OVERVIEW:
Incorporated in Bermuda, the counter is an open ended mutual fund which focus on public equity (diversified sectors) and fixed income markets across the globe. The fund invests primarily in operating lease assets, loan portfolio and securitization assets, etc. Its aim is to generate steady income and potential capital appreciation. It is managed by Singapore Consortium Investment Management Ltd, which holds a capital market services licenses for fund management issued by MAS.
HIGHLIGHTS:
[1] Latest financial result saw stable earning for 1H2016. Higher interest income is due to higher investment (40% to 60%) in bond portfolio.
[2] Asset portfolio mainly invest in bonds with half distribution in USD. Contigent convertibles bonds (COCOs financials) occupy 50% of its bonds portfolio. Another 50% is well diversified in various sectors. Total assets expose to three currencies, SGD (33%), USD (30%) and EUR (17%).
[3] The counter is in net cash position without any borrowing.
INVESTMENT THEMES:
[1] 1H2016 registered net asset value and dividend at 0.192 and dividend 0.0075 per shares.
Current valuation @ 0.139 is attractive: PB ~ 0.7 || Dividend yield ~ 11% || PE ~ 11
[2] The counter has been generating stable revenue over past four years. Its return of asset and return of equity maintained ~5% throughout.
[3] It's portfolio composition allows investors to look forward stable dividend yet potential capital gain. Management is also actively re-allocating investment to cope with changing market conditions.
PRICE TREND:
The counter will enter EX (exclusive of dividend) on 22 Aug (tomorrow). It is expected to fall on immediate support 0.128, which translates to 12% dividend yield. Interestingly, historical chart shows that EX dates on August used to be good buying window into the counter as refer to red arrow below. Since price tends to move up till next year afterwards.
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