Upload File

guinness atkinson asia pacific dividend builder fund managers monthly … · 2017-11-15 ·...

  • Home
  • Documents
  • Guinness Atkinson Asia Pacific Dividend Builder Fund Managers Monthly … · 2017-11-15 · Guinness Atkinson Asia Pacific Dividend Builder Fund ... Asia Pacific Dividend Builder
4
Guinness Atkinson Asia Pacific Dividend Builder Fund Managers Monthly Update – November 2017 Fund & Market • The Fund performed well in October and was a little ahead of the MSCI AC Pacific ex Japan Index which rose 3.79% in USD terms and outperformed the US, UK, Europe and non-Asian Emerging markets, as measured by their respective MSCI indexes. • This makes Asia comfortably the best performing region this year and yet, as discussed below, valuations are still attractive. • Technology, Healthcare and Consumer staples were the outperformers over the month while Telecom continued its long-term weakness, followed by Real Estate and Consumer Discretionary. On a country basis, South Korea, Taiwan, Singapore and China were outperformers, as measured by their respective MSCI country indexes. • Technology stocks which had been weak in September after the iPhone launch recovered in October with more positive noises coming from Apple about likely demand for the iPhone X. This could have been mere ’puff’ from the company were it not also for stories in the Taiwanese press that Apple has asked component suppliers to double their shipment volumes for the rest of the year. • The valuation of the portfolio is still at a discount to the market on a Price/Earnings basis trading on 13.1x 2017 and 12.0x 2018 estimated earnings compared to the MSCI AC Pacific ex Japan Index which is trading on 14.5x and 12.6x respectively. • Asian markets, as measured by MSCI AC Pacific ex Japan, are still at a 26% discount to MSCI World on a reported earnings basis from a 30% discount at the start of year (as compared to the long run average discount since Jan 1995 of 23%) - but this not much of a reduction in the discount given the level of their outperformance this year. The reason? Reported profits in Asia have been growing faster than in developed markets. Events in October • China had its 19th Party Congress; at the end of which, the new leadership line-up was revealed. President Xi Jinping and his deputy Li Keqiang remain in place, as expected, while the five other members of the Standing Committee retired and were replaced. Importantly, all of these need to retire in five years’ time and no candidates to succeed President Xi in 2022 were brought forward. Thus, we must conclude it is probable Xi will stay on beyond his ‘normal’ 10-year term. This is not necessarily a bad thing and investors should most likely welcome it. There are some tough reform decisions ahead with possibly powerful opposition from vested interests. Political strength will be needed if they are to be carried through, and this President Xi undoubtedly possesses. • Japan’s Prime Minister Abe secured a two-thirds majority in the lower house of Parliament in the snap election. • India announced a significant recapitalization plan for its state-owned banks ($32.4bn/1.3% of GDP) over the next two years in response to the bad debt issues facing the sector. • South Korea is mending relations with China after a year-long tussle over the country’s deployment of THAAD, an anti-missile missile system to counter the threat from North Korea. Trade and business relations have been significantly affected over the past 12 months. The Korean Won was the strongest currency in the region up 2.4% against the dollar.

Upload: hoangnhu

Post on 11-Jun-2018

216 views

Category:

Documents


0 download

Report

TRANSCRIPT

Page 1: Guinness Atkinson Asia Pacific Dividend Builder Fund Managers Monthly … · 2017-11-15 · Guinness Atkinson Asia Pacific Dividend Builder Fund ... Asia Pacific Dividend Builder

GuinnessAtkinsonAsiaPacificDividendBuilderFundManagersMonthlyUpdate–November2017

Fund&Market

• TheFundperformedwellinOctoberandwasalittleaheadoftheMSCIACPacificexJapanIndexwhichrose3.79%inUSDtermsandoutperformedtheUS,UK,Europeandnon-AsianEmergingmarkets,asmeasuredbytheirrespectiveMSCIindexes.

• ThismakesAsiacomfortablythebestperformingregionthisyearandyet,asdiscussedbelow,valuationsarestillattractive.

• Technology,HealthcareandConsumerstaplesweretheoutperformersoverthemonthwhileTelecomcontinueditslong-termweakness,followedbyRealEstateandConsumerDiscretionary.Onacountrybasis,SouthKorea,Taiwan,SingaporeandChinawereoutperformers,asmeasuredbytheirrespectiveMSCIcountryindexes.

