Intrinsic Value
Table of Contents
Intrinsic Value
The intrinsic value of a commodity is an indication of its worth. This metric is determined by a subjective computation or a complicated monetary model. The intrinsic value of a commodity differs from its present price on the market.
In options trading, “intrinsic value” refers to the portion of an option’s total value that is determined by the relationship between the current market price of the underlying asset and the option’s strike price. It represents the immediate profit that could be obtained if the option were exercised immediately. Intrinsic value is specific to in-the-money options and is calculated differently for call options and put options.
What is intrinsic value?
Intrinsic value is an indicator of the quality of possession. This metric is determined using a measurable computation or a complicated financial framework. Intrinsic value differs from a stock’s present market value. Contrasting it to the present price, yet, might help traders determine if the item has been overpriced or inflated.
Cash flow is used in financial evaluation to calculate the intrinsic, or fundamental worth of a firm or share. In option costs, intrinsic worth is the disparity between the exercise price and the fundamental asset’s price at the moment.
There are several methods for determining intrinsic, or accurate, value.
- Most intrinsic value analyses make use of forecasted revenue analysis.
- Intrinsic value is a fundamental notion used by value traders to identify undiscovered investing possibilities.
- In options trading, the intrinsic cost is the variance between a security’s present worth and its option’s price at maturity.
- When the market price of an asset falls under its inherent worth, it might be an appropriate investment.
Understanding intrinsic value
There doesn’t exist a common criterion for determining an organisation or stock’s intrinsic value. Analysts in finance use basic and technical analysis to measure an asset’s real economic success in order to establish its inherent worth.
Researchers may develop valuation frameworks based on quantifiable, qualitative, and perceptive business aspects. However, the measure most commonly employed in intrinsic value computations involves discounted cash flows.
Typically, traders attempt to quantify a company’s intrinsic worth using a combination of qualitative and quantitative elements, but traders ought to keep in consideration that the outcome is still merely a projection.
Intrinsic value may be defined as the amount of money that a company is worth after selling all of its assets.
The formula of intrinsic value
The Asset-Based Ratio Technique is used for determining intrinsic value. For calculating the intrinsic value of equities, this approach employs a straightforward formula.
Intrinsic value = the sum of a company’s tangible and intangible assets – the liability.
Calculation of intrinsic value
Cash flows are predicted according to how an organisation could operate in the future utilising discounted cash flow, or DCF assessment. The organisation’s intrinsic value is subsequently determined by discounting those earnings to their current value. The discounted rate is frequently a safe rate of exchange, like the yield of a 30-year Government bond. Calculating by the weighted average cost of capital, or WACC of the corporation is another possibility.
The discounted cash flow formula for intrinsic value:
DCF = CF1/(1+r)1 + CF2/(1+r)2 + . . . + TV/(1+r)n
Where,
CF = the expected cash flow for a specific period
r = the discount rate
TV = the terminal value
n = the specific period
Importance of intrinsic value
- Investors can estimate the stock’s true value with the use of intrinsic value. Investors of value, who look for stocks that are undervalued or similar to cheap investment possibilities, may find this to be especially beneficial.
- It enables investors to determine whether the stock price of an organisation has been undervalued, reasonably priced, or overpriced concerning its present price. In the marketplace intrinsic value is crucial due to this sole reason.
- Additionally, it aids in determining if the shares are an excellent buy or an excellent bargain if compared with the company’s present market value. When a stock’s present value is less than its intrinsic worth, it is seen as an appealing buy.
Frequently Asked Questions
The intrinsic value of a company, stock, sum of money, or other thing is an estimated or approximated worth determined by fundamental study. Both physical and abstract components are present. Genuine worth, usually referred to as intrinsic value, cannot always match the current market price exactly.
The intrinsic value of a stock is a reflection of its true value. It is the greatest price at which an asset may be acquired while incurring a loss upon ultimate sale, to put it simply.
Risk managing financial flows is a highly individualised undertaking that combines the sciences with the arts. Risky statements of intrinsic value can be made using two main techniques. Utilising a rate of discount that incorporates a risk charge will properly discount the financial flows.
Another one of the issues with worth is that intrinsic computation is a highly individualised process. For estimating the revenue stream, a number of assumptions are used. Therefore, modifications in these presumptions will have an impact on the ultimate net current value.
The price of the shares of a corporation today represents its monetary value. The total of every asset the business has less than its obligations is its intrinsic value, on the other side. If an individual wants to know if a stock is valued too high or too low, you can consider other factors in addition to the price-to-book ratio.
A determination of an organisation’s true worth independent of the way the marketplace perceives it is known as intrinsic value. Investment in value seeks out businesses with better intrinsic values than their market values. They consider this to be a worthwhile investment.
