Global Investment Limited (SGX:B73)

[lzydata]

Fascinating. This is not so much a company as it is a mutual fund. One third equities, one third CLOs and RMBSes, 20% in bonds.

 

[felixleong]

Fascinating. This is not so much a company as it is a mutual fund. One third equities, one third CLOs and RMBSes, 20% in bonds.

ya

its more of a balanced fund

good thing is that they don't use leverage (no heavy borrowings)

I think they should be able to product long term returns of around 8% or so

 

[felixleong]

I have been buying.. 400lots now

the recent 3 rights issue, did u participate in all of them?

do u feel positive or negative of future rights issue again?

 

[Asphodeli]

been holding on for 3 years liao. didn't take rights, and only took dividends in cash.

fundamentally looks alright, but i'm wondering why it's traded at 13 to 16 cents range - maybe must do share consolidation like Hotung to get attention from BBs?

 

[lzydata]

been holding on for 3 years liao. didn't take rights, and only took dividends in cash.

fundamentally looks alright, but i'm wondering why it's traded at 13 to 16 cents range - maybe must do share consolidation like Hotung to get attention from BBs?

To meet SGX's minimum 20c price rule, they will probably have to do something or another, besides just hoping the price will appreciate.

 

[felixleong]

they probably need to do 2 become 1 consolidation to stay above 20 cents

 

[wahkao3]

i dun like asset management company
like buying actively managed ETF

 

[Asphodeli]

they probably need to do 2 become 1 consolidation to stay above 20 cents

Wah liew where got so heng one, just posted today whether they'll do share consolidation, and they just announced they're not going to do share consolidation! Most likely is share buyback...

Sent from Sony D5833 using GAGT

 

[lzydata]

Wow, they just put out an announcement about it, like five minutes ago. What a coincidence

"The Company intends to comply with the MTP Requirement which is a continuous listing requirement in due course and remain on the Mainboard of the SGX-ST. The Company does not intend, however, to conduct a share consolidation exercise at the time of its Annual General Meeting in April 2015. It will make a further announcement of its plans to meet the MTP Requirement as and when appropriate."

http://infopub.sgx.com/FileOpen/10_...quirement.ashx?App=Announcement&FileID=338561

 

[felixleong]

Wow, they just put out an announcement about it, like five minutes ago. What a coincidence

"The Company intends to comply with the MTP Requirement which is a continuous listing requirement in due course and remain on the Mainboard of the SGX-ST. The Company does not intend, however, to conduct a share consolidation exercise at the time of its Annual General Meeting in April 2015. It will make a further announcement of its plans to meet the MTP Requirement as and when appropriate."

http://infopub.sgx.com/FileOpen/10_...quirement.ashx?App=Announcement&FileID=338561

wah I got bad feeling... if wanna share consolidate then just share consolidate and let shareholders pass the vote during AGM la...

I really like this company due to the big discount to NAV and steady returns, but I just dislike their constant rights issue....

 

[Asphodeli]

wah I got bad feeling... if wanna share consolidate then just share consolidate and let shareholders pass the vote during AGM la...

I really like this company due to the big discount to NAV and steady returns, but I just dislike their constant rights issue....

Either is share buyback or move to Catalist lor.

 

[hjx]

the recent 3 rights issue, did u participate in all of them?

do u feel positive or negative of future rights issue again?

i buy all plus excess

i feel positive.. will buy more

 

[felixleong]

i buy all plus excess

i feel positive.. will buy more

wah then ok la

i think if u got deep pockets, then ok
cause the rights usually at discount so worth getting


I no deep pockets.. if they rights and I cannot pick up.. damn bo hua liao

 

[lzydata]

Technically there are other options besides share consolidation or moving to Catalist. And not really share buybacks, because you'd have to buy a lot to really move the price up to 20c.

Given the discount to NAV, high yield and relatively small market cap, management may also be entertaining buyout offers. Or the managers themselves could mount an offer and privatise it.

So that's how I interpret their pretty vague announcement.

Interestingly, their manager ST Asset Management Ltd is wholly owned by Temasek, although I don't think they still have any connection to other "ST" companies. They took over managing this company when it ran into problems during the financial crisis.

 

[felixleong]

Technically there are other options besides share consolidation or moving to Catalist. And not really share buybacks, because you'd have to buy a lot to really move the price up to 20c.

Given the discount to NAV, high yield and relatively small market cap, management may also be entertaining buyout offers. Or the managers themselves could mount an offer and privatise it.

So that's how I interpret their pretty vague announcement.

Interestingly, their manager ST Asset Management Ltd is wholly owned by Temasek, although I don't think they still have any connection to other "ST" companies. They took over managing this company when it ran into problems during the financial crisis.

During the GFC, the previous management screwed up and the fund almost became insolvent. Mr Boon took up a stake and a special general meeting was called to replace the management with his team instead.

After Mr Boon took control, the fund was very small after all settling all the losses.. he pumped very much of his own money via open market purchases followed by strings of rights issue

as their management fee is only 1%, its pretty low so they really need to push AUM up.

They are in no way backed by temasek, but Mr Boon used to work for Temasek and GIL is his own position. He doesn't not have the funds to buy out GIL, but his intention is more towards growing its AUM steadily towards 1 billion or higher, in which they will hit a higher management fee of 1.5% once 1 billion mark is passed. They are also unable to collect performance fee, as the water mark is still high from the past records.

That's why its not a vehicle that will by spiting out cash to shareholders, but rather more of retaining cash via script and increasing AUM by rights or placement

 

[wahkao3]

this kind of actively managed funds, not worth buying into....
I have more advantage investing myself as a retail investor than buying an equity stake in an actively managed fund run by so called professionals

unless at super cheap discounts, and got superstar investor like warren buffet

 

[Perisher]

this kind of actively managed funds, not worth buying into....
I have more advantage investing myself as a retail investor than buying an equity stake in an actively managed fund run by so called professionals

unless at super cheap discounts, and got superstar investor like warren buffet

Think you mean BRK.A/B

 

[linxiaobei]

Think you mean BRK.A/B

but he wants it at penny price. Hahaha

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[Asphodeli]

Actually when I bought this I only saw that it's managed by STAM, so management of the stock seems fine, but what does it do? I assume it's an investment holding?

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[felixleong]

Actually when I bought this I only saw that it's managed by STAM, so management of the stock seems fine, but what does it do? I assume it's an investment holding?

Sent from Sony D5833 using GAGT

STAM inside is filled with those garmen scholars one... they are not risk takers... STAM is just one of the smaller fund management units control by temasek, however temasek does not have any vested stake in GIL

Its the CEO mr Boon that has a vested stake in his own GIL, however he serves as an adviser to STAM too (i am quite rusty with my info, so might not be fully correct)

like what u see in GIL powerpoint presentation, a good mix if equities and fixed income products.. the long term returns will be around 8% or so, since its a balanced fund

management fee 1%

30% discount to NAV (quite similar to other closed ended funds that are listed, you bother to check around)