It’s been a tumultuous year so far, with (literal) ups & downs in the market.Investors alike haveBeen burnt by the market, and do not want to invest furtherOr are sitting out to wait for the bear to tide overBut what if we told you, there is a way to continue making your spare funds work hard to catch up with the elephant in the room, that is Inflation. What if we told you, we have curated just the right product for you to not only earn 2.4%* p.a while waiting for the next market opportunity, but give you the flexibility to deploy it immediately in one simple step when that opportunity comes?Not convinced? What if we told you, you could start investing from as low SGD/USD 1?Let us paint you a picture. Often, we sit on our spare cash in the banks – but are the banks’ interest rate making every dollar you have work hard enough?*Yield projection is based on current market conditions as of July 2022Amidst the rising price of petrol, electricity bills, and even our beloved chicken, this is now the time to act.That’s why we’re so excited to share with you our latest Cash Management Solution – Tiger Vault – available in SGD & USD currently, and later HKD (which will be coming to you soon).We’ve scoured around for the best list of funds to be put in Tiger Vault, for you to utilise as a temporary parking solution or simply just to generate some returns for your portfolio.Enjoy the benefits of Tiger Vault today, for Tiger Trade APP versions 22.214.171.124 & above.Got a question? Email us at email@example.com to chat with us.Access and invest in over 1000 funds distributed by Tiger Brokers. Go to the Quote section on the app and slide the top bar to Funds to explore the full suites of funds we have on Fund Mall!@TB_Research , @Tiger_SG , @SGX_Stars , @MillionaireTiger , @TigerStars
Money never sleeps - and that's why we have just the right solution for you to make your money work harder.
So what is it? We asked around to see if anyone knows what #TigerVault is.
In conclusion, I guess all we can say for now is: Coming to you soon![Surprised] [Silence]
Persistently elevated inflation have given central banks the impetus to raise rates in their quest to quell price pressures. To recap, the Feds introduced the first rate hike of 25bps in March and what followed was a series of more aggressive increases – May saw a 50 bps rate hike and later 75bps rate increases were imposed in June and July.Since then, global markets have repriced substantially and US asset classes was no different. At a sectorial level, cyclical sectors sold off hard and so did the once high flying technology sector as the aggressive tightening path that the Feds embarked on have now sparked worries of a potential US recession – historically, a Fed hiking cycle has led to a recession occurring within a one to three year period. Hence, these concerns of a recession is not unwarranted for.Chart 1: S&P 500 Index has suffered a rather brutal sell-off this year. Source: BloombergChart 2: US yields have risen substantially over the course of the year as the Feds hike rates. Source: BloombergIn fact, market participants’ fear of a recession have been proven somewhat right. At the current juncture, the US economy is experiencing a technical recession – a technical recession is when a country faces two consecutive quarters of decline in GDP. In essence, the largest economy in the world is not yet considered to be a recession as economists including those at the National Bureau of Economic Research defines recession to be a downturn that is deep, pervasive and long lasting. Nonetheless, there are still positives surrounding US equities despite market participants’ gloomy sentiments.Chart 3: US GDP saw a decline in both 1Q22 and 2Q22. Source: Bloomberg
US firms reported better-than-expected earnings in spite of mounting recessionary riskThe US 2Q22 earnings season is almost drawing to a close at the time of this writing and has been positive thus far. In our view, this is an encouraging sight amidst the slew of negative news developments. Overall, almost 90% of firms have reported their earnings results for 2Q22. Of these firms, 74% of firms have reported positive EPS surprise as gleaned from chart 4 below. However, the percentage of firms which have recorded positive earnings surprises are still below their 5 year average of 77% and on a year over year basis, the S&P500 index is reporting its lowest earnings growth since 4Q20.Chart 4: Majority of firms have displayed the ability to register earnings better than estimates during a period where growth is moderating. Source: Bloomberg Chart 5: Magnitude of earnings surprise. Source: BloombergDelving deeper under the hood, we note that the sectors that saw the highest proportion of firms reporting positive EPS surprise came from Real Estate (83.33%), Energy sector (81.82%) and Industrials (81.25%). The strong earnings coming from the real estate sector came as a surprise to us considering that the current macro conditions (higher mortgage rates and increasing home supply) should theoretically put downward pressure on the sector but instead, home prices have continued to surge which bolstered earnings.Having mentioned that, in terms of earnings growth, the energy sector witnessed a whooping 95% of firms within the sector announce positive earnings growth, with an aggregate growth rate of over 300% – thanks in part to the years of underinvestment and the war in Ukraine, energy prices have soared due to the supply demand imbalance. Unsurprisingly, the sector also had a largest revenue growth amongst the 11 sector – sky high energy prices benefited energy companies.Chart 6: The energy sector saw the largest number of firms reporting positive earnings growth. Source: Bloomberg Chart 7: Firms in the S&P 500 Index registered a better aggregate earnings growth rate compared to the prior season. Source: Bloomberg
