UOB Bank Bond Run

 

Do contact me at +65 90400848 or email to me at lionellimtp@phillip.com.sg if you are keen on any of the above bonds.

Investing in Unit Trusts with CPF Made Easy!

 

Dear all, Your money in Central Provident Fund (CPF) earn a steady 2.5% p.a. in the Ordinary Account (OA) and 4% p.a. in the Special Account (SA). How can you make your CPF money work harder and earn higher interest? Where can you invest them? Read on for a better idea.

What is CPF?

A key pillar of Singapore's social security system, the Central Provident Fund, or CPF helps Singapore Citizens and Permanent Residents set aside their money regularly to build a strong foundation for retirement.  CPF allows you to invest your CPF money under the CPF Investment Scheme (CPFIS). With CPFIS, you can invest your OA and SA savings in a wide range of investments to enhance your retirement savings. One of the options to invest your CPF funds is through POEMS.

CPF Investing on POEMS

How can I start investing with my CPF/SRS savings through POEMS? Here are 3 simple steps for you to kickstart your investment:  Open a CPF Investment account or SRS account with any of the three local banks (DBS, UOB, OCBC) Link your CPFIS/SRS account to your trading account: Log in to POEMS 2.0 > 'My Settings' > 'My Account' > 'Bank A/C Information' Before investing, ensure that you have computed the correct investable amount and have sufficient holdings before making the order submission Please link your CPF or SRS account before 6pm for it to be updated within the same working day.

Here is a list of CPF funds for your consideration: 1. LionGlobal Short Duration Bond Fd Cl A SGD (Dis) 2. Nikko AM Shenton Short Term Bond Fd (S$) 3. UOB United SGD Fund CL A (Acc) 4. First Sentier Bridge Fd A (Semi-Ann Dist) 5. PineBridgeIF - Acorns of Asia Balanced Fund 6. Schroder Multi-Asset Revolution Class A These funds have been selected based on the focus of evergreen balanced/multi-asset funds and short-duration bond funds that are expected to beat CPF-OA's 2.5% interest, with minimal volatility.

With all the knowledge and investment options at your fingertips, you are almost ready to invest! But before you proceed to invest, here are some key factors to consider: 1. Investment Goal Understand the purpose of your investment and set an investment objective (e.g. a long-term goal of growing your savings to $X at the end of 25 years for retirement) 2. Risk Tolerance Assess your risk tolerance. Can you handle temporary short-term losses in your investments? Do you have enough savings to absorb the investment risks?  3. Investment Horizon Consider the duration of your investments. As CPF savings are meant for your retirement, they are generally for long-term purposes, unless you're nearing retirement or have a short-term investment time horizon for other reasons.

Check out a full list of Unit Trust Funds here. Should you have any queries, please contact me at +65 90400848 or email to me at lionellimtp@phillip.com.sg.

Grow your Cash at *4.4% per annum! Limited Time Only!

 

Enjoy Upsized Earnings​

For a limited time only (17 April 2023 to 16 June 2023), enjoy Upsized Earnings of 

1.5% p.a. on top of the rates SMART Park grows at! Deposit into SMART Park and 

enjoy Upsized Earnings!

 

Start from as low as S$100! 

Rate updated as of 17 April 2023.

#Based on the average rate of annualised returns over the last rolling week.

Past performance is not necessarily indicative of future performance. View disclaimer.

Poems Smart Park Tube  https://www.youtube.com/watch?v=NFSuxBIPxu0&t=13s

Merits with Smart Park

No lock In Period

Withdraw Anytime! Cash will be backed into your linked bank account on the same day!

Real Returns, Not Projection

Rates illustrated are real returns!

Trusted with SGD $1 Billion+

One of the largest^ retail SGD MMF, consisting of high quality, short term instruments,

including High Quality Govt and Corporate Bonds, Commercial Bills and Fixed Deposits.

Trust Financial Institutions

Serving institutions and retail investors for 45+ years.

Smart Park Returns:

SGD 2.5924% p.a.