• TechnologystockswhichhadbeenweakinSeptemberaftertheiPhonelaunchrecoveredinOctoberwithmorepositivenoisescomingfromAppleaboutlikelydemandfortheiPhoneX.Thiscouldhavebeenmere’puff’fromthecompanywereitnotalsoforstoriesintheTaiwanesepressthatApplehasaskedcomponentsupplierstodoubletheirshipmentvolumesfortherestoftheyear.

• ThevaluationoftheportfolioisstillatadiscounttothemarketonaPrice/Earningsbasistradingon13.1x2017and12.0x2018estimatedearningscomparedtotheMSCIACPacificexJapanIndexwhichistradingon14.5xand12.6xrespectively.

• Asianmarkets,asmeasuredbyMSCIACPacificexJapan,arestillata26%discounttoMSCIWorldonareportedearningsbasisfroma30%discountatthestartofyear(ascomparedtothelongrunaveragediscountsinceJan1995of23%)-butthisnotmuchofareductioninthediscountgiventheleveloftheiroutperformancethisyear.Thereason?ReportedprofitsinAsiahavebeengrowingfasterthanindevelopedmarkets.

EventsinOctober

• Chinahadits19thPartyCongress;attheendofwhich,thenewleadershipline-upwasrevealed.PresidentXiJinpingandhisdeputyLiKeqiangremaininplace,asexpected,whilethefiveothermembersoftheStandingCommitteeretiredandwerereplaced.Importantly,alloftheseneedtoretireinfiveyears’timeandnocandidatestosucceedPresidentXiin2022werebroughtforward.Thus,wemustconcludeitisprobableXiwillstayonbeyondhis‘normal’10-yearterm.Thisisnotnecessarilyabadthingandinvestorsshouldmostlikelywelcomeit.Therearesometoughreformdecisionsaheadwithpossiblypowerfuloppositionfromvestedinterests.Politicalstrengthwillbeneedediftheyaretobecarriedthrough,andthisPresidentXiundoubtedlypossesses.

• Japan’sPrimeMinisterAbesecuredatwo-thirdsmajorityinthelowerhouseofParliamentinthesnapelection.

• Indiaannouncedasignificantrecapitalizationplanforitsstate-ownedbanks($32.4bn/1.3%ofGDP)overthenexttwoyearsinresponsetothebaddebtissuesfacingthesector.

• SouthKoreaismendingrelationswithChinaafterayear-longtussleoverthecountry’sdeploymentofTHAAD,ananti-missilemissilesystemtocounterthethreatfromNorthKorea.Tradeandbusinessrelationshavebeensignificantlyaffectedoverthepast12months.TheKoreanWonwasthestrongestcurrencyintheregionup2.4%againstthedollar.

Page 2: Guinness Atkinson Asia Pacific Dividend Builder Fund Managers Monthly … · 2017-11-15 · Guinness Atkinson Asia Pacific Dividend Builder Fund ... Asia Pacific Dividend Builder

GuinnessAtkinsonAsiaPacificDividendBuilderFundManagersMonthlyUpdate–November2017

• HappeninginNovember:USPresidentTrumpembarksonatwelve-daytourofAsiaduringwhichhewillmeetChina’sPresidentXi.

Outlook

• WeexpecttoseeinterestratesintheUSandUKriseonlymoderatelyinthecomingtwelvemonths.

• ThecapitalexpenditurecycleisshowingsignsofpickingupwhichissupportiveforAsia.• China’seconomicgrowthlookslikelytocomeinaheadofmarketforecastsforthisyearbutinthe

monthsaheadweexpectintensifyingeffortstotackleleverageinthefinancialsystem,debtinthecorporatesectoraswellaseffortstotaketheheatoftherealestatemarket.Allwillhaveadepressingeffectoneconomicgrowth.

• WeremainpositivebecausewearefocusedoncompaniesthatdonotrequirepolicydrivengrowthtoturnaprofitandtheportfolioistradingatadiscounttoAsianmarkets,asmeasuredbytheMSCIACPacificexJapanIndex.

Stocksnews

ThishasbeenagoodperiodforcompanyresultsoverthepastmonthandintoNovember.Twenty-onecompanieshavereportedquarterlyorhalf-yearlyresults.Sixcompaniesmissedtheirestimatesbutonlyone,EliteMaterialhasseenanadversemarketreaction.DBSGroup,Singapore’slargestbank,recordedthewidestmiss,butthiswastheresultofmanagement’sdecisiontorecognizeallproblemloansintheoilandgassegmentoftheloanbookandsetasideadditionalprovisions.Themarketwelcomedthemovewhichwasaccompaniedbypre-provisionoperatingprofitgrowthdrivenbyawideningofthenetinterestmarginandimprovedcostefficiency.

