FSMOne SG - Research Highlights

2022-05-03 05:31:01 New Funds on Board [1Q 2022]

In this quarter’s highlight, we shine the spotlight on five different fund strategies, including a new fund that gives exposure to frontier markets.

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• Equity investors can gain an insight into funds covering different geographies, including a frontier markets fund and an ESG-aligned China fund.

• Alternatively, two new equity funds have been launched that could benefit from the consumer revolution and the commodities supercycle.

• Fixed income investors can also check out this new short-duration bond to diversify your portfolio!

: Read the full article here Open / Comment

2022-05-02 05:30:32 ETF Idea

ETF Insights: Check out this ETF that benefits from one of the largest internet markets (Apr 2022)

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• Don’t miss out on the second-largest internet market in the world, with this new ETF.

• Hang Seng Investment Management takes over the Tracker Fund of Hong Kong – what does this mean for investors?

• A new semiconductor ETF debuts – yay or nay?

• This new ETF benefits from the global supply-chain crunch.

• Diversify your Singapore portfolio in a sustainable manner with a new SGX-listed ETF. Discover the latest happenings in the ETF industry.

: Read the full article here Open / Comment

2022-04-29 03:49:53 Keppel Infrastructure Trust is tapping on the bond markets again with its latest 5-year issue. The SGD issue offers higher yields compared to its existing 2026 one: https://bit.ly/3vLqLNJ Open / Comment

2022-04-26 14:48:58 The Straits Trading Company issued a new SGD 4-year bond with a FPG of 4.1% - one we find more attractive than its outstanding 3.75% notes also maturing on 2025: https://bit.ly/36HYLSq

In this week's Bond Market Monitor, Dexin China has deposited funds to repay its USD bond due 23 April 2022.

Plus, updates on Australia’s Monetary Policy Meeting and ESR-LOGOS REIT’s unsecured loan facilities agreement: https://bit.ly/3vb0Bof Open / Comment

2022-04-24 07:00:28 Stock Idea

Disney over Netflix – “Marvel over Squid Game”

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• Disney has two key divisions – Media & Entertainment, and Parks, Experiences & Products, with revenue contributions of 67% and 33% respectively.

• The media industry has seen changes over the past decade, with streaming as the new game-changer where Netflix and Disney are the two biggest contenders (excluding China).

• Although we think that the streaming industry can accommodate both players, we prefer Disney because of its brand and content strength, and attractive growth ahead.

• Applying a sum-of-the-parts valuation methodology, we arrive at a target price of USD 201. This gives investors an attractive upside potential of 65% at the closing price of USD 121.6 as of 22 April 2022.

: Read the full article here
: The Walt Disney Company (NYSE: DIS) Open / Comment

2022-04-23 07:01:27 Top Equity Funds of 1Q22

A rude and painful awakening for most investors

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• Equity markets were a sea of red in 1Q22, battered by a triple whammy of inflation, monetary tightening, and the Russia-Ukraine conflict, with the FSM Indices – All Equity returning -7.68%

• Powered by the undercurrent of surging commodity prices, the top performing funds of 1Q22 are all tied to the commodity theme.

• Meanwhile, amongst the worst performers were (unsurpisingly) Emerging Europe Funds.

• Finally, we share some ideas on how investors could position their portfolios for inflation and rate hikes.

: Read the full article here Open / Comment

2022-04-22 10:00:14 Top Fixed Income Funds of 1Q22

These funds held up well despite a rocky start to the year

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• We saw elevated volatility in bond markets in the first quarter of 2022, as the Fed kicked off its rate hike cycle amidst a four-decade high inflation as well as Russia’s invasion of Ukraine.

• Nonetheless, the top performing funds recorded positive returns, with the FTIF – Templeton Global Bond A Acc USD leading the list.

• Due to weakening sentiment in the Chinese property sector and uncertainty stemming from the Russia-Ukraine conflict, Asian high yield bond funds took up several spots in the bottom performing funds.

• As bond markets remain volatile, we share how investors can position their portfolios during a rising rate environment.

: Read the full article here Open / Comment

2022-04-20 04:13:56 The world’s largest semiconductor foundry tapped on the USD bond market and introduced a multi-tranche deal with expected issue ratings of AA- for all bonds: https://bit.ly/3vrmQW0 Open / Comment

2022-04-19 04:31:10 Macro Research

Value stocks are back in favour. Time to add Value exposure.

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• Value remains supported by the inflation backdrop. On the basis of elevated price pressure and upside risk to inflation, Value can outperform growth. The former tends to outperform i) during periods of high inflation and ii) rising policy rates.

• Despite moderation in global growth momentum, we see growth catalysts down the road, mainly from fiscal impulse and Asia’s re-opening. The reopening wave should also put Value in the spotlight again.

• Relative valuation remains attractive. Value continues to trade at a wide discount to Growth. At such an extreme level, there is room for the value rotation to run and for the discount gap to close. Earnings momentum supports further Value rotation.

• Considering our view on Value and Growth, we recommend investors to review their portfolio exposure. If their portfolios are skewed towards Growth, especially the unprofitable and over-valued stocks, they should diversify away and add Value exposure.

: Read the full article here Open / Comment

2022-04-14 11:00:50 ETF Idea

REMX: Invest in these metals that are vital for advanced technologies

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• We are bullish on the structural growth story for rare-earth and strategic metals (RESMs), due to their widespread usage in emerging green technologies like electric vehicles and renewable energy.

• Traditional end-uses of RESMs, such as catalytic converters and electronic devices, will continue to form the backbone of steady growth in RESM demand.

• Due to the widespread usage of RESMs, countries are moving towards greater self-reliance. This push towards self-reliance will likely be accelerated by the recent Russia-Ukraine War, which has exposed Europe’s over-reliance to Russian energy.

• The VanEck Rare Earth/Strategic Metals ETF (NYSE:REMX) gives investors exposure to companies that supply these RESMs.

• Using a fair PE ratio of 20X, we project a target price of USD170 for REMX, giving an upside potential of +47% by FY24.

: Read the full article here
: VanEck Rare Earth/Strategic Metals ETF (NYSE:REMX) Open / Comment