Martin Lee @ Sg
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What & Where to Invest in 2009

Recently, I attended a talk organised by iFast: Where and What to Invest in 2009. The lineup of speakers include:

  • Aberdeen Asset Management Asia Limited – Asian Equities: Looking Beyond Uncertainty
  • DBS Asset Management – Global Bonds: Lessons from 2008; Opportunities in 2009
  • Deutsche Asset Management (Asia) – Small/Mid Cap Value Investing in Asia
  • Henderson Global Investors (Singapore) Limited – 2009 Property Outlook: Asia vs Global
  • UOB Asset Management – Global Equity Market Update – Searching for Diamonds in Rough Times
  • iFAST Research Team – Positioning Your Portfolio For 2009

I won’t be elaborating on the things covered by each individual speaker. Rather, I will list out some of the points that they mentioned. No prizes for guessing who said what.

  • In terms of global equity, to overweight the food, tobacco, telecomms, utilities and healthcare industries.
  • To underweight cyclicals like energy, materials (except gold and fertilizers). consumer discretionary (eg autos), and industrials.
  • Identify opportunities in emerging markets like Brazil and India.
  • Asian markets are trading at attractive valuations.
  • The beta of Asian small caps is higher than large caps. Therefore, when the market recovers, the small caps will also give a higher return.
  • Historical price-to-book of Asian small caps is from 1-3. Now, they are at about 1.3. PE is around 7.
  • An example of an undervalued stock is Chen Hsong (HK), which has a PE of 2.8 and price-to-book of 0.38.
  • As share prices get hit due to the bad economy, there will come a turning point (as prices drop) where valuations become good.
  • There is a 7-8% yield on global property stocks.
  • Investing in property shares is more liquid than investing in property. They will also recover before the physical real estate recovers.
  • S-Reits are providing an average yield of 11%. This is 9% higher than the long term government bond rate of 2%. It is also a big gap as historically, the yields were only like 3-6%.
  • In terms of portfolio asset allocation, to overweight equities.

Generally, all the speakers were (cautiously) optimistic about the sectors in which their funds were operating. 🙂

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2 comments
Worried says 10 years ago

Hi LionInvestor, according to the article above, it is sound to invest in properties. Recently, as we all know, many companies are having their rights issue and Bukit Sembawang is one of them. Considering that it’s not as ‘popular’ a stock as capitaland or capitamall trust, in your opinion, is this particular stock safe to invest in? I checked up the historical prices and strangely, even though we do not hear of Bt S’Wang Est in the news, its share price remains higher and more stable (even after announcing its rights issue) than the mentioned ‘popular’ ones. Thanks in advance!

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Tan says 10 years ago

Hi In-The-Know,

What are available now for SRS approved investments?

JTan

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