Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>The PSEi is the main benchmark of the Philippine Stock Exchange comprising a fixed basket of 30 companies selected on the basis of market capitalization and liquidity thresholds.</li>
<li>In this insight, we look at the potential ADDs/DELs for the PSEi index for the February 2027 index rebal event.</li>
<li>We expect 3 changes based on latest data. However, the reference period is not complete yet and our expectations can change.</li>
</ul>


The PSEi is the main benchmark of the Philippine Stock Exchange comprising a fixed basket of 30 companies selected on the basis of market capitalization and liquidity thresholds.
In this insight, we look at the potential ADDs/DELs for the PSEi index for the February 2027 index rebal event.
We expect 3 changes based on latest data. However, the reference period is not complete yet and our expectations can change.


Quiddity Leaderboard PSEi Feb27 Rebal: First Review Under New Methodology; 3 ADDs/DELs Likely

Contextualizing EM Investment Opportunities, Pyramids and Pagodas

Pyramids and Pagodas

Contextualizing EM Investment Opportunities

Established in 2022, Pyramids and Pagodas aims to cover underreported trends and companies across emerging markets (“EM”), with a particular focus on Asia and the Middle East. Our content targets a broad audience of investors and anyone seeking to capitalize on or learn more about undervalued investment opportunities in these regions. We have skin in the game for these ideas with a view to build a strong track record with demonstrable returns in the long run.

Thematic (Sector/Industry)

<ul><li><p>In the vibrant Philippine gaming industry, we found one casino operator particularly poised to capitalize on the growth story.</p></li><li><p>With higher growth rates, less competition, and lower taxes than Macau, now may be an opportune moment for value investors looking to cash in on the gaming boom.</p></li><li><p>With a strategic focus on expansion, the operator opened another casino this year in Quezon City, which looks set to be a major driver of group revenues over the few years should it follow a similar growth trajectory to the group’s flagship property in Entertainment City.</p></li></ul>

In the vibrant Philippine gaming industry, we found one casino operator particularly poised to capitalize on the growth story.With higher growth rates, less competition, and lower taxes than Macau, now may be an opportune moment for value investors looking to cash in on the gaming boom.With a strategic focus on expansion, the operator opened another casino this year in Quezon City, which looks set to be a major driver of group revenues over the few years should it follow a similar growth trajectory to the group’s flagship property in Entertainment City.

Manila Trip Report – An emerging Pacific Tiger (Part 2)

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

SooChow CSSD Capital Markets (Asia)

<ul><li>NTUC Enterprise weighs US$2.9bn mall portfolio sale - NTUC Enterprise Co-operative is exploring a sale of its retail malls for about S$4bn (US$2.9bn).</li><li>JustCo to open 4 new Co-working spaces in APAC; Silom Edge Bangkok to open by Sep22</li><li><a href="https://www.smartkarma.com/entities/eco-world-international-bhd" target="_blank" data-smartkarma-citation="entities:24034" rel="noopener">Eco World International Bhd (ECWI MK)</a> secured 57% of sales target in 7 months</li></ul>

NTUC Enterprise weighs US$2.9bn mall portfolio sale - NTUC Enterprise Co-operative is exploring a sale of its retail malls for about S$4bn (US$2.9bn).JustCo to open 4 new Co-working spaces in APAC; Silom Edge Bangkok to open by Sep22Eco World International Bhd (ECWI MK) secured 57% of sales target in 7 months

ASEAN Builder's Scoop (17Jun22) - NTUC Weights US$2.9bn Mall Portfolio Sale

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

<p>Investor sentiment in the Industrials sector is turning positive after a multi-year decline among active Asia Ex-Japan fund managers.</p><p>Average allocations in the Industrials sector fell from a peak of 11.4% in mid-2011 to a low of just 4.82% in July of last year.  Since that trough, allocations have started to increase, with today's levels of 5.46% the highest since late 2019.</p><p>We highlight 7 companies that have attracted new investment in the early stages of the reallocation towards the Industrials sector.  </p>

Investor sentiment in the Industrials sector is turning positive after a multi-year decline among active Asia Ex-Japan fund managers.Average allocations in the Industrials sector fell from a peak of 11.4% in mid-2011 to a low of just 4.82% in July of last year.  Since that trough, allocations have started to increase, with today's levels of 5.46% the highest since late 2019.We highlight 7 companies that have attracted new investment in the early stages of the reallocation towards the Industrials sector.  