Related Terms
- Protective Put
- Exotic Options
- Delta Neutral
- Moneyness
- Extrinsic Value
- Cash Secured Put
- Naked Put
- Call Options
- American Options
- Debit Spread
- Open interest
- Short Call
- Rho
- Put Option
- Premium
- Protective Put
- Exotic Options
- Delta Neutral
- Moneyness
- Extrinsic Value
- Cash Secured Put
- Naked Put
- Call Options
- American Options
- Debit Spread
- Open interest
- Short Call
- Rho
- Put Option
- Premium
- Out of the money
- Option Chain
- Long Put
- Long Call
- In the money
- Implied volatility
- Bull Put Spread
- Gamma
- Expiration date
- Exercise
- European Option
- Delta
- Covered Put
- Covered Call
- Call Option
- Bear Put Spread
- Bear Call Spread
- American Option
- Strangle
- Short Put
- Vega
- Underlying
- Time Value
- Time Decay
- Theta
- Strike Price
- Straddle
Most Popular Terms
Other Terms
- Bond Convexity
- Compound Yield
- Brokerage Account
- Discretionary Accounts
- Industry Groups
- Growth Rate
- Green Bond Principles
- Gamma Scalping
- Funding Ratio
- Free-Float Methodology
- Foreign Direct Investment (FDI)
- Floating Dividend Rate
- Flight to Quality
- Real Return
- Perpetual Bond
- Option Adjusted Spread (OAS)
- Non-Diversifiable Risk
- Merger Arbitrage
- Liability-Driven Investment (LDI)
- Income Bonds
- Guaranteed Investment Contract (GIC)
- Flash Crash
- Equity Carve-Outs
- Cost of Equity
- Cost Basis
- Deferred Annuity
- Cash-on-Cash Return
- Earning Surprise
- Capital Adequacy Ratio (CAR)
- Bubble
- Beta Risk
- Bear Spread
- Asset Play
- Accrued Market Discount
- Ladder Strategy
- Junk Status
- Intrinsic Value of Stock
- Interest-Only Bonds (IO)
- Interest Coverage Ratio
- Inflation Hedge
- Industry Groups
- Incremental Yield
- Industrial Bonds
- Income Statement
- Holding Period Return
- Historical Volatility (HV)
- Hedge Effectiveness
- Flat Yield Curve
- Fallen Angel
- Execution Risk
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Company Overview The Walt Disney Company is a leading global entertainment powerhouse with a diversified portfolio spanning content creation, streaming services, sports media, and theme park operations. The company's competitive advantage lies in its unrivalled intellectual property ecosystem, anchored by globally beloved franchises including Disney Animation, Pixar, Marvel, and Star Wars. This extensive IP portfolio enables Disney to maintain strong consumer engagement across multiple platforms, driving multiple and complementary revenue streams. Key Investment Highlights Disney's strategic positioning centres on three critical factors that underpin its investment appeal. First, the company benefits from a comprehensive entertainment ecosystem that leverages its iconic franchises to drive monetisation at scale, supporting sustainable long-term revenue growth. Second, Disney has successfully demonstrated its ability to adapt to changing consumer preferences by prioritising its direct-to-consumer streaming business while transitioning away from traditional linear television. Most notably, the streaming segment achieved profitability in the second half of 2024, marking a significant operational milestone. Primary Growth Driver: Experiences Segment The Experiences segment serves as Disney's primary growth engine, accounting for 45% of total revenue and consistently delivering high-single- to low-double-digit year-over-year growth. This segment encompasses theme parks, resorts, and cruise operations, benefiting from resilient attendance patterns and higher per-capita guest spending and effective yield management strategies despite competitive pressures in the entertainment and leisure industry. Streaming Success and Digital Transformation Disney's strategic pivot towards streaming has yielded positive results, with the direct-to-consumer business turning profitable. This achievement reflects the company's successful adaptation to evolving consumer viewing habits and validates its investment in digital content distribution. Achieving profitability positions Disney more competitively within an increasingly crowded global streaming landscape and strengthens the overall earnings profile of the group. Research Recommendation Phillip Securities Research has initiated coverage of The Walt Disney Company with an ACCUMULATE rating and a target price of US$130.00. The valuation methodology employs a discounted cash flow analysis utilising a weighted average cost of capital of 7.7% and a long-term growth rate of 3.5%. This recommendation reflects confidence in Disney's ability to leverage its diversified business model and capitalise on the continued global expansion of streaming services alongside the resilient post-COVID recovery of its experiences segment. Frequently Asked Questions Q: What is Phillip Securities Research's recommendation and target price for Disney? A: Phillip Securities Research initiated coverage with an ACCUMULATE rating and target price of US$130.00, based on a DCF analysis using a 7.7% WACC and 3.5% growth rate. Q: What makes Disney's intellectual property ecosystem unique? A: Disney possesses an unrivalled IP ecosystem anchored by major franchises including Disney Animation, Pixar, Marvel, and Star Wars, which supports strong consumer engagement across platforms and enables monetisation at scale. Q: Which segment is Disney's primary growth driver? A: The Experiences segment is Disney's primary growth driver, contributing 45% of revenue and delivering consistent high-single to low-double-digit year-over-year growth through theme parks, resorts, and cruise operations. Q: When did Disney's streaming business become profitable? A: Disney's streaming segment turned profitable in the second half of 2024, marking a significant milestone in the company's digital transformation strategy. Q: How has Disney adapted to changing consumer viewing habits? A: Disney has prioritised its direct-to-consumer streaming business while transitioning away from linear television, successfully adapting to evolving consumer preferences in entertainment consumption. Q: What factors support the Experiences segment's strong performance? A: The Experiences segment benefits from resilient attendance, higher per-capita guest spending, and effective yield management strategies, maintaining strong performance despite competitive pressures. Q: What is Disney's strategic positioning for long-term growth? A: Disney is well-positioned to monetise its IP at scale through continued global streaming expansion and the resilient post-COVID recovery of its experiences segment, underpinning long-term revenue growth. This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst. Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.
