Havenport Investments

18/10/2021

At our Micro Symposium last week, we were joined by our partners from Blackrock, JP Morgan Asset Management and UOB Asset Management to discuss investing in China. China has dominated the headlines in 2021 for all the wrong reasons. Policy risk is heightened at present, and a few sectors have been targeted: those with inappropriate use of market power or data, and others who are highly leveraged. Policy changes is not something unexpected with the CCP, and so is market volatility. However, there remains swathes of opportunities related to China. Import substitution and technological self-sufficiency provides growth opportunities to local Chinese companies, while valuations look attractive in various segments of the market, in both equity and fixed income.

We will be discussing this more at our Advisor Teach-In Session on our newly launched Thematic Managed Account (Funds) this Thursday 3.30pm. Contact us for more details.

16/09/2021

13/08/2021

Join us to find out more on Havenport Managed Account of Fund. We look forward to seeing you at the event!

Register Now:
https://bit.ly/3m1aLUq

22/07/2021

Inflation continues to run hot in developed markets, with the US reporting 5.4% y/y inflation in June 2021. Housing price inflation and supply chain disruptions continue to persist. Should investors expect inflation to remain sticky? How should we respond if inflation remains above trend?

Join us and our panel of experts at our Micro Symposium next week to find out more as we discuss this important topic!

Register Now:
https://forms.gle/fi32up7bbEfLndqW7

19/07/2021

We look forward to seeing you at the event!

Register Now:
https://forms.gle/fi32up7bbEfLndqW7

07/07/2021

The plunge in share price of Didi, China’s equivalent of Uber ride-hailing services, has again brought a stark reminder of the policy risks when investing in Chinese shares. This, together with the increased Chinese regulatory scrutiny in Chinese tech-related companies, is likely to embed a valuation discount on Chinese stocks listed in the US market.

Such vagaries in policy decisions by the Chinese regulators are nothing new. The history of investing in stocks of emerging markets and economies is littered with a multitude of examples.

As we have highlighted in our recent webinar on Global Tech-Celeration, one should look beyond the obvious metric of PE multiples when examining tech stocks. Such are the times when buying opportunities are found when other stocks are unfairly tainted by the same brush.

This is where special situations call for alert minds and well grounded research to capture these unique opportunities.

18/06/2021

Here are the quotable quotes to inform your investment outlook on China and tech, from our Forum "The Promise and Perils of Tech-Celeration" held on 8 June, hosted by SGX Academy

17/06/2021

The Made in China 2025 plan was developed to transform China as a low-end manufacturer into a high-end producer by 2025. Thomas Kwan, CIO Harvest Global Investments, one of the Forum panelists, noted that the progress has been phenomenal: China’s internet pe*******on, patent applications and numbers of industrial robots have all increased. Chinese products and technologies that were developed for the domestic market are now exported wholesale globally.

China continues to make large investments in the technological space, with R&D spending rising 10% last year to US$378 billion. It is an understatement to say that China will play a huge role in global tech-celeration.

15/06/2021

While the promise of tech is exciting, there are perils that investors must be aware of. What could potentially derail the tech-celeration? Here are the views of two panelists from Havenport’s (SGX-hosted) public forum last week:

There has been a rapid monetary growth in the US, with the money supply (M2) rising more than 20%, which will lead to inflation this time, unlike in 2008/09. The normal consequence of inflation is a global tightening of liquidity conditions, which is bad for tech. The tremendous era of tech-celeration is about to get a bit of a reality check once interest rates rise significantly,
--PK Basu, Founder, Real Economics

Contrary to the popular expectation prior to the election of President Biden, geopolitical tension between China and the US has not eased. It has in fact been ratcheted up further. Unlike in the past, we are seeing greater innovation coming out of China, some of which are born out of protectionism. Apps like TikTok are now a global phenomenon, and have several million users in the US alone. China has pushed the US to the edge, and the US has no other choice but to make a stand. The US will attempt to ensure that China abides by the global rules and regulations moving forward, especially on the technology front.
-- Mitchell Kim, Equity research analyst

11/06/2021

During our Forum, we discussed the Promise of Tech-Celeration within the context of global markets.

Tech companies continue to see expansion of their addressable market. As we enter the Industry 4.0 era, tech will increasingly be a part of every business, manufacturing and production process, with applications in distance learning, remote medicine, transportation, fast retailing and more. The transformation that we have witnessed for the retail industry via the online e-commerce platforms will be duplicated in other sectors, which will see productivity boosted because of 5G, IoT, AI, VR, AR and robotics. Tech sector valuations (as a whole) are reasonable when considering the growth rates, even though a substantial portion of their free cash flow is reinvested into new businesses.
– Mitchell Kim, equity research analyst

The growth of the Technology sector has a long-term trend. In the financial markets, technology stocks encapsulate Hardware, Software, and Semiconductors, as well as the adjacent industries of e-commerce, Internet media services, and entertainment content. The combined market capitalisation of these two sectors has expanded from US$7 trillion to US$40 trillion in a decade. These two growing aspects of financial markets has created a heightened focus on the technology sector, and have come together to provide more choice for investors.
– Geoff Howie, Market Strategist, SGX