How did markets react to the robust earnings of US firms in 2Q22?Generally, the market has rewarding positive earnings surprises and negative earnings more than average. According to FactSet, firms that reported positive earnings surprises for 2Q22 experience an average price increase of +2.9% two days before the earnings release through two days after the earnings release compared to the 5 years average price increase of +0.8% during the same time frameOn the flip side of the coin, companies that have reported negative earnings surprises for 2Q22 have seen an average price increase +1.2% two days before the earnings release through two days after the earnings which is well above the 5-years average of -2.4%.Chart 8: Market price reaction to earnings. Source FactSetIn essence, market participants are placing more emphasis on fundamentals in today’s market terrain relative to the past year where growth potential outweighs fundamentals. Hence, the remarkable earnings results reported to date has spurred a rally in US equities in the month of July – all 3 index delivered positive returns with the NASDAQ index recording the largest gain followed by the S&P500 Index and Dow Jones index in SGD terms.Chart 9: US equities saw the best performance till date in July. Source: Bloomberg
Can the earnings momentum sustain in the coming quarters?Earnings of companies in the coming quarters will really depend on the Fed’s policy path ahead. The reason for our view is simple. If the Feds tightens too much during the coming meetings, the result could be a recession which markets fear. Yet, if the Feds tightens too little, inflation will be the greater threat – inflation is already eroding household savings and inventories of goods are elevated as demand begin to ease. Therefore, the ideal scenario will be for the Feds to achieve a proverbial ‘soft landing’.Generally, we are not placing any odds on either scenarios but we do believe that inflation could perhaps be peaking as economic activity has already slowed substantially for two consecutive quarters. Having said that, we do not hold the view that the largest economy in the world will dip into a recession this year – retail sales have soften but the financial conditions of households remains healthy and should bolster spending, translating to continued support for economic growth, albeit subdued.Chart 10: US household disposable income remains resilient. Source: BloombergWhat we do expect is for earnings to come under some pressure as economic activities moderates and demand ease – our view is aligned with consensus forecast for earnings growth to fall off. Take for example the poster child of 2022, the energy sector. Prices of oil have pulled back from the highs seen earlier this year as market participants dwell over China’s zero-covid policy acting as a drag to demand. Basically, energy companies should see their revenue tail off and so will earnings.Chart 11: Consensus have revised their estimates downwards for both 2022 and 2023. Source: Bloomberg
Is it the time to invest in US equities?Valuations of US equities have come down significantly and earnings have been solid for 2Q – the S&P 500 index trades at a P/E of 20.25x, above its 20 year average, aligned with its 10 year average but below the 5 year average. In this vein, investors could perhaps be considering to include US equities into their portfolio.No doubt, it is important to take a long term view when it comes to investing but we argue that is also wise to protect and position ones portfolio for the prevailing market place. We hold the opinion that there are investing opportunities within US equities and it pays to be selective. Our top pick for investors to alocate some of their monies into is the financial sector.In a world where rates are on an upward trajectory, it spells positive for banks as higher rates can lead to higher net interest margins and therefore an expansion in profitability. Outside of banks, life insurance companies are also prime beneficiaries of higher rates – many life insurance policies involve guarantees and therefore a majority of the products are invested in treasury securities to avoid high risk or volatilities. (While life insurance companies hold a majority of their investments in low risk investments such as treasury securities, they are generally less sensitive to higher rates as they continuously reinvest dividends proceeds into higher yielding bonds.) Additionally, consumers will also have an added incentive to buy a life insurance contract because of the larger returns received, contributing to the earnings of these companies.Access and invest in over 1000 funds distributed by Tiger Brokers. Go to the Quote section on the app and slide the top bar to Funds to explore the full suites of funds we have on Fund Mall!