Protecting More Than Just Walls: Fire Insurance vs Home Insurance
As we begin 2026, it is timely to review the foundations of our finances, how we should protect our wealth for our loved ones, such as something as important as protecting the roof over their heads. In Singapore, we are fortunate to be largely free from natural disasters. As a result, homeowners assume that only the most basic coverage is sufficient. However, when it comes to safeguarding your home, understanding the differences between Fire Insurance and Home Insurance is paramount. For most homeowners who service a HDB or bank loan, fire insurance is mandatory and is typically included at the onset of loan application. Fire insurance primarily covers the structure of the property including walls, ceilings and built-in fixtures. In essence, it ensures the home can be restored to a habitable condition after a fire-related incident. However, fire insurance does not cover the contents of your home. This means that the items such as furniture, appliances, personal belongings and renovation works are typically excluded from coverage. While home insurance is not compulsory, it serves as a complimentary layer of protection providing a much broader scope of coverage, and helps to bridge the gaps that fire insurance does not address. Typically, home insurance includes coverage for household items, furniture, personal belongings, as well as renovation, clean-up and repair costs. Depending on the policy, it may also cover temporary accommodation expenses while your home is being repaired, along with other incidents such as theft, burst water pipes and other forms of accidental damage. Home insurance generally falls into two categories: “Insured Perils” and “All Risk”. As their names suggest, insured perils refer to specific events listed in the policy, such as fire, lightning, explosions, burst pipes, theft involving forced entry, and certain natural disasters. Any damage that does not arise from the events explicitly stated in the policy will not be covered. All risk plans, on the other hand, offer wider protection. They generally cover most scenarios unless specifically excluded in the policy terms. Due to the wider scope of coverage, all risk plans typically come with higher premiums. Beyond the type of coverage, it is also important to understand how claims are calculated. Home insurance policies typically fall under either an “Average Clause” or “First Loss” basis. For example, under the Average Clause, if the contents of your home amount to more than the insurance coverage, your claims may be proportionately reduced. In other words, being underinsured can result in lower claim settlements. With first loss plans, this penalty does not apply. The insurer will pay up to the insured amount stated in the policy, regardless of the total value of home contents. In summary, fire insurance ensures that the bare minimum is covered, while home insurance helps reduce financial strain when unforeseen incidents occur. As with all protection planning, the key lies in understanding what coverage you currently have, what it includes, and whether it still suits your needs. As you start 2026 on a positive note, it may be helpful to ask yourself: Do I know what my existing fire insurance covers? Do I have adequate protection for my home contents? Would taking up home insurance give me peace of mind? Protection planning is about making thoughtful decisions early, so that you are better equipped for whatever lies ahead. If you are unsure where to begin or would like a second opinion, we are always happy to help. Sometimes, a simple review can make all the difference. Wishing you a happy, healthy, and prosperous year ahead. Contributor: Claudia Tan Financial Services Director Phillip Securities Pte Ltd (A member of PhillipCapital) https://bit.ly/TTPclaudia Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.
