4 April 2024 Asian Equity Team Watch snippets from the related Insights article titled “Prospect of lower rates makes Asian REITs an increasingly vibrant asset class” Important information: This video is prepared by Nikko Asset Management Co., Ltd. and/or its affiliates (Nikko AM) and is for distribution only under such circumstances as may be permitted by applicable laws. This video does not constitute personal investment advice or a personal recommendation and it does not consider in any way the objectives, financial situation or needs of any recipients. All recipients are recommended to consult with their independent tax, financial and legal advisers prior to any investment. This video is for information purposes only and is not intended to be an offer, or a solicitation of an offer, to

Nikko AM Shenton Emerging Enterprise Discovery Fund highlights 22 March 2024 Watch Grace Yan, Senior Portfolio Manager of Asian Equity, who manages this award-winning fund as she shares with us on how investing in stocks of Asia ex-Japan smaller companies can be advantageous to an investors’ portfolio. Important information: This video is prepared by Nikko Asset Management Co., Ltd. and/or its affiliates (Nikko AM) and is for distribution only under such circumstances as may be permitted by applicable laws. This video does not constitute personal investment advice or a personal recommendation and it does not consider in any way the objectives, financial situation or needs of any recipients. All recipients are recommended to consult with their independent tax, financial and legal advisers p

Naomi Fink, Global Strategist 28 March 2024 Excerpts from related insights article titled “BOJ takes significant yet incremental step on path back to “normal” rates” Important information: This video is prepared by Nikko Asset Management Co., Ltd. and/or its affiliates (Nikko AM) and is for distribution only under such circumstances as may be permitted by applicable laws. This video does not constitute personal investment advice or a personal recommendation and it does not consider in any way the objectives, financial situation or needs of any recipients. All recipients are recommended to consult with their independent tax, financial and legal advisers prior to any investment. This video is for information purposes only and is not intended to be an offer, or a solicitation of an offer, to

End of negative rates, yield curve control and ETF purchases smoothly digested Naomi Fink, Global Strategist 29 March 2024 The “trial balloons” of media announcements in advance of today’s interest rate hike by the Bank of Japan (BOJ) —its first in 17 years—apparently did their job, as the end of its negative interest rate policy, yield curve control (YCC)[1] and ETF purchases were smoothly digested by markets. Indeed, the BOJ had already embraced greater flexibility on YCC and has significantly decreased its ETF purchases well prior to the policy decision. Neither the yen nor the Nikkei showed extraordinary movements, and Japanese Government Bond (JGB) 10-year yields so far remain contained below 80 basis points (bps). In prior speeches (e.g. Deputy Governor Shinichi Uchida’s much talked-

Future Quality in a changing world. 20 December 2023 Global Equity Team Watch our Global Equity Outlook 2024 video below: Financial regulators like to say that past investment performance is no clear indicator of future performance. Yet, we investors often look to the past to glean an indication of what future market conditions may be like. There are often patterns that can be exploited or traps that may be avoided. As we head into 2024, however, the past may not provide the usual useful insights. From a macro perspective, central banks’ experimentation with quantitative easing—which provided relatively benign market conditions since the Global Financial Crisis—is being unwound and this “quantitative tightening” is new territory for policymakers and investors. At the same time, we seem to

Focus on growth pockets, quality opportunities and earnings resilience. 13 December 2023 Asian Equity Team Watch our ASEAN Equity Outlook 2024 video below: ASEAN well placed for growth in 2024 Global monetary tightening and the dollar’s exceptional strength stood out in 2023, and these factors were a major headwind for most emerging markets including ASEAN. In our view, focus in 2024 will shift from interest rate tightening towards growth, or more specifically, finding pockets of growth amid a slowing global economy. We expect ASEAN to perform relatively well as the region, in our view, possesses a relatively stronger growth narrative and a more accommodative policy backdrop.  ASEAN’s growth as a region is poised to edge up from an estimated 4.0% in 2023 to 4.5% in 2024*. Though incr

Fundamentals and technicals to remain supportive. 9 January 2024 Asian Fixed Income Team Fundamentals Macro The year 2023 turned out differently than we initially envisioned. Throughout 2023, investors have eagerly watched US jobs data and inflationary readings, debating the timing of the last rate hike. Recent rhetoric from Fed officials suggests the central bank is not ruling out another increase in 2023, as labour market conditions remain tight, business activity continues to be more robust than expected and inflation stays above the Fed’s 2% target. Global growth defied any kind of recessionary expectations although interest rates have been raised further and cuts that the market anticipated continue to be postponed. The current macro and market backdrop may see little or minor change