EliteMaterialhasa50%shareinlaminatesforrigidprintedcircuitboards(PCB)usedinsmartphones.Wehavebeenlookingforthesuccessinsmartphonestobereplicatedintheserver/networkingsegmentandthecompanyisontracktodothiswiththe24%revenuegrowthobservedinthisareain2016–itnowcontributesoveraquarterofallrevenue.However,intheshorttermthereareconcernsaboutsmartphonemarketsharelossastheiPhonemigratestoadifferenttechnology.Webelievethatthisconcernhasbeenoverplayedandwhiletherecentquarter’sresultswerebelowestimates,non-Applesmartphoneswerebiggercontributorsthanexpected.Thereisstillplentytogoforinnon-iPhonesmartphones,serversaswellasthepossibilityofrecoupingiPhonesharesowehavebeenaddingtotheposition.

WewroteaboutAsustekatthehalfyearstageasoneofourweakerpositions.Thecompanyisundergoingare-organizationofitsoperationsasthePCbusinessremainsunderpressureforweakerdemandandintensifiedcompetitionwhilethesmartphoneareahasyettoreachadequatescale.Wewerehappytoseetherefore,thatitsthirdquarterresultscameinaheadofthehighestestimates.GrossmarginwasbetterthanexpectedandthecompanyhasbeenhelpedonthePCsidebothbyreducedpricecompetitionfromHPandalsobystrongerdemandformotherboardsandgraphicscards.Thecompanystillhasawaytogotoresolvethechallengesitfacesbutweareencouragedtoseeintheseresults,thequalitiesthatdrewustothiscompanyinthefirstplace.

Page 3: Guinness Atkinson Asia Pacific Dividend Builder Fund Managers Monthly … · 2017-11-15 · Guinness Atkinson Asia Pacific Dividend Builder Fund ... Asia Pacific Dividend Builder

GuinnessAtkinsonAsiaPacificDividendBuilderFundManagersMonthlyUpdate–November2017

StShineOpticalisanotherstockwehavewrittenaboutasoptimismaroundthecompanyhasebbedandflowedoverthepastthreeyears.Thecompanyisenjoyinganotherupswingandthesharepricehasnowpushedthroughthehighin2014.Recentresultscamein9%aheadofconsensusestimatesreflectingthereaccelerationinsalesgrowth,whichthecompanyreportsmonthly.ExpansionintotheUSmarketistherecentpositivedevelopmentdrivingStShine’sshareprice.Anewonlineclientwasaddedin2016andnowaccountsfor85%ofUSsales.ThebeliefisthatsalesinthischannelcouldbemorestablethanthosefromBausch&LombinChina.Evenmoreencouragingly,thegrossprofitmarginforUSsaleshasnowincreasedtomatchthatofChinesesales.Marginexpansion,increasedproductioncapacityaswellasnewsalesareasarecombiningtomakeforastrongstory.

EdmundHarrissandMarkHammonds(portfoliomanagers)SharukhMalik(analyst)

TheFund’sinvestmentobjectives,risks,chargesandexpensesmustbeconsideredcarefullybeforeinvesting.Thestatutoryandsummaryprospectuscontainsthisandotherimportantinformationabouttheinvestmentcompany,anditmaybeobtainedbycalling800-915-6566orvisitinggafunds.com.Readitcarefullybeforeinvesting.

Investmentsinforeignsecuritiesinvolvegreatervolatility,political,economicandcurrencyrisksanddifferencesinaccountingmethods.Theserisksaregreaterforemergingmarketscountries.Non-diversifiedfundsconcentrateassetsinfewerholdingsthandiversifiedfunds.Therefore,non-diversifiedfundsaremoreexposedtoindividualstockvolatilitythandiversifiedfunds.Investmentsindebtsecuritiestypicallydecreaseinvaluewheninterestratesrise,whichcanbegreaterforlonger-termdebtsecurities.Investmentsinderivativesinvolverisksdifferentfrom,andincertaincases,greaterthantheriskspresentedbytraditionalinvestments.Investmentsinsmallercompaniesinvolveadditionalriskssuchaslimitedliquidityandgreatervolatility.Fundsconcentratedinaspecificsectororgeographicregionmaybesubjecttomorevolatilitythanamorediversifiedinvestment.Investmentsfocusedinasinglegeographicregionmaybeexposedtogreaterriskthaninvestmentsdiversifiedamongvariousgeographies.Investmentsfocusedontheenergysectormaybeexposedtogreaterriskthaninvestmentsdiversifiedamongvarioussectors.