Singapore Market Outlook 2026: Phillip Securities Forecast
Record-Breaking 2025 Performance Sets Stage for Continued Growth Singapore's equity market delivered exceptional returns in 2025, registering its highest gains in 16 years with a remarkable 22.7% increase, significantly outperforming the previous year's 16.9% gain. This outstanding performance has positioned the market favourably as investors look toward 2026 opportunities. Favourable Market Conditions Create Investment Opportunities Phillip Securities Research views 2026 as a particularly fertile environment for Singapore equities, supported by several key structural factors. Interest rates have declined to 1.20%, marking their lowest levels in three and a half years, creating more attractive conditions for equity investments. Additionally, the deployment of Singapore's S$5 billion Equity Development Programme (EQDP) is expected to generate an unprecedented liquidity premium specifically benefitting small and mid-cap stocks in the local market. Three Major Investment Themes Drive 2026 Strategy The research house identifies three primary themes that will shape Singapore's equity landscape in 2026. First, asset monetisation strategies are anticipated to generate stronger investment gains, with particular focus on major corporations including Singtel, Keppel, and Sembcorp Industries. These companies are positioned to unlock value through strategic asset optimisation initiatives. Secondly, the low interest rate environment creates benefits equities by making them more attractive relative to fixed-income alternatives while simultaneously reducing borrowing costs for companies. This environment is expected to particularly benefit Real Estate Investment Trusts (REITs) through enhanced dividend growth prospects. Third, a capital expenditure-driven earnings cycle is emerging across multiple industries. This cycle encompasses significant investments in artificial intelligence infrastructure, renewable energy projects, and domestic capital expenditure programmes. The healthcare sector presents additional opportunities through potential drug commercialisation and infrastructure development that could lead to a sector re-rating. Market Positioning and Outlook The convergence of these factors - record market performance, favourable monetary conditions, substantial government liquidity support, and multiple growth themes - creates a compelling investment case for Singapore equities. The research suggests that 2026 will benefit from this unique combination of supportive elements, positioning the market for continued strong performance across various sectors and market capitalisations. Frequently Asked Questions Q: How did Singapore equities perform in 2025? A: Singapore equities registered their highest gains in 16 years, with the market rising 22.7% in 2025, compared to 16.9% in 2024. Q: What makes 2026 favourable for Singapore equities? A: Three key factors create a fertile environment: interest rates at 3½-year lows of 1.20%, deployment of the S$5 billion EQDP creating liquidity premiums for small and mid-cap stocks, and multiple investment themes supporting the market. Q: What are the three major investment themes for 2026? A: The themes are asset monetisation (particularly from Singtel, Keppel, and Sembcorp Industries), low interest rates benefitting equities and REITs, and a capex-driven earnings cycle across AI, renewable energy, and domestic investments. Q: Which sectors are expected to benefit from the capex cycle? A: Multiple industries will benefit from AI investments, renewable energy projects, and domestic capex. Healthcare specifically could see re-rating through potential drug commercialisation and infrastructure development. Q: How will low interest rates impact different asset classes? A: Low interest rates make equities more attractive compared to other investments while reducing borrowing costs for companies and supporting dividend growth, particularly benefiting REITs. Q: What is the S$5 billion EQDP and how does it affect the market? A: The Equity Development Programme (EQDP) is a S$5 billion initiative whose deployment will create an unprecedented liquidity premium specifically for Singapore small and mid-cap stocks. Q: Which specific companies are highlighted for asset monetisation opportunities? A: Phillip Securities Research specifically identifies Singtel, Keppel, and Sembcorp Industries as companies positioned to outperform through asset monetisation strategies. This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst. Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.
ETF Market Analysis: Oil & Hang Seng Set for January Gains
Exchange-traded funds delivered mixed results in December, with notable divergence across asset classes. Gold-tracking ETF GLDM emerged as the top performer, gaining 2.3%, followed closely by Singapore equities ETF ES3, which advanced 2.2%. These gains contrasted sharply with the oil-tracking ETF XOP, which posted the month's worst performance, down 5.1%. Current Market Trends and Technical Analysis The current technical landscape reveals distinct patterns across major asset classes. Gold and Singapore equities have established clear upward momentum, positioning themselves favourably for continued strength. Meanwhile, several major indices and commodities are trading in a range-bound pattern. The S&P 500, US Treasury bonds, Oil, and the Hang Seng Index are all consolidating within defined trading ranges, suggesting potential breakout opportunities. Bitcoin stands out as the only asset class currently in a confirmed downtrend. January Outlook and Investment Opportunities Looking ahead to January, market conditions suggest selective opportunities for investors. Oil and Hang Seng Index ETFs are expected to outperform amid an otherwise lacklustre month for broader markets. This projection represents a notable shift for oil, which may recover from its poor showing in December. Conversely, investors should prepare for potential pullbacks in US Treasury bonds and gold ETFs, despite gold's strong December performance. The precious metal's recent gains may face near-term consolidation pressure. Market Consolidation Expected Several asset classes are likely to trade sideways in January. ETFs tracking the S&P 500, Bitcoin, and Singapore equities are expected to enter consolidation phases, suggesting limited directional movement despite varying underlying fundamentals. This mixed outlook reflects the complex interplay of global economic factors and technical conditions that continue to influence ETF performance across different asset classes and geographic regions. Frequently Asked Questions Q: Which ETFs performed best in December? A: Gold ETF GLDM was the top performer with a 2.3% gain, followed by Singapore equities ETF ES3 with a 2.2% increase. Q: What was the worst-performing ETF in December? A: Oil-tracking ETF XOP was the worst performer, declining 5.1% during the month. Q: Which asset classes are currently in uptrends? A: Gold and Singapore equities are currently showing upward momentum and established uptrends. Q: What assets are expected to outperform in January? A: ETFs tracking oil and the Hang Seng Index are expected to deliver gains in January. Q: Which ETFs may see pullbacks in January? A: US Treasury bonds and gold ETFs are likely to experience pullbacks despite gold's strong December showing. Q: What assets are in consolidation phases? A: The S&P 500, US Treasury bonds, Oil, and Hang Seng Index are currently in range consolidation, while Bitcoin is in a downtrend. Q: Which ETFs are expected to see sideways movement in January? A: ETFs tracking the S&P 500, Bitcoin, and Singapore equities are likely to experience price consolidation with limited directional movement. This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst. Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.
