Investment articles
THEMATICS| Software and Services in Singapore
The global software and IT services industry continues to experience unprecendented growth, driven by rapid advancements in cloud computing, artifical intelligence (AI), cybersecurity, and enterprise automation. Singapore's software sector is a key pillar of the digital economy, which was significantly contributed to GDP growth, outpacing overall economic growth: - SG software sector expanded at CAGR of 11.2% from 2018 to 2023 - Enterpise digital transformation is accelerating, with 94.6% of firms adopting at least one digital solution. - Cloud computing, AI-drives automation, and cybersecurity software are fast-growing sub-sectors.
THEMATICS| Fintech in Singapore
Singapore's stable political environment, robust infrastructure, and pro-business policies make it a leading Asian fintech hub, with over 2,100 MAS-regulated firms as of 2024. Supported by sound regulation, innovation-friendly policies, and a vibrant digital ecosystem, the sector thrives in aread like payments, wealth management, and digital banking, bolstered by strong venture capital funding and SGX access.
THEMATICS: Digital Economy - The case for AI
AI is revolutionizing industries, boosting global economies, and driving innovation while raising challenges in ethics, privacy, and workforce adaptation. How has AI transformed economies over the last few years, and what are the growth forecasts for AI-related industries?
The world we inhabit today is characterized by profound and major changes. Technological advancements, geopolitical shifts, and societal transformations unfold at an unprecedented scale. As investors, we find ourselves standing at the crossroads of transformation and uncertainty. In this article, we will explore the concept of thematic investing — a strategic approach that capitalizes on emerging trends — and discuss how to navigate today’s volatile investment landscape.
Divergence is back. Time for multi asset?
Increasing divergence in the performance of different regions, asset classes and sectors is broadening the opportunity set for multi asset strategies. The dynamic approach inherent in such strategies can make them an essential part of investors’ toolkit in what remains an environment of high macro uncertainty.
The Year Ahead | 2024
Driving in a storm is never easy. The driver needs to observe road conditions ahead, but not lose track of the direction to our destination. We can stop the car and wait for better weather, but this comes at the cost of trailing further behind in our investment objectives. The same applies to investing in 2024.
India Equity – A Bright Spot in Stormy Times
While the global economy navigated rising geopolitical risks, higher capital costs and greater growth volatility, India emerged with a stellar 2023 driven by strong earnings and bullish growth, putting it on the right track to become the third largest economy by 2030. With the secular cornerstones of India’s growth story remaining intact going in to 2024, we believe India will continue to be a bright spot in these stormy times.
Japan’s long-term value is getting unlocked
Renowned Investor Warren Buffet has spotted the long-term attractiveness of Japanese companies and where Buffet leads, other investors tend to follow. Yet, we think there’s more to Japan’s renaissance than relatively inexpensive valuations. We see that companies have become more receptive to corporate reform and shareholder engagement. These cultural and economic shifts seem to suggest Japan’s recent soaring equity market won’t be a flash in the pan.
Embracing resilience in an uncertain market
The current investment landscape is the epitome of contrast and duality, mirroring the challenges and opportunities investors face today. In this article, we delve deeper into the outlook for market volatility and how investors can find resilience amidst uncertainty, by maintaining a focus on downside protection.
The importance of income investing in turbulent times
Income investing remains relevant in the current market environment as a way to reduce the volatility of a portfolio. The availability of yield opportunities, particularly in fixed income sectors, have improved following a challenging couple of years.
Silver lining: how a recession may help economies and investors reset
The short-term data may look relatively benign, but we think recession is a very real prospect in the US and European economies over the coming months. Is that bad news for investors? While any downturn may create challenges in the short term, it may be a necessary way to tame persistent inflation - and offer potential new entry points for investors.
Asian Outlook: Resilience in Turbulent Times.
While there is still some debate over whether the US Federal Reserve will raise rates again, there is little doubt that they are reaching the end of their tightening cycle. Meanwhile in Asia, China economy needs more support but policy makers are not sure how far to go. Manu shares his outlook on Asia following Q2, 2023.
Over the past few years, the urgency of climate issues has significantly driven the development of carbon markets: companies have been increasingly regulated on their carbon footprints. Carbon credits represent a relatively new type of investment where investors would look for returns through the potential increase in carbon credit prices.
How Will Emerging Asia Fare in 2023?
Global monetary tightening is peaking, but sticky inflation means higher rates for longer.The US and Eurozone central banks have shown a continued hawkish tilt, even in the wake of the SVB collapse and Credit Suisse takeover. Clearly central banks believe that the financial stresses we have experienced recently can be managed.
Smart Investing: Fixed Maturity Products offer the potential to lock in high yields with low risk.
Sharp movement in yield curves has meant that sovereign bond issuers in major developed markets are paying more to borrow over the short term than over the long term. In effect, investors are getting paid more to take on less risk. The short-end of the yield curve has rarely been so exciting, and the repricing of assets has created an opportunity for investors.