USD 3.4808% p.a.

Rates updated as per 17th April 2023

Rates based on average rates annualised returns over the last rolling week.

Past performance is not necessary indicative of future performance.

View Product Sheet SGD

View Product Sheet USD

If you are interested or have any queries, please contact me at +65 90400848 or email 

to me at lionellimtp@phillip.com.sg.

Local Banking Sector & Commentary 29/3/2023

The 3 local banks recently announced 2022 Q4 earnings and rewarded shareholders with increased dividends payout.

However my view is that investors should be more concern over the future coming prospects of the local banking sector rather than the dividend yield.

From the above table,

The bank that pays out the highest yield is OCBC. Though UOB dividend yield is the lowest among the 3 local banks, they may register the highest EPS growth over 2023-2024 with the acquisition of CitiBank Thailand, Malaysia, Vietnam and Indonesia Units. DBS Group acquired CitiBank Taiwan.

Note: Dividend Yield computation is based on quarterly, interim, final dividend payout and does not take into account of special dividend. Dividend Payout and Dividend Payout Ratio is subject to management discretion.

Lets take a look at recent top management commentary to gain an insight about the future prospects.

DBS Chairman comments " Our business pipelines are healthy and asset quality robust. We expect confidence to return to markets in the coming year as interest rate increases ease and China reopens. The substantial increase in our ordinary dividend and the special dividend to a total of 92 cents per share reflect our robust earnings profile and the strength of our capital position. This brings the total payout for the financial full year to SGD 2.00 per share.”

UOB CEO comments " The ASEAN region is vibrant with immense long-term potential. We remain positive on the region despite the global economic gloom in the near term. Looking ahead, we are confident that our strategy of seeking growth while ensuring stability will continue to create value for our customers and other stakeholders."

OCBC CEO comments "Looking ahead, our key markets in Asia are expected to remain resilient, and growth is forecasted to outpace the global average in 2023. We are optimistic that the reopening of China and Hong Kong SAR could further spur regional economic growth. We enter the new year with confidence as we drive for sustainable growth and deliver long-term value to our shareholders.”

My Opinion

The the collapse of Silicon Valley Bank in US and negative market sentiment, has resulted in the drop in energy prices. Inflation is likely to ease off. The era of aggressive rate hike by US Fed is more or less over. Taking into account of a softer economy, its time to look at companies with sustainable earnings with manageable debt levels.  If there are no further headwinds apart from the stress face by Credit Sussie, I am in the opinion that the Banking Sector is able to maintain the current level of dividend payouts.

For those who are holding on to SG Banking stocks, keep your fingers crossed that there will be no recession in US. A recession is US will lead to interest rates cut which can be deemed negative to SG Banks' earnings.

DBS Group Holdings Bonds Prices

Fund Transfer from DBS Bank Multi-Currency Account (Non-SGD) - NEW

 For clients using DBS Multi-Currency Accounts, Good news for you! 

 

We are pleased to inform you that we have introduced a new payment mode for multi-currency (Non-SGD) account transfer for DBS customer with multi-currency bank account.

 

DBS customer with multi-currency bank account can initiate a Non-SGD (USD, HKD, AUD and GBP) account transfer directly to Phillip Securities Pte Ltd DBS multi-currency account at zero bank charges as follow.

 

Say goodbye to the hefty Telegraphic Transfer bank charges.

 

For more details please refer to:  https://www.poems.com.sg/payment/

Poems Notification on Phillip Funds Exposure to SVB and Credit Sussie

Dear all,

I've received the following notification from Phillip Capital for your information below:

Phillip Funds do not have any exposure to SVB and Credit Suisse. The current bank failures have no material impact on our funds. In fact, Phillip SGD Money Market Fund, Phillip USD Money Market Fund and Phillip SGD Money Market ETF are well diversified across industries, keeping high overnight liquidity and holding high exposure to the MAS Government Bills. We will conduct stress tests and quantify the impact concurrently to back our reassurance.