SATS Builds Global Platform to Navigate Market Volatility
Company Overview SATS Ltd is a leading aviation services provider specializing in ground handling and cargo operations across multiple international markets. Following its successful integration of Worldwide Flight Services (WFS), the company has evolved into a comprehensive global air cargo operator with an expanded network spanning multiple continents. Key Investment Highlights SATS demonstrates remarkable operational resilience by strategically redeploying capacity to high-demand routes during periods of trade volatility. The company's proactive business development efforts have resulted in significant new contract acquisitions, positioning it favourably in the competitive aviation services sector. The transformational integration of WFS has fundamentally changed SATS' business model, shifting from station-specific or project-based incremental wins to securing network-wide cargo handling mandates. This strategic evolution enhances the company's value proposition to major airline clients seeking comprehensive global solutions. Major Contract Wins Drive Growth SATS has secured several landmark contracts for FY26, highlighting its emergence as a significant global air cargo operator. Notable achievements include an overseas hub-carrier contract with Riyadh Air, a multi-station cargo contract with Turkish Airlines in the United States, and a contract renewal for cargo handling operations in the US and Europe with Saudia Cargo. These wins demonstrate the company's ability to compete successfully for large-scale, multi-regional mandates. Research Recommendation and Outlook Phillip Securities Research has downgraded SATS to a NEUTRAL recommendation, while raising the target price to S$3.84 from S$3.66. The higher target price reflects expectations that the removal of the De Minimis exemption will have less disruptive impact on SATS' cargo operations in the Americas, supported by rising demand from US domestic freight routes. The research firm has increased its FY26e PATMI forecast by 5.5% to S$249 million. Earnings stability is expected to be underpinned by approximately 20 contract wins and renewals secured in FY25 and FY26, with phased revenue recognition across long contract tenures providing operational stability and predictable cash flows. Frequently Asked Questions Q: What is SATS' current stock recommendation and target price? A: Phillip Securities Research has downgraded SATS to NEUTRAL with a raised target price of S$3.84, up from the previous target of S$3.66. Q: How has SATS' business model changed after the WFS integration? A: SATS has transitioned from station-specific or project-based incremental wins to securing network-wide cargo handling mandates, establishing itself as a global air cargo operator. Q: What major contracts has SATS won for FY26? A:Key FY26 wins include an overseas hub-carrier contract with Riyadh Air, a US multi-station cargo contract with Turkish Airlines, and contract renewal for cargo handling in the US and Europe with Saudia Cargo. Q: How does SATS maintain operational resilience during trade volatility? A: SATS maintains resilience through capacity redeployment to routes with higher demand amid trade volatility and securing new contracts through business development efforts. Q: What are the revised earnings forecast for SATS? A: The FY26e PATMI forecast has been raised by 5.5% to S$249 million. Q: How many contract wins and renewals has SATS secured recently? A: SATS has secured approximately 20 contract wins and renewals in FY25 and FY26. Q: Why was the target price increased despite the downgrade? A: The higher target price reflects expectations that the removal of the De Minimis exemption will be less disruptive to SATS' cargo operations in the Americas, supported by rising demand from US domestic freight routes. Q: What provides earnings stability for SATS going forward? A: Earnings resilience is underpinned by the contract wins and renewals, with phased revenue recognition across long contract tenures providing stability. This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst. Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. 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The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. 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Yoma Strategic Holdings Delivers Strong Property Performance in 1H26