Singapore is 57 this year! The theme for this year’s National Day, “Stronger Together” stands as a reminder that although our beloved land is small, we are well-known for our robust economy and unity in diversity. In fact, amid inflation, rate hikes, and the slowdown in international growth, the Singapore economy displayed significant resilience, with the STI outperforming several other indices underpinned by the strong recovery in Financials and Banks as well as an upswing in passenger and cargo yields. Overall, we observed the strongest performance in the STI, with a Year-to-date return of 5% compared to the S&P500 of -12.6%.Since Singapore is showing signs of economic strength, you can begin by checking out some of the Singapore funds we offer on the @FundMall . Too many funds to choose from? Don’t worry, we did the work for you. Check out our UT Starter Pack , funds that you can invest in for as low as $400.Lastly, for our nation’s 57th birthday, we want you to have some fun(d). We will be giving away 57 Tiger Coins each to 3 lucky winners. All you have to do is:1) Follow @FundMall 2) Like this Post3) Comment your answer to the following question:
Which of the following is a Singapore fund?a) $FIDELITY AMERICA "A" (SGD) INC(LU0251142724)$ b) $United Singapore Growth Fund SGD(SG9999001127)$ c) $Blackrock ESG Multi-Asset A8 SGD-H(LU2092937148)$ We look forward to receiving your entries. All the best, Majulah Singapura!
**UPDATE as of 16 August 2022**We have concluded this giveaway, and once again thank everyone for your kind participation. Congratulations to following winners! We have credited 57 Tiger Coins each into your respective Tiger Brokers account. Until the next giveaway. [Sly]@koolgal@Kerrisdale@Fenger1188Access and invest in over 1000 funds distributed by Tiger Brokers. Go to the Quote section on the app and slide the top bar to Funds to explore the full suites of funds we have on Fund Mall!
July market update: Aggressive rate hikes did not deter market performance
The first half of 2022 was definitely one to forget for market participants. From developed market equities to emerging market equities, more specifically those in Asia, everything was a sea of red for the bulk of 1H22. Encouragingly, market started the second half of the year on a high, providing some relief to the portfolios of global investors. So how did markets perform in the month of July? Asset class performanceGlobal equities in the month of July saw a better performance despite the two closely watched central banks in the world embarking on a restrictive policy path which sparked recessionary fears – the European Central Bank have raised rates by 50bps while the Feds introduced another 75bps in their quest to quell elevated price pressures. Global equities gauged by the MSCI World Index, delivered a stellar return of 7.39% while global bonds gauged by the Bloomberg Barclays Global Aggregate Index gained 1.66%.The returns of both equities and bonds has no doubt surprised many given that the core worries of markets this year was elevated inflationary pressures spurring majority of the central banks across the globe to hike rates aggressively and thereby setting the stage for a growth slowdown. In our view, what spurred the rally in global equities was two factors: 1) the winding back of bets that the Feds would resort to a 100bps rate hike and 2) better-than-expected earnings reported – US equities makes up more than 50% of the MSCI World Index. Shifting the focus to the fixed income universe, global bonds had their best month thus far despite persistent inflation and central banks’ policy path as fears of a recession outweighed worries of steeper policy rate hikes ahead.Chart 1: US 10Y yields retreated after hitting the highest level since the pandemic started. Source: Bloomberg GeographicalWestern developed markets (DM) experienced a significantly stronger performance as compared to its emerging market (EM) peers – the former registered returns of 3.91% while the latter declined 0.64%. The poorer returns that came from emerging markets was thanks to the gloom surrounding Chinese equities – as gleaned from chart 2, Chinese equities have suffered a beating following a month of spectacular profits generated for investors in June. Delving deeper, we note that US equities outperformed European equities marginally amongst developed markets. This is attributed to the resilient earnings in spite of several headwinds and speculations that the Feds will become less aggressive on their rate hike path in time to come as the world’s largest economy contracted for a second straight month – the decline in US GDP has sparked chatters that inflation might be peaking and is slated to cool. In Asia, Chinese equities which have registered returns of more than 10% in SGD terms in June disappointed this month. Optimism appears to have faded after a lack of fresh stimulus to support a slowing economy disappointed markets. That said, the lack of support was not the only contributing factor to the sell-off. Investors of China’s property sector are getting spooked by covid lockdowns and a rapidly increasing number of disgruntled Chinese homebuyers boycotting mortgage payments on stalled projects. In essence, the worries within the Chinese property market threatens a major strain on the nation’s growth prospect as well as financial system. Chart 2: Most equity market delivered positive returns for investors. Source: BloombergSectorAll sectors traded in positive territory this month, a sign of relief for many market participants. Interestingly, the energy sector which is the poster child for the year of 2022 did not register the largest gain this month as market participants assess a slew of news – oil prices were volatile as it rose on the back of near-term capacity limits which was signaled by the two major producers, Saudi Arabia and UAE, but later declined as recession fears reignited oil demand concerns even against tight supplies. On a more positive note, the technology sector which has been shunned by investors for the bulk of the year has roared back to life, registering a gain of 13%, putting the sector in line as the second-best performing sector of the month. Chart 3:Oil Price volatility continues as investors assess the supply demand dynamics. Source: Bloomberg
Chart 4: All sectors for once managed to avoid registering negative returns. Source: Bloomberg