MSCIACPacificEx-JapanIndexisamarketcapitalizationweightedindexthatmonitorstheperformanceofstocksfromthePacificregion,excludingJapanconsistingofAustralia,China,HongKong,Indonesia,Korea,Malaysia,NewZealand,Philippines,Singapore,Taiwan,andThailand.

OnecannotinvestdirectlyinanIndex.

Price/EarningsRatio(P/E)isanequityvaluationmultiple.Itisdefinedasmarketpricepersharedividedbyannualearningspershare.

Page 4: Guinness Atkinson Asia Pacific Dividend Builder Fund Managers Monthly … · 2017-11-15 · Guinness Atkinson Asia Pacific Dividend Builder Fund ... Asia Pacific Dividend Builder

GuinnessAtkinsonAsiaPacificDividendBuilderFundManagersMonthlyUpdate–November2017

Economiccomplexityisameasureoftheproductioncharacteristicsoflargeeconomicsystems,usuallywholecountries.Thegoalofistoexplainaneconomicsystemasawholeratherthanthesumofitsparts;toexplaintheknowledgeaccumulatedinacountry'spopulation(thenetworksthatpeopleform)andthatisexpressedinthecountry'sindustrialcomposition.Toachievethisgoal,themeasurecombinesmetricsofthediversityofcountriesandtheubiquityofproductstocreatemeasuresoftherelativecomplexityofacountry'sexports.

Opinionsexpressedaresubjecttochange,arenotaguaranteeandshouldnotbeconsideredinvestmentadvice.Pastperformanceisnotindicativeoffutureresults.

TopFundHoldingsasof10/31/17

1 Li&FungLtd 3.25%2 LukFookHoldingsInternationalLtd 3.10%3 ReloHoldingsInc 3.09%4 LPNDevelopmentPCL/Foreign-NVDR 3.06%5 HanonSystems 3.02%6 LarganPrecisionCoLtd 3.00%7 YangzijiangShipbuildingHoldingsLtd 2.93%8 CatcherTechnologyCoLtd 2.90%9 DBSGroupHoldings 2.83%10 StShineOpticalCoLtd 2.81%

Fundholdingsandsectorallocationsaresubjecttochangeandarenotrecommendationstobuyorsellanysecurity.

DistributedbyForesideFundServices,LLC.


Pacific University Journal of Social Sciences University Journal of Social Sciences 25 May, 2017, Udaipur Is India Primed to Reap the Gains of Demographic Dividend? Demographic dividend

Non-dividend protected executive options and dividend ... · Non-dividend protected executive options and dividend policy: ... dividend policy, ... employee stock option exercises

List of Pending Dividend From Dividend # 01 to Dividend

Builder IUL , Rapid Builder IUL Guarantee Builder IUL ... · Builder IUL®, Rapid Builder IUL®, Guarantee Builder IUL®, Builder Plus IUL, Survivorship GIUL, Legacy Optimizer North

Website builder builder

A Study on Determinants of Dividend Policy: … A Study on Determinants of Dividend Policy: Empirical Evidence from FMCG Sector in India Pacific Business Review International Volume

uXchange Approved Product List (APL) · Australian Property National Mutual FM PDS Fund Details 0.99% PPL0002AU Antares Dividend Builder Antares PDS Fund ... ETL0200AU Grant Samuel

Pacific Sharav Rig Summary · 2021. 4. 19. · Pacific Sharav Rig Summary General Rig Type: Rig Design: Builder: Drillship Samsung 12000 Double Hull Samsung Heavy Industries Year

Builder Li builder list.pdfst

High Performance Builder Spotlight Tim O’Brien Homes · Title: Builders Challenge High Performance Builder Spotlight: Tim O'Brien Homes, Waukesha, WI Author: Pacific Northwest National

Builder builder

Scientific Assessment Builder / Quiz Builder / Survey Builder

HSBC Asia Pacific (Ex Japan) Dividend Yield Fund€¦ · Offshore funds provide geographic and sector diversification ... Why Dividend Yield Fund for Indian investors ... Valuations