Record Revenue Performance Yoma Strategic Holdings Ltd achieved its highest six-month revenue in 1H26, demonstrating significant operational improvements despite challenging market conditions. The company reported narrower losses of US$8.7 million compared to US$10.5 million in 1H25, marking a substantial improvement in overall financial performance. Property Development Drives Growth The standout performer in Yoma's portfolio was its property development division, Yoma Land Development, which delivered exceptional results with net profit doubling to US$15 million. This represents a remarkable 104% year-over-year jump in earnings, primarily driven by the success of Pun Hlaing Estate's landed projects. These premium developments have benefited from superior pricing power and healthy profit margins, positioning the division as a key growth driver for the company. Company Overview and Market Position Yoma Strategic Holdings operates as a diversified conglomerate with significant exposure to Myanmar's developing economy. The company's business portfolio spans property development, food and beverage operations, and mobile finance services. Through its property arm, Yoma focuses on developing high-quality residential and commercial projects that cater to Myanmar's growing middle class and expatriate community. Financial Resilience and Strategic Progress Despite a 9% currency decline, Yoma demonstrated remarkable operational resilience, growing core EBITDA by 50% year-over-year to US$20.5 million in 1H26. The company's ability to implement price increases in an inflationary environment has been crucial in maintaining and expanding operating margins across its business segments. The property development division continues to perform strongly, driven by its focus on projects with superior amenities and infrastructure. Meanwhile, the food and beverage segment has maintained stable earnings through strategic price adjustments to preserve margins. The mobile finance division is undergoing a strategic transition toward payments and deposit float as primary sources of profitability. Finance costs remain the company's most significant expense at US$18 million, down from US$20.1 million in 1H25. The company has initiated a deleveraging process to reduce interest expenses, supported by significantly improved operating cash flow, which climbed 150% year-over-year to US$16.9 million. With a current book value of S$0.189 per share, Yoma appears well-positioned for continued growth. Frequently Asked Questions Q: What were Yoma Strategic Holdings' key financial highlights in 1H26? A: Yoma reported its highest six-month revenue in 1H26 with narrower losses of US$8.7 million compared to US$10.5 million in 1H25. Core EBITDA grew 50% year-over-year to US$20.5 million despite a 9% currency decline. Q: Which business segment performed best during the period? A: Property development was the standout performer, with Yoma Land Development achieving a 104% year-over-year jump in earnings to US$15 million, driven by strong performance from Pun Hlaing Estate's landed projects. Q: How did Yoma manage to grow earnings despite currency headwinds? A: The company successfully implemented price increases across its business segments in response to inflationary pressures, which helped sustain margins and drive operating earnings growth. Q: What is driving the success of Yoma's property development business? A: The property development division benefits from projects with good amenities and infrastructure, particularly the premium-priced landed projects at Pun Hlaing Estate that enjoy healthy profit margins. Q: How is the company addressing its finance costs? A: Yoma has initiated a deleveraging process to reduce interest expenses. Finance costs decreased from US$20.1 million in 1H25 to US$18 million in 1H26, while operating cash flow improved significantly. Q: What is the current book value per share? A: The company's book value is currently S$0.189 per share. Q: How did operating cash flow perform in 1H26? A: Operating cash flow showed strong improvement, climbing 150% year-over-year to US$16.9 million in 1H26. Q: What strategic changes are occurring in the mobile finance business? A: The mobile finance division is transitioning toward payments and deposit float as primary sources of profitability, representing a strategic shift in its business model. This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst. Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. 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Buffer ETFs — What Are They and How Do They Work?