Our thoughts aheadJuly have proven to be a good month for investors and is something to behold. However, we would like to sound the cautious bell and warn investors not to get ahead of themselves. We expect market volatility to continue moving forward as concerns of rising rates driving the US economy into a recession has been escalating – investors will be keeping a wary eye on the Fed’s policy path and any shift in perception could stoke market volatility. That being said, more pain could lie ahead for global markets as well. With inflation running at the fastest pace in 40 years and growth already slowing down significantly, we see a possibility that a stagflation could occur.Bolstering our opinion is the fact that higher rates will deter growth and high commodity prices will likely continue to persist due to years of underinvestment that will take an unpredictable amount of time to resolve. Should this narrative turn out true, markets will be re-pricing again which will drag down the returns of investors’ portfolios. Access and invest in over 1000 funds distributed by Tiger Brokers. Go to the Quote section on the app and slide the top bar to Funds to explore the full suites of funds we have on Fund Mall!
Fund house introduction: Natixis Investment Managers
We are back with another article under our Fund House Introduction series to provide our platform’s investors with more insights into the various Fund Houses. Today, the fund provider we will be interviewing to find out more about their specialty is @Natixis Investment Manager. An introduction to Natixis Investment ManagersRanked among the world’s largest asset managers, Natixis Investment managers delivers a range of solution across asset classes, styles and vehicles, with an Asset Under Management(AUM) of US$1.4trillion under their belt. Their ability to provide such an extensive range of investment solutions comes on the back of more than 4000 employees in 25 offices across America, Asia Pacific, Europe and the Middle East that work towards more insightful ways to construct portfolios to meet investor’s needs. What can Natixis Investment Managers bring to the tableNatixis Investment Managers is dedicated to advancing sustainable finance and developing innovative ESG products – the firm offers a range of funds and strategies built on the belief that ESG factors can play a meaningful role in uncovering opportunities, identifying potential risks and generating competitive returns for investors. In this vein, we would like to point out that majority of the firm’s affiliates are signatories to the Principles for Responsible Investment (PRI). PRI is the world’s leading proponent of responsible investment. It works to understand the investment implications of ESG factors and supports its international network of investors signatories in incorporating these factors into their investment and ownership decisions. By signing the PRI, these affiliates commit to integrating ESG across their investment approach – from investment analysis and decision making to practices, ESG is incorporate. So what goes behind the work of the firm’s investment managers?Broadly, the asset manager’s approach to ESG begins with a deep dive into their client’s objectives. These objectives are achieved through their consultative approach to create a solution base approach which draws on the expertise of their 20+ independent asset managers – each of the asset manager’s affiliates has a different way of integrating ESG. In essence, the diversity helps the firm match the expertise of their affiliates with the needs and objective of their clients.That being said, aside from offering ESG integration into investment, some of the firm’s affiliates go a step further and offer sustainable or impact investment funds. Typically, these funds are based on positive screening or on themes focused on specific ESG issues such as water management, job creation, smart cities, to name a few. Is there a fund that investors should invest into right now and why? Warnings of a green bubble forming has surfaced with all the attention ESG has gained over the past year and the frothy trading it has seen as investors piled in in droves. Nevertheless, the asset manager believes that despite all time high records set, it is still important to recognize that ESG is not an overnight sensation – the idea of putting capital to work to address ESG issues central to socially responsible investments can be traced back to the environmental movement of the 1970s and has evolved from negative screens to a wide range of strategies for achieving both financial and non-financial results. The team holds the view that growth today is not solely driven by investment objectives. Asset owners and asset managers are facing external pressures from both regulators pushing for the industry to enact more sustainability measures and from investors demands of more sustainable investments – On the policy front, there are many examples of the push from regulators for more sustainable measures and one that is close to us would be regulators in Singapore setting guidelines on environmental risk management. On this note, investors who wish to pursue sustainable investing with a long investment horizon in mind can consider the $Natixis Mirova Global Sustainable Equity R-NPF/A USD(LU1623119135)$. The fund’s investment objective is to outperform the MSCI World Net Dividends Reinvested Index through investments in companies whose businesses includes activities related to sustainable investment themes over the recommended minimum investment period of 5 years. Having mentioned that, there is no doubt that there are many funds which are tailored to capture the theme of ESG investing. However, the reason that investors should consider the above-mentioned fund is because @Natixis Investment Managers affiliate Mirova is one of the earliest movers in the environmental and societal impact space. Mirova’s proprietary ratings on ESG governance factors allows them maximise exposure to highly rated companies – these companies are those that Mirova believes have a positive impact on the UN sustainable development goals. Access and invest in over 1000 funds distributed by Tiger Brokers. Go to the Quote section on the app and slide the top bar to Funds to explore the full suites of funds we have on Fund Mall!