Domestic consolidation, long-term reform measures ahead. 27 December 2023 Japan Equity Team Watch our Japan Equity Outlook 2024 video below: Introduction Japanese equities scaled impressive heights in 2023, with the TOPIX and the Nikkei Stock Average reaching their highest levels since 1990 and outperforming almost all global peers to become the envy of the developed world (1). We expect 2024 to be a year of domestic consolidation and long-term reform measures, where markets are driven more by Japan-specific events than by global factors. After decades of deflation, we see Japan as finally breaking out of this cycle in 2024, as it enters a virtuous cycle of price increases and wage hikes. Wage increases to kick-start domestic growth Japan is on the cusp of transitioning to an inflationary

Written by: SG Budget Babe, March 3, 2023 10 minute read There’s no doubt that electric vehicles (EVs) are the future. But the question is, who will win the EV race? Will it be Tesla, Nio, Rivian, Xpeng, BYD, Hyundai or perhaps Ford? A few weeks ago, the Internet was abuzz after Elon Musk said that he expects Tesla’s main rival to be a Chinese player. Could that be BYD, Nio or Geely? While only time will tell which Chinese player will emerge champion, one thing is certain: we cannot underestimate China when it comes to the growing EV industry. After all, China’s plans were already underway more than a decade ago (while other countries were still debating over whether climate change was indeed a real threat), and the government began subsidizing EV sales as early as 2010 when the industry

China’s reopening has brought a wave of foreign investor interest to its bond market. Is it time to relook at China bonds, and the potential benefits they might bring to your portfolio? Written by Priscilla Lee, Value Champion, November 3, 2023 China bonds have established and solidified themselves as an asset class amongst institutional investors. According to the Bank of International Settlements, China is now the second largest issuer of bonds in the world.^ In 2022, China accounted for US$20.9 trillion worth of bonds, behind the US (US$51.3 trillion), and ahead of Japan (US$11 trillion). China’s rise as a global debt issuer is impressive, considering its bond markets clocked in at just US$3.1 trillion in 2010. The growth was especially robust in the last three years, when the Chinese

Introducing the Nikko AM-StraitsTrading Asia ex Japan REIT ETF 5 benefits that Nikko AM-StraitsTrading Asia ex Japan REIT ETF can offer investors: #1 Simplify your REIT investments #2 Reputable Manager and Index #3 Enjoy tax transparency #4 Invest with CPF and SRS funds #5 Dollar Cost Average with monthly investment plans Visit Nikko AM's website for more information.

Written by: Alvin Chow aka Dr Wealth Investing in REITs has faced significant hurdles in 2023, primarily due to the interest rate hikes. The fundamental reason behind this difficulty is straightforward: REITs rely on borrowed funds to acquire properties, and higher interest rates translate to increased financing costs, resulting in reduced dividends for unit holders, which in turn make REITs less attractive to yield seekers. In more favorable times, when interest rates were low, profiting from REITs seemed relatively simple. However, the current environment, characterized by rising interest rates and a sluggish economic growth pace, has exposed vulnerabilities within the REIT market. Notably, two REITs—Manulife US REIT and Dasin Retail Trust —have witnessed substantial share price plunges

The share price performance of Singapore REITs has been mixed so far this year. We find out why diversification may be a sound REIT investing strategy. This post was created by Beansprout in partnership with Nikko Asset Management Asia Limited. All views and opinions expressed in this article are Beansprout's objective and professional opinions. What happened? Investors in Real Estate Investment Trusts (REITs) have seen mixed fortunes this year. While a benchmark of Singapore REITs as measured by the iEdge S-REIT Index has declined by about 4% from January to August 2023, the returns of individual REITs have been widely divergent with interest rates expected to remain higher for longer. (Source: SGX) For example, the performance of data centre REITs such as Keppel DC REIT has been strong

Asia ex Japan REITs market update (October 2023) Watch our video for the latest insights on the Asia ex Japan REITs market and sector trends.

By the Japan Equity Team December 2022IntroductionAs geopolitical risks and globalisation are reassessed in the wake of the COVID-19 pandemic and war in Europe, we believe that Japan stands to benefit as more companies refocus on their home markets. Rising inflation could potentially break the cycle of disinflation (temporary slowing of the pace of price inflation) and low wages, paving the way for the Bank of Japan (BOJ) to revise its accommodative policy. In addition to these macroeconomic factors, continue to help investors unlock value in 2023.Geopolitical risk and Japanese companiesNational and energy security became major focal points in 2022 in the wake of Russia invasion of Ukraine. The direct impact of the war is being felt most acutely in Europe, which has close economic ties wit