Introduction to Buffer ETFs Buffer ETFs are constructed using options and are also known as defined-outcome ETFs, offering investors a preset range of potential returns and risks over a typical one-year period. In other words, they’re designed to limit downside losses while still allowing you to stay invested in the market. Think of them as a way to smooth out volatility without completely giving up growth opportunities. First Trust Vest US Equity Buffer ETF - December 2025 (FDEC) Here’s a quick illustration: FDEC.US offers up to 14.76% potential upside while absorbing the first 10% of market losses. This allows investors to participate in potential growth with a built-in buffer. If SPY.US finishes the outcome period with returns between 0% and –10%, the investor would not incur losses (before fees). Overview of MAS SIP Requirements As Buffer ETFs use more complex structures, they fall under Specified Investment Products (SIPs). This means investors must demonstrate a certain level of knowledge before trading them. Since 2012, in alignment with the Monetary Authority of Singapore's efforts to enhance trading protections for retail investors, brokers are required to assess an investor's relevant knowledge and experience before permitting investments in SIPs. As a result, investors must complete the Customer Account Review (CAR) eligibility form before being allowed to invest in listed SIPs. If you’re new to these products, you can build your understanding by completing the SIP product knowledge module offered through the SGX Academy to become eligible to trade. How does Buffer ETFs work? Buffer ETFs achieve their defined outcomes through the use of options strategies, primarily by combining long and short options on market indices such as the S&P 500. By understanding how these option combinations work, you can better appreciate how the ETF is constructed and how its risk-reward profile is designed. This makes it easier to evaluate whether a Buffer ETF aligns with your investment goals, especially in volatile market conditions. First Trust Vest US Equity Buffer ETF - December 2024 (FDEC) The payoff structure of FDEC.US can be visualised via the risk-return chart available on the First Trust website, as well as those of other Buffer ETF issuers. The diagram illustrates how the downside buffer and upside cap interact to shape investor outcomes over the defined outcome period. According to the fund’s Objective/Strategy section, FDEC.US aims to deliver returns (before fees and expenses) that match the price return of the SPY ETF (which tracks the SP500 index), up to a predetermined upside cap of 14.76%, while providing a 10% buffer against the first losses of the reference asset for the outcome period from 23 December 2024 to 19 December 2025. Buffer ETFs, such as FDEC.US, typically reset annually. The options contracts that underpin the buffer-cap structure expire at the end of the outcome period, after which a new outcome period begins with newly defined cap and buffer levels, based on prevailing interest rates and market volatility. Investors can hold the ETF through the expiry of one period and into the next; however, it is essential to note that the cap and buffer terms may vary from one period to the next. Why Buffer ETFs Are Designed for Long-Term Investors Buffer ETFs work best when held for the entire outcome period, as this allows the built-in options strategy to fully deliver the intended balance between downside protection and capped upside participation. Entering or exiting mid-period can result in different outcomes from those originally designed. S&P 500 Historical Annual Returns (1927-2025)Source: Macrotrends Looking at the historical data, the S&P 500 has delivered strong average returns over time. While positive years are more common, market downturns can still occur, and the index is typically down by around 10% during negative periods. Therefore, Buffer ETFs may serve as a useful tool for managing downside risk, given the built-in buffer. The Drawbacks and Risks of Buffer ETFs 1. Limited Upside (Capped Returns) Buffer ETFs offer downside protection but cap upside potential. If the market rallies strongly, investors will not fully participate, resulting in an opportunity cost compared to traditional index ETFs. 2. Protection Only Works Within a Specific Outcome Period Each Buffer ETF operates within a defined outcome period (typically one year). The buffer and upside cap apply only when the ETF is held for the full period, due to the structure of the underlying options. Selling before the end of the outcome period may lead to unexpected losses or reduced gains. Buying mid-cycle may result in a partially utilised buffer or a lower effective cap. 3. The Buffer Can Be “Used Up” If the underlying index declines more than the stated buffer (e.g., a 10% buffer versus a 20% market drop), the ETF will begin to experience losses beyond the protected range. The buffer does not eliminate all downside risk. 4. Potential Underperformance in Flat or Choppy Markets When markets are sideways or mildly volatile, the combination of capped upside and embedded options costs can cause Buffer ETFs to underperform a standard index ETF tracking the same benchmark. 5. Higher Expense Ratios Buffer ETFs generally carry higher management fees, typically around 0.5% to 1%, compared with traditional S&P 500 ETFs, which often charge less than 0.05%. 6. Return Lag in Volatile Markets Because Buffer ETFs are constructed using options, sharp market movements can cause pricing lag due to changes in option premiums. For example, if the S&P 500 (SPY.US) rises 5% during a volatile period, a corresponding Buffer ETF might rise only around 4.2%, depending on where it is in its outcome period and how its options are priced. List of Buffer ETFs Buffer ETFs are designed to provide downside protection while allowing investors to participate in market gains, making them an attractive choice for those seeking a more controlled approach to equity investing. Below is a list of popular Buffer ETFs available in the market: Issuer Underlying Offered Buffer ETFs Ticker Code First Trust SPY Monthly 10% Buffer FJAN, FFEB, FMAR, FAPR, FMAY, FJUN, FJUL, FAUG, FSEP, FOCT, FNOV, FDEC iShares IVV Quarterly 10% Buffer STEN, TEND, TENM, TENJ First Trust QQQ Quarterly 10% Buffer QMAR, QJUN, QSPT, QDEC First Trust EFA Quarterly 10% Buffer YMAR, YJUN, YSEP, YDEC These ETFs are suited