Global markets have been volatile amid rising inflation and tightening central bank policies, this has been intensified because of the on-going supply chain disruptions and geopolitical risks in the world.Investors can continue to seek better risk adjusted return by staying well-diversified through our Tiger Broker’s UT Starter Pack , that have been cherry picked to weather current macroeconomic uncertainties. Our Tiger Brokers Investment team has recently made a change to the funds (w.e.f 8 July) in our UT Starter Pack, after reviewing the current market conditions.How we picked the Funds?The country allocation of the UT Starter Pack is well diversified globally, and the underlying investments especially in the US have been scrutinised to satisfy a relatively less volatile nature compared to its reference benchmarks. We are also positive of the long-term potential of China, being in a completely different economic cycle and easing central bank policies compared to other developed economies. Lastly, the exposure to Singapore, is expected to be a bellwether in terms of defensiveness in today’s market volatilities, given its strong cashflow qualities in its underlying.Moreover, the new UT Starter pack places a heavy emphasis on Environmental, Social and Governance (ESG) qualities that seeks to generate superior returns over the long-term.Here’s a look at the new Funds in our UT Starter Pack1. Blackrock ESG Multi-Asset Fund$Blackrock ESG Multi-Asset A2 SGD-H(LU2077746001)$ invests in multi-assets consistent with principles of Environmental, Social and Governance focused investment. ESG is integrated throughout into the investment process to improve long term financial outcome of the portfolio. The fund is well diversified, including but not limited to investment such as equities, fixed income, money market instruments. According to studies by NYU Stern, it demonstrated a compelling positive correlation between ESG to financial performance; we advocate investors to incorporate ESG focused funds into their long-term asset allocation.2. Fidelity America Fund$Fidelity America A-SGD (hedged)(LU0742534661)$ invests principally in US equity securities and at least 50% of the net assets will be invested in securities deemed to maintain sustainable characteristics. Environmental and social are considered on an on-going basis and adheres to Fidelity sustainable investing framework. The fund is currently overweight in health care and underweight in information technology which has defensive qualities, as we observe global market’s rotation from growth towards value.3. United Singapore Growth Fund$United Singapore Growth Fund SGD(SG9999001127)$ invests primarily in Singapore listed equities that seeks to achieve medium to long term capital appreciation and regular income distribution. Its stock selection of the fund is lower volatility compared to global equities, and invested predominantly in Singapore listed Financials, Real Estate and Industrial sector that could better weather global uncertainties given its strong cash flow qualities. Singapore has demonstrated more resilience in its economy and stock market performance amid this year’s global market volatilities.4. Aberdeen Standard China A Share Sustainable Equity Fund $ABERDEEN STANDARD SICAV I - CHINA A SHARE SUSTAINABLE EQUITY "A" (SGDHDG) ACC(LU1820825898)$ aims to achieve a combination of growth and income by investing in China listed companies. The underlying investment follows Aberdeen’s sustainable equity investment approach, focusing on sustainable leaders and improvers. With economic growth and valuations of China equities starting to bottom and China’s government efforts to reign in the growth slowdown with both easing monetary and fiscal stimulus, we believe it is in a favourable position for long term investors relooking at China.If you wish to change your existing holdings to the newly allocated funds, you may do so via our Tiger Brokers Fund Mall in 2 easy steps:Sell off existing holdingsOnce you’ve received your proceeds, simply click on the “UT Starter Pack” icon on Fund Mall & Subscribe to the new allocationGot a question? Email us at FundmallSG@tigerbrokers.com.sg Access and invest in over 1000 funds distributed by Tiger Brokers. Go to the Quote section on the app and slide the top bar to Funds to explore the full suites of funds we have on Fund Mall!
