China scraps foreign investment limit in stock, bond markets

(Spet 11): China removed one more hurdle for foreign investment into its capital markets almost 20 years after it first allowed access.

Global funds no longer need approvals to purchase quotas to buy Chinese stocks and bonds, the State Administration of Foreign Exchange said in a statement on Tuesday. It removed the US$300 billion ($414 billion) overall cap on overseas purchases of the assets, about two-thirds of which remain unused.

Pension funds in growth markets flock to equities, Mercer says

(June 11): Pension funds in growing economies in Asia, Latin America and the Middle East have a sharply higher percentage of assets parked in stocks, just at a time when trade tensions threaten to derail markets.

c in 14 geographies now allocate 40% of their assets to equities, an 8 percentage-point climb over the past five years, according to a Mercer LLC survey released Tuesday that canvassed government, corporate and mandatory pension funds with almost US$5 trillion ($6.8 trillion) in assets under management. That compares with about 25% for pension funds in Europe.

Why 2019 might be a better year for investors: Schroders

After the disappointment of 2018, Schroders chief executive Peter Harrison rounds up the factors its fund managers think could lead to a brighter year ahead.

SINGAPORE (Jan 2): 2018 has been a disappointing year for most investors. Almost all markets, both stocks and bonds, fell in value last year, under pressure from rising interest rates, political developments such as Brexit, and the trade dispute between the US and China. With hindsight, markets were priced for perfection at the start of the year and were vulnerable to bad news - and there has been plenty of that.

Singapore investors confident in local investment opportunities, but prefer international stocks: Legg Mason survey

SINGAPORE (Nov 20): Nearly half of Singaporean investors believe their own country presents the best investment opportunities in the near-term, ahead of other popular investment locations such as China and the US.  

This is according to asset management firm Legg Mason based on the findings of its Global Investment Survey 2018, which tracks investor sentiment and behavior across 17 markets worldwide.

Former Fed Chair Alan Greenspan sees bubbles in stocks and bonds

NEW YORK (Feb 1): The man who made the term “irrational exuberance” famous says investors are at it again.

“There are two bubbles: We have a stock market bubble, and we have a bond market bubble,” Alan Greenspan, 91, said Wednesday on Bloomberg Television with Tom Keene and Scarlet Fu. Greenspan, who led the Federal Reserve from 1987 until 2006, memorably used the phrase to describe asset values during the 1990’s dot-com bubble.

Singapore's stock market finally getting some love again

SINGAPORE (Nov 10): Singapore’s stock market is finally getting some love again.

With almost two months of the year to run, the Straits Times Index has already notched up its best annual performance since 2012 amid an economic recovery and a stronger currency.

The city-state’s equity funds received some US$2 billion in 10 straight months of inflows, the most annually since 2007, according to data from asset allocation tracking company EPFR Global. That’s more than the combined inflows of the past five years and the longest monthly rally since mid-2013, the data show.

10 stocks with the highest returns since The Edge Singapore first went to print

SINGAPORE (Oct 6): The 800th issue of The Edge Singapore this week features 10 companies with the highest returns since our first issue was published in March 2002.

Nine of them were controlled by entrepreneurs and business families who were willing to take risks, but not overtly pushing for growth.

The exception was vehicle inspection service provider Vicom, a subsidiary of land transport giant ComfortDelGro Corp, whose largest shareholders are institutional investors.

Employ a small-cap value strategy

“Invest only in small-capitalisation value stocks. Don’t invest in blue chips. Don’t invest in growth stocks.”

This advice might alarm you. But if you want the best long-term returns, you have to invest in value small caps. To build your nest egg quickly, you need to defy convention.

What are small-cap stocks? They are companies with small market capitalisation. Market cap is the market value of all the outstanding shares. You get this by multiplying all outstanding shares with the share price.


Stocks have gotten ‘less attractive’ but still better than bonds: Buffett

From Bloomberg

(Aug 31): Warren Buffett, the billionaire chairman and chief executive officer of Berkshire Hathaway Inc., said the rally in markets over the last several years has made it harder to find bargains, but that stocks remain his choice over bonds.

When asked why cash has been piling up at Berkshire, he told Bloomberg Television’s David Westin, “It tells us stocks aren’t as cheap as they’ve been most of the time.” Buying shares after the 2008 financial crisis, Buffett said, was like “shooting fish in a barrel.”


How to build a no-fuss portfolio with ETFs

(Aug 14): Low-cost exchange-traded funds are a quick and easy way to diversify one’s investments. But is it possible to build a portfolio exclusively with these instruments? Phillip Securities Research analyst Pei Sai Teng thinks so. Pei and his team have curated several model ETF portfolios with a mix of bonds, stocks and gold. The percentage allocated to each asset class varies depending on the investor’s risk appetite. The conservative version has an allocation of as much as 60% to short-term, sovereign and corporate bonds. The aggressive version has a higher allocation to stocks.

Be informed of the stories that matter


Be informed of the stories that matter