Assessment Builder / Quiz Builder / Survey Builder Scientifique

PACIFIC NORTHWEST DISTRICT Kiwanis builderSummer 2020 | PNW Kiwanis builder magazine 3 The Kiwanis Builder magazine is published quarterly by the Pacific Northwest District of Kiwanis

Builder IUL , Rapid Builder IUL Guarantee Builder IUL ...northamericanlifeplans.com/wp-content/uploads/2018/...Builder IUL®, Rapid Builder IUL®, Guarantee Builder IUL®, Builder

Managers' perception of dividend policy: Evidence … policy, factors that affect dividend policy, dividend setting process, dividend policy and firm value and whether dividend policy

Guinness Atkinson Asia Pacific Dividend Builder Fund …€¦ ·  · 2017-09-21Guinness Atkinson Asia Pacific Dividend Builder Fund Managers Monthly Update – September 2017

Pacific Energy Limited · 2016. 1. 28. · The Company paid a final 30 June 2013 fully franked dividend of 1 cent per share, $3.63 million on 16 September 2013 (2012: nil). 7. Dividend

BPC Green Builder of NY - US Department of Energy · Title: DOE ZERH HIA 2017 Poster: BPC Green Builder of NY, Clinton Colonial, Clinton, NY Author: Pacific Northwest National Laboratory

Dividend Announcements Reconsidered: Dividend Changes

31 March 2016 - Matthews Asia · Dividend Fund, China Dividend Fund, Pacific Tiger Fund, China Fund, India Fund, Japan Fund, China Small Companies Fund, Asia Small Companies Fund,

THURSDAY, APRIL 9, 2015 MUTUAL FUNDS Top Performing … · BlackRock Equity Dividend Inv B MBDVX 8.21 -0.92 7.07 0.84 Eaton Vance Dividend Builder A EVTMX 11.72 3.63 6.97 1.35 Hartford

Advantage Asia Pacific ex Japan Dividend · 2017. 7. 24. · Annual Report for 31 May 2017 Advantage Asia Pacific ... Total actual return for the financial period from 1 August 2012

DIVIDEND SWAPS AND DIVIDEND FUTURES - Trading … Swaps and Futures - Colin... · Barclays Capital | Dividend swaps and dividend futures 11 October 2010 1 DIVIDEND SWAPS AND DIVIDEND

he Board of Trustees of the Guinness Atkinson Funds (the ...{00014205.DOCX- 4 } Guinness Atkinson Funds Guinness Atkinson Asia Pacific Dividend Builder Fund Guinness Atkinson Dividend

VIRIDIUM PACIFIC GROUP LTD. DISCLOSURE, CONFIDENTIALITY ... · changes in capital structure. changes in financial results. change in dividend policy. ... amalgamation, arrangement,

KFS Asia Pacific ex Japan Equity High Div - HSBCRisk Disclosure Fund Objective and Strategy HSBC Global Investment Funds - Asia Pacific ex Japan Equity High Dividend 31 Mar 2020 2017

Project Builder and Interface Builder - Amazon Web Services · Mac OS X: Project Builder and Interface Builder. Project Builder Apple’s Project Builder is a freely available IDE

Strategy Brief | 2Q20 Voya Asia Pacific High …...Strategy rief | Q20 Voya Asia Pacific High Dividend Equity Income Fund Portfolio Highlights Holdings, industry & country weightings

PCB Stackup and Construction Builder...Stress test systems in Europe and Asia Pacific. The SB200A PCB Stackup The SB200A PCB Stackup Builder adds to the Polar product range by helping

Leica Builder Series3mm abgeschnitten wegen Falzung Builder Specifications Builder 100 Builder 200 Builder 300 Builder 400 Builder 500 Full Power Site Software Accuracy up to 1.5 mm

DIVIDEND SWAPS AND DIVIDEND FUTURES - Trading Volatilitytrading-volatility.com/Dividend Swaps and Futures - Colin Bennett.pdf · Barclays Capital | Dividend swaps and dividend futures

Principal Prosperity Series Principal Asia Pacific …...Principal Prosperity Series Principal Asia Pacific High Dividend Equity Fund | page 1 Principal Asset Management Company (Asia)

PACIFIC NORTHWEST DISTRICT Kiwanis builder · 2020-04-11 · 4 PNW . Kiwanis. builder. magazine Summer/Fall 2016. A message from 2016-2017 Governor Ron Myers. A PNW Family Working