June Market update: Incoming rate hikes and recession woes haunts markets
The narrative of elevated price pressures, hawkish central banks and recession fears have been well telegraph as of late. In this vein, sentiments of market participants have played snake and ladders over the past 6 months of the year as many hunt for a bottom in the prevailing market rout. So how did markets perform in the month of June?Asset class performanceGlobal equity and bond markets appear to try to stage a comeback in May as we witnessed some gains in the equity and bond market place. However, bits of positivity from the month prior have once again faded. Global bonds gauged by the Bloomberg Barclays Global Aggregate Index registered negative returns of 2.66% while Global Equities, gauged by the MSCI World index shed 7.96% in USD terms. Broadly, Global equities weaker performance did not come as a surprise to us. Buoyed by worries about sizzling hot inflation, aggressive rate hiking cycle plans by central banks to quell price pressures and China’s covid-zero policy possibly jeopardizing growth, sentiments of market participants are generally sour. On the fixed income front, trading within the fixed income universe was tumultuous as investors weighed the implications of the ECB’s policy, persistent inflation and potentially more aggressive rate hike to combat inflation and at the same time search for safety as the equity market remains jittery.Chart 1: US 10y yields marched higher again as the sell-off deepens. Source: Bloomberg GeographicalEmerging markets (EMs) in the month of June outperformed western Developed markets (DMs) at a geographical level – the former registered negative returns of -3.68% while the latter declined 7.32% in SGD terms.The poorer returns that came from western developed markets was attributed to investors continual profit taking thanks in part to aggressive rate hike plans from central banks sparking recession fears.Delving deeper, we note that European equities (gauged by the Stoxx 600 Index) underperformed those in the US (gauged by the S&P 500 Index). US equities which is more likely to suffer the brunt of the sell off this year was somewhat able to eke out a marginally better return despite possessing a greater weighting towards the technology sector – longer duration assets are naturally more sensitive to changes. In our view, the weaker performance of European equities is due to markets repricing for the European Central Bank’s (ECB) rate hike of 25bps which is due in July. In Asia, China which has been shunned by investors for a year-long roared back to life, delivering a spectacular return of 11.51% in SGD terms as gleaned from chart 2. The rally which materialized against a backdrop where the economic outlook remains challenging is an encouraging sight. what drove the performance of Chinese equities stellar returns we opine, are 3 main factors: 1) marked improvements in economic fundamentals – the uptick in key economic data alongside easing of restrictive measures confirms that the worst is over for the omicron infested nation, 2) the divergence in policy stance in contrast to global peers – accommodative policy actions such as a reduction in Loan Prime Rate, tax rebates and infrastructure spending have been pledged by authorities and 3) further clarity on regulatory crackdowns which have spanned from last year.Chart 2: Chinese equity market is the stand out performer this month. Source: Bloomberg SectorAll sectors traded in negative territory in June, including the likes of the high-flying energy sector. In fact, out of the 11 sectors, the energy sector is one that experienced the largest decline, buoyed by a slew of positive (the OPEC+ declared production increases of 648k barrels/day in July and August) and negative (demand concerns stemming from China’s restrictive measures, a potential for another round of sanctions against Russian oil trades and considerations of a US energy exports limit) news headlines. On the other hand, the technology sector suffers yet another month of beating as market participants turn a tad more cautious of a high likelihood of another 75bps hike by the Feds in July to quell inflation.Chart 3: Oil Price volatility continues as investors assess the supply demand dynamics. Source: Bloomberg Chart 4: A lacklustre month of trading for all sectors. Source: BloombergOur thoughts aheadHistorically, a Fed hiking cycle has led to a recession occurring and one indicator that has been a relatively accurate indicator is the yield curve -in the past, an inverted yield curve where rates on short term government debt exceeds those on longer term debt has signaled that a recession may be round the corner. Nevertheless, we argue that a recession occurring in the US this year is unlikely due to strong economic fundamentals – sturdy labor market and strong balance sheets of corporates and households coupled with relatively resilient consumption will continue to drive growth this year. That being said, with inflation running at the fastest pace in 40 years and growth poised to slowdown sometime next year, we see a possibility that stagflation could occur. Bolstering our opinion is the fact that higher rates will deter growth and higher commodity prices will likely continue to persist due to years of underinvestment that will take an unpredictable amount of time to resolve – in essence, growth will slow, and inflation should remain persistently high, bringing about stagflation. Therefore, we believe that more pain could lie ahead for global markets as the stagflation narrative has yet to be priced in fully in our opinion.Access and invest in over 1000 funds distributed by Tiger Brokers. Go to the Quote section on the app and slide the top bar to Funds to explore the full suites of funds we have on Fund Mall!
