Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>S&amp;P DJI Global Indices on Friday announced the changes to the S&amp;P500, S&amp;P Midcap 400, and S&amp;P 600 to be implement at the close on 17 December. </li>
<li>There were no surprises and the whole exercise is one of rearranging the deckchairs. Stocks move up an index, or down an index, but nothing moves out of the three.</li>
<li>The proprietary S&amp;P data suggests little opportunity, but empirical data suggests otherwise, and as in most cases, the interesting trades are the smaller ones.</li>
</ul>


S&amp;P DJI Global Indices on Friday announced the changes to the S&amp;P500, S&amp;P Midcap 400, and S&amp;P 600 to be implement at the close on 17 December. 
There were no surprises and the whole exercise is one of rearranging the deckchairs. Stocks move up an index, or down an index, but nothing moves out of the three.
The proprietary S&amp;P data suggests little opportunity, but empirical data suggests otherwise, and as in most cases, the interesting trades are the smaller ones.


S&P500 Rebalance for December 2021 - Rearranging the Deckchairs

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

Factset Research Systems Inc / Index Rebalance

<ul>
<li>There are 3 stocks migrating from the S&amp;P500 to the S&amp;P400 and vice versa and another 3 stocks migrating from the S&amp;P600 to the S&amp;P400 and vice versa.</li>
<li>The impact of changes in the number of index shares for quite a few index constituents and the funding trade take the one-way trade size to US$18.5bn.</li>
<li>There appear to be pre-positions on some of the stocks. While the flow is large on many stocks, there are only a few that have over 2 days of ADV.</li>
</ul>


There are 3 stocks migrating from the S&amp;P500 to the S&amp;P400 and vice versa and another 3 stocks migrating from the S&amp;P600 to the S&amp;P400 and vice versa.
The impact of changes in the number of index shares for quite a few index constituents and the funding trade take the one-way trade size to US$18.5bn.
There appear to be pre-positions on some of the stocks. While the flow is large on many stocks, there are only a few that have over 2 days of ADV.


S&P500 Index Rebalance: Migrations Across the Indices

Alpha-Centric ESG Research

Kyle Rudden

Two days ago the U.K. Financial Reporting Council announced 125 successful signatories (aka "not greenwashers") to the revised U.K. Stewardship Code. Signatories are integrating stewardship and ESG (Environmental, Social, Governance) factors into investment decisions, to high standards.Whilst this is ostensibly limited to U.K. pension assets, ramifications are more far-reaching than it might at first appear (one indication is the number of North American and Asia Pacific signatories, in addition to the expected European names). More specifically, the broad relevance is because it:<ul>
<li>Affects firms doing business with U.K. asset managers/owners not just the managers/owners.</li>
<li>Is a quasi-blueprint for similar anti-greenwashing initiatives taking root in the U.S. and Asia.</li>
<li>Greenwashing is having an increasing impact on stocks prices (e.g., DWS Group last month).</li>
</ul>This is one battle in an emerging global war on greenwashing. The U.S. SEC has its own agenda to fight greenwashing and Asia isn't far behind (e.g., regulators in Japan stepping up scrutiny). There is more to come, and a lot to learn from this including who is (and is not) on the signatory list.

Two days ago the U.K. Financial Reporting Council announced 125 successful signatories (aka "not greenwashers") to the revised U.K. Stewardship Code. Signatories are integrating stewardship and ESG (Environmental, Social, Governance) factors into investment decisions, to high standards.Whilst this is ostensibly limited to U.K. pension assets, ramifications are more far-reaching than it might at first appear (one indication is the number of North American and Asia Pacific signatories, in addition to the expected European names). More specifically, the broad relevance is because it:
Affects firms doing business with U.K. asset managers/owners not just the managers/owners.
Is a quasi-blueprint for similar anti-greenwashing initiatives taking root in the U.S. and Asia.
Greenwashing is having an increasing impact on stocks prices (e.g., DWS Group last month).
This is one battle in an emerging global war on greenwashing. The U.S. SEC has its own agenda to fight greenwashing and Asia isn't far behind (e.g., regulators in Japan stepping up scrutiny). There is more to come, and a lot to learn from this including who is (and is not) on the signatory list.

The War on Greenwashing: UK Stewardship Code "Successful Signatories" Has Broader Implications

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

Mapletree Industrial Trust / Equity Bottom-Up

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2021-07/Capture%201.PNG' alt='SREITs leaders index' />
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 <div class='content-caption'>SREITs leaders index</div>
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In Singapore, the suite of iEdge S-Reit Indices measures the performance of Reits listed on SGX. The suite comprises the iEdge S-Reit index, widely regarded as one of S-Reits' barometers, and a narrower subset of it, the iEdge S-Reit Leaders Index.

The iEdge S-Reit Leaders Index is a narrow, tradable, adjusted free-float market capitalisation weighted index that measures the performance of the most liquid trusts in Singapore. Constituents must be listed on SGX and classified under Reits as defined by the Factset Revere Business Industry Classification System. The trust must also have free float of at least 20 per cent and a free float market capitalisation of at least S$500 million.

All eligible trusts are screened for liquidity at the semi-annual rebalancing in March and September. To enter the iEdge S-Reit Leaders Index, eligible trusts must trade at least US$500,000 in daily turnover and a 0.10 per cent daily trading velocity of the free float market capitalisation.

To maintain an existing place, constituents must maintain US$400,000 in daily turnover and a 0.08 per cent daily trading velocity of the free float market capitalisation. 
Following Lendlease Global Commercial REIT’s (LREIT) addition in March 2021, there are currently 27 constituents in the iEdge S-REIT Leaders Index. 
LReit has a diversified portfolio comprising of a leasehold interest in, 313@somerset, a prime retail property located in Singapore and a freehold interest in Sky Complex, which comprises three grade-A office buildings located in Milan.

In October