Global Investments: Daiwa issued an unrated report on Global Investments (GIL) today. GIL is a mutual fund company with focus on income generation. As of 31 March 2015, listed equities, bonds and cash & other net assets account for around 69% of its total asset portfolio. The total carrying value of these listed-assets is $218m, representing 104% of GIL’s market capitalization. The market is essentially ascribing a 0 value to its unlisted loan portfolio & securitization and operating lease (Ascendos) assets, investments which had generated $12.1m in dividend and interest income for 2014.
GIL’s listed equity portfolio has 18% exposure to the Shanghai Composite Index and 51% to the Hang Seng Index, with total value of $72m. Despite strong performance of global financial markets recently, management remains mindful of the heightened volatility and adopts an active management strategy in a bid to increase shareholder return through generation of alpha.
Based on its latest closing price of $0.151, the stock is yielding 10% at 2014’s distribution rate of $0.015/share. GIL also recently provided dividend guidance of SGD0.0075 for 1H15, to be declared in August 2015. The stock is trading at a trailing 2014 PER of 8.6x and PBR of 0.7x.
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