Cash Plus is undergoing some transformation, and we expect an exciting new product and solution coming really soon! (Hint: August [Tongue] )We apologize that during this period, all Cash Plus Funds as well as selected Money Market Funds will be affected. We will be assisting affected customers in redeeming their holdings in these funds by 1st August 2022.For affected customers, we will be notifying you via email on 4 July 2022 your options and next steps, so do check your inbox.[Silence] [Heart] Once again, we are really sorry for the inconvenience caused, so we've prepared a special something to make it up to you. The details will be enclosed in the email sent to you, should you be affected by this makeover.*Psssst... Check out Fund Mall space in the coming weeks as Cash Plus and Fund Mall will be undergoing major transformation!Got a question？Email us at fundmallSG@tigerbrokers.com.sg
In the Unit Trust universe, there are thousands of funds from various fund providers investors can choose from to include in their portfolios. In this vein, we believe that many of our platform investors could perhaps be struggling to sieve out the funds that best suit their investment needs. Hence, we have come out with an article series “Fund House introduction”, to provide our investors with more insights into the various Fund Houses. In essence, the article series will eliminate the need for investor to go through the process of researching on which fund provider they should look to when investing in a specific geographical location, sector or even themes. Today, we will be interviewing @LionGlobalInvestors to find out more about their specialty for our platform investors’. An introduction to LionGlobal Investors@LionGlobalInvestors is a member of the Overseas-Chinese Banking Corporation (OCBC). Established in Singapore since 1986, LionGlobal Investors is one of the leading asset managers in Southeast Asia and have been helping their clients navigate the Asian markets for more than 35 years. As at 31 March 2022, the asset manager’s AUM stands at S$69.2 billion, which highlights the trust investors have placed on them to manage their monies. What can LionGlobal Investors bring to the table@LionGlobalInvestors has won more than 130 industry and peer review awards in 22 years, making them amongst the most trusted names in the fund management industry. Their accolades comes on the back of the firm’s investment teams in-depth knowledge and insights of markets in Asia gives them the edge to deliver investment solutions across equities, fixed income and multi assets strategies by combining fundamental top-down analysis of the macroenvironment with rigorous bottom-up analysis of the securities. Such holistic investment approach in their view can systematically identify opportunities to add value to their clients’ portfolios. Is there a fund that investors should invest into right now and why? In the team’s view, the investment outlook has become more challenging with the escalation of the Russian-Ukraine conflict, hawkish Fed and rising inflationary pressures. From an investment perspective, holding excess idle cash erodes one’s purchasing power especially after adjusting for inflation. On this note, investors have begun to realise the need to better preserve and grow their capital while waiting to enter the market. Baring such a concern in mind, the team recommends investors of Tiger Brokers to consider allocating some of their monies into is the $LionGlobal New Wealth Series - LionGlobal SGD Enhanced Liquidity A Acc SGD(SG9999019293)$ Fund.Read also: 3 Yield Enhancing Strategies to temporarily park your moniesThe fund is designed to preserve capital, enhance income and provide a high level of liquidity by investing in a portfolio of high quality debt instruments. The Fund’s approach to enhancing income while providing liquidity is to invest in a high quality portfolio of debt instruments diversified across varying issuers and tenures while maintaining a weighted average portfolio credit rating of A- and a weighted average duration of around 12 months. Access and invest in over 1000 funds distributed by Tiger Brokers. Go to the Quote section on the app and slide the top bar to Funds to explore the full suites of funds we have on Fund Mall!