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/lhn-ltd" target="_blank" data-smartkarma-citation="entities:27234" rel="noopener">LHN Ltd (LHN SP)</a> revamps 1557 Keppel Road into office and Co-living spaces</h3><p>Once the nine-years lease was up in Dec19 for 1557 Keppel Road, LHN, the master tenant of the state land, decided to repurpose the place on a fresh term of lease into an integrated space comprising office and co-living spaces, occupying over 96,299sqft. The renovations took about 10 months, with delays due to the pandemic. The co-living business at the development runs under LHN’s brand Coliwoo, which has a total of over 800 rooms in the city-state. Coliwoo also operates in other areas like Balestier, Boon Lay and Bukit Timah. To date, LHN says 50% of its office spaces are already leased out. Confirmed tenants include a digital media and financial consultancy firm, while arrangements are still pending with three other businesses: an architectural firm, a digital media consultancy and a FinTech company. There will also be a gym operated by Anytime Fitness, and an F&amp;B eatery catering to the office and residential tenants within the development. At Coliwoo 1557 Keppel Road, LHN has also carved out 47 co-living units ranging from 180-260sqft across two residential blocks. Due to pandemic-led lockdowns, Coliwoo has seen demand from locals increase to 30% from 10% previously.</p>

SingaporeLHN Ltd (LHN SP) revamps 1557 Keppel Road into office and Co-living spacesOnce the nine-years lease was up in Dec19 for 1557 Keppel Road, LHN, the master tenant of the state land, decided to repurpose the place on a fresh term of lease into an integrated space comprising office and co-living spaces, occupying over 96,299sqft. The renovations took about 10 months, with delays due to the pandemic. The co-living business at the development runs under LHN’s brand Coliwoo, which has a total of over 800 rooms in the city-state. Coliwoo also operates in other areas like Balestier, Boon Lay and Bukit Timah. To date, LHN says 50% of its office spaces are already leased out. Confirmed tenants include a digital media and financial consultancy firm, while arrangements are still pending with three other businesses: an architectural firm, a digital media consultancy and a FinTech company. There will also be a gym operated by Anytime Fitness, and an F&amp;B eatery catering to the office and residential tenants within the development. At Coliwoo 1557 Keppel Road, LHN has also carved out 47 co-living units ranging from 180-260sqft across two residential blocks. Due to pandemic-led lockdowns, Coliwoo has seen demand from locals increase to 30% from 10% previously.

ASEAN Builder's Scoop (21May21) - LHN unveils 1557KR Co-living and office space

Philippines

Alliance Global Group, Inc. is a Philippine conglomerate with diverse business interests in real estate development through Megaworld Corporation, food and beverage manufacturing and distribution via Emperador Inc., tourism, entertainment, and gaming through Travellers International, and quick-service restaurants, primarily McDonald's operations in the Philippines through Golden Arches Development Corporation. The company was founded in 1993 and is headquartered in Quezon City, Philippines.

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Alliance Global Group (AGI PM)

Quiddity Leaderboard PSEi Feb27 Rebal: First Review Under New Methodology; 3 ADDs/DELs Likely

The introduction of the new methodology is likely to result in the addition of a previously-ineligible large name and a couple of high-impact...

Janaghan Jeyakumar, CFA

Manila Trip Report – An emerging Pacific Tiger (Part 2)

In the vibrant Philippine gaming industry, we found one casino operator particularly poised to capitalize on the growth story.

Pyramids and Pagodas

ASEAN Builder's Scoop (17Jun22) - NTUC Weights US$2.9bn Mall Portfolio Sale

JustCo opening 4 more Co-working space in APAC; ECWI secured 57% of FY sales target; LAND projects IDR75bn capex; AGI increases capex budget +33% YoY

SCCM Asia Research

Asia Ex-Japan: Industrials Rotation

Investor sentiment in the Industrials sector is turning positive after a multi-year decline among active Asia Ex-Japan fund managers.

Steven Holden

ASEAN Builder's Scoop (21May21) - LHN unveils 1557KR Co-living and office space

LHN unveils 1557KR Co-living and office space; SUN rolls out tenant supports; HK starts REIT subsidy to rival SG, Japan; AGI weak 1Q21 results; LBS...

SCCM Asia Research

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