Where did the dragon go? A summary on the China market in 2023.

China's economy in 2023 showed resilience in the face of multiple challenges. GDP growth remained above 5%, driven by domestic consumption and government efforts to stabilize key sectors like property and manufacturing. However, the growth was slower than the historic highs China had previously experienced, likely contributing to the underperformance of the stock market. Several factors contributed to this moderated growth. Read more in the infographic below.  

Sign up for the China & Asia: Market Outlook for Q1 2024 event here: http://tinyurl.com/2cast5d7

 

Phillip Capital Management – Outlook 2021, CIO, Jeffrey Lee

Jeffery Lee, CIO of Phillip Capital Management Outlook for 2021. In it he has 3 Salient points: • Bright Outlook Ahead • Opportunities Amidst Crisis • Identifying superior growth To find out more, please read the full article.

Phillip Capital Management – 1H2020 Review of Phillip Singapore Real Estate Income Fund [INSIGHTS RELEASE]

Phillip Capital Management (S) Ltd recently published an article titled “1H2020 Review of Phillip Singapore Real Estate Income Fund”. In the article, we shared our insights on the actively managed Phillip Singapore Real Estate Income Fund that invests primarily in S-REITs, based on its performance in 1H2020 and further discussed about how the Fund is adjusting to the changes in the operating environment for S-REITs in light of the Covid-19 situation. To find out more, please read the full article.

Overcoming Volatility with Regular Savings Plan

Overcoming Volatility with Regular Savings Plans (RSP)

Other than asking what to invest in and how to invest, investors are also often concerned about having sufficient funds to invest and finding the right time to invest.

“As investors, there are times when we are fixated about timing the exact peaks and bottoms of the markets.”

However, timing the market is extremely difficult, especially during such volatile times.  

Time in the Market is Better than Timing the Market

Let us show you why time in the market is important with the example below: Chart 1: Performance of a $10,000 investment in S&P 500 from 3 Jan 2000 to 31 Dec 2019 Source: JP Morgan’s Guide to Retirement 2020 Assuming in year 2000, you had $10,000 to invest. If you stay fully invested in the S&P 500 for 20 years: However, if you miss the 10 best days in the S&P 500 during this 20-year period: While there is exposure to market risks, there are also growth opportunities which you can enjoy. Especially for long-term investors, staying engaged in the market will help you to compound your wealth over time.  

Don’t Let Emotions Affect You

“Then, there are emotions, and emotions are tricky.”

Decisions by emotions are usually impulsive and not based on information gathered. Investment decisions based on emotion – such as fear – is the main reason why many people are buying at market tops and selling at market bottoms instead. Remember, having personal feelings for your investment will not improve your winning probability, but a longer investment horizon will.  

So, what now?

Fret not!

“RSP(s) can help you to overcome these two stumbling blocks -

Time and Emotions.”

Instead of trying to perfectly time the market, you can have time in the market by adopting Dollar Cost Averaging (DCA). Diversify your risk by taking advantage of DCA, buy more unit trusts when prices are low; buy less unit trusts when prices are high. This enables you to smooth out the returns and also reduce the stress in investing as you will not be required to decide whether it’s the right time to invest.   Here’s how it works: Assuming Amy and Bob have $300 each to invest. Amy chooses to invest all $300 in January and receives 30 units at $10/unit. Bob however, chooses to invest $100 monthly into an RSP. Here’s the calculations for Bob’s investment:
January February March
Amount Invested (a) $100 $100 $100
Price/Unit (b) $10 $5 $8
Units Received (a÷b) $100 ÷ $10 = 10 $100 ÷ $5 = 20 $100 ÷ $8 = 12.5
 
Amy’s Investment Bob’s Investment
Unit Price: $10/unit Average Unit Price (Total Price ÷ No of transactions) $(10+5+8) ÷ 3 = $7.67/unit  
Cost of Investment: $10/unit Average Cost of Investment (Total Cost ÷ No of Units purchased) $300 ÷ 42.5 = $7.05  
Total Units Received: 30 Total Units Received: 42.5
  At the end of three months, Amy would have a total of 30 units at a cost of $10/unit. However, with DCA, the average unit price is $7.67. Therefore, Bob would have received a total of 42.5 units, at an average cost of only $7.05/unit. As prices fluctuate all the time, it is difficult to time the market. Adopting DCA as an investment strategy may potentially result in a lower cost per unit that is lesser than the average price per unit over time.   At PhillipCapital, the RSP begins from as low as $100*, allowing investors to start investing at affordable amounts. What’s more, you get to enjoy 0% Platform Fees, 0% Sales Charge and 0% Switching Fees when you trade via POEMS. Visit the Unit Trust Website to learn more about Unit Trusts, RSP and the choices available for you to choose from. Begin your investment journey with us today!

Phillip Capital Management – Being Nimble With Innovative Cash Management Solutions [INSIGHT RELEASE]

Phillip Capital Management (S) Ltd has published an article titled “Being Nimble With Innovative Cash Management Solutions”. Owing to the recent market volatility, we understand that a number of investors are sitting on the side-lines, with surplus cash idling in bank savings accounts. This phenomenon calls for a review of how investors should manage their surplus cash. In the article, one of the Top Financial Advisor-cum-Trading Representative in Phillip Securities Pte Ltd speaks about a more efficient parking facility for surplus funds that has benefited many of her clients. To find out more, please read the full article.

United SGD Fund End March 2020 Update

Join Joyce Tan, Co-Head of Fixed Income Asia & Singapore, as she updates on the Q1 performance of the United SGD Fund, and discusses the fund positioning and outlook amid COVID-19.   [embed]https://youtu.be/osLRUe7VYS8?list=PLUc9eMJO6adONVGitaO003aOjjoYNJJf5[/embed]

Phillip Capital Management – A Better Way To Manage Surplus Cash & Case Study Of A Government Agency [INSIGHTS RELEASE]

Phillip Capital Management (S) Ltd is pleased to inform you that Phillip Money Market Fund ("PMMF") has hit a significant milestone of reaching SGD $1 billion in asset-under-management ("AUM") during the first quarter of 2020. In the similar period, we have seen how markets went into risk-off mode and investors rushed for safety just as the COVID-19 escalated into a global pandemic. This gives us the indication that more investors are embracing PMMF for its high defensiveness. Their latest article is about the value that PMMF brings, with a past case study involving a government agency parking its excess daily cash flow into the fund. To find out more, please read the full article.

Phillip Capital Management – Abundance Of Liquidity To Create Opportunities In Tech Space Once Again

Phillip Capital Management (S) Ltd has recently published an article titled  “Abundance Of Liquidity To Create Opportunities In Tech Space Once Again”. The article seeks to answer some of these questions: To find out more, please read the full article.

Phillip Capital Management – Favourable S-REITs Yield Spreads Against 10-year SGS

Phillip Capital Management (S) Ltd has recently published an article titled  “Favourable S-REITs Yield Spreads Against 10-year SGS”. The article highlights some of the insights our fund managers gathered: To find out more, please read the full article.

Allianz AGI Insights (April 2020): How to rethink US allocations during the coronavirus crisis?

Allianz Global Investors Insights Please find Market Insights article from Allianz Global Investors below: Insights April 2020 - How to rethink US allocations during the coronavirus crisis   

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This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

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Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
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