have pretty resilient so far, despite the negative Covid-19 impact. Overall leverage ratios for REITS were at or near the lowest on record, and many REITs lengthened the maturities of their debts to reduce the risks of having to refinance during adverse market conditions.

• This is particularly true for Asia Pacific Reits. Not only are their healthier gearing ratios signifying strong balance sheets, the strong rebound in M&A activities across Australia, Hong Kong and Singapore are pointing to growing business confidence as well.

• Amidst the backdrop of a favourable economic outlook ahead, we would like to highlight our recommended fund for Asia Pacific REIT: Manulife Global Fund - Asia Pacific REIT Fund.

• We particularly favour the Manulife APAC REIT Fund for its heavy exposure to Singapore REITs. While Singapore has fallen back into Phase 2 due to the recent clusters, its vaccination rollout continues to ramp up smoothly, leading to an inevitable reopening once the majority of its citizens are well-inoculated.

• For investors looking for income returns in a yield-starved market, APAC REITs are an attractive option to consider – both as a strong recovery play, and for future growth opportunities.

: Read the full article here
: Manulife Global Fund - Asia Pacific REIT Fund Open / Comment

2021-07-30 03:34:14 ESR-REIT's latest bond offers a final price guidance of 2.60%, down from its initial guidance of 2.75% - an indication of strong demand. https://bit.ly/3xbuIJY Open / Comment