to investors seeking strategic market exposure with controlled risk, particularly in volatile market environments. Should You Invest in a Buffer ETF? Buffer ETFs can be an attractive choice for investors looking to gain exposure to equity markets while actively managing risk. These ETFs offer built-in downside protection, which can help mitigate the impact of moderate market declines and provide clearly defined potential gains and losses over a fixed outcome period. They are particularly suited for investors with a tactical investment approach who intend to hold the ETF for the full outcome period to fully benefit from the buffer structure. By tracking major indices such as the S&P 500 or the Nasdaq 100, Buffer ETFs also offer diversified exposure to both US and international equities. However, investors should be aware that the upside returns are capped, meaning they may miss out on large market rallies, and that early exits or mid-cycle purchases can reduce the effectiveness of the protection. In addition, higher expense ratios and embedded option costs can slightly impact returns compared with traditional ETFs. Overall, Buffer ETFs are best viewed as a complement to a broader investment portfolio, offering a balance between growth potential and controlled downside risk, particularly in uncertain or volatile market conditions. Start Your Global Investment Journey Today! Open an account with POEMS and take the first step toward a diversified, globally-focused portfolio! For more information about trading on POEMS, you can visit our website or reach out to our Night Desk representatives at 6531 1225. Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. 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Oracle Corporation Raises FY27 Revenue Guidance by $4 Billion Amid Strong Cloud Growth
Oracle Corporation, a leading enterprise software and cloud computing company, has demonstrated solid performance in the first half of fiscal 2026, with revenue and adjusted profit after tax and minority interests meeting expectations at 47% and 43% of full-year forecasts respectively. The technology giant specialises in database management systems, cloud infrastructure services, and enterprise software solutions, positioning itself as a comprehensive provider in the rapidly evolving artificial intelligence and cloud computing landscape. Strong Performance Driven by Cloud Infrastructure Demand The company's financial results showcase robust momentum, with group revenue climbing 14% year-over-year, primarily propelled by Oracle Cloud's impressive 34% annual growth. This expansion reflects the increasing enterprise demand for cloud infrastructure services as organisations continue their digital transformation initiatives. Additionally, Oracle recorded a substantial $2.7 billion pre-tax gain from divesting its interest in Ampere Computing, further strengthening its financial position. Raised Capital Expenditure and Revenue Projections Oracle has significantly increased its capital expenditure forecast to $50 billion for FY26, representing a $15 billion upward revision from the first quarter projection. This substantial investment reflects the company's commitment to expanding its data center infrastructure to meet growing demand. The company has also raised its FY27 revenue guidance by $4 billion, supported by higher remaining performance obligations this quarter. For the third quarter of FY26, Oracle projects group revenue growth of 16-18%, with Oracle Cloud expected to accelerate dramatically to 37-41% year-over-year growth, compared to 23% in the previous year. Adjusted earnings per share are anticipated to increase 16-18% to $1.70-1.74. Investment Outlook and Strategic Position Phillip Securities Research maintains a BUY recommendation with a slightly adjusted DCF target price of $344, down from the previous $350, primarily due to the increased capital expenditure requirements. The research firm expects performance acceleration in the second half of FY26 as additional data centres become operational. Oracle's strategic positioning as a specialized Oracle Cloud Infrastructure provider and comprehensive AI solutions company, backed by a significant remaining performance obligations backlog, supports the positive outlook. The company's potential upside depends largely on the successful execution of multi-billion-dollar artificial intelligence deals. Frequently Asked Questions Q: What were Oracle's key financial highlights for the first half of FY26? A: Oracle's 1H26 revenue and adjusted PATMI were within expectations at 47% and 43% of FY26 forecasts respectively. Group revenue rose 14% year-over-year, led by Oracle Cloud's 24% growth, and the company recorded a $2.7 billion pre-tax gain from selling its Ampere Computing interest. Q: How much has Oracle raised its FY27 revenue guidance? A: Oracle has raised its FY27 revenue guidance by $4 billion following higher remaining performance obligations this quarter. Q: What is Oracle's current capital expenditure projection for FY26? A: Oracle has increased its FY26 CAPEX projection to $50 billion, which is $15 billion higher than the 1Q25 forecast Q: What growth rates does Oracle expect for Q3 FY26? A: For 3Q26, Oracle expects group revenue growth of 16-18%, with Oracle Cloud accelerating to 37-41% year-over-year growth, up from 23% a year ago. Adjusted EPS is projected to rise 16-18% to $1.70-1.74. Q: What is Phillip Securities Research's recommendation and target price for Oracle? A: Phillip Securities Research maintains a BUY recommendation with a DCF target price of $344, down from the previous $350 due to increased CAPEX requirements. Q: What factors support Oracle's positive outlook according to the research? A: Oracle's position as a niche Oracle Cloud Infrastructure provider and full-stack AI provider, supported by a significant remaining performance obligations backlog, supports the bullish outlook. The company is expected to benefit from acceleration in 2H26 as more data centers come online. Q: What could drive potential upside for Oracle's stock? A: Potential upside for Oracle hinges on faster execution of multi-billion-dollar artificial intelligence deals, which could accelerate the company's growth beyond current projections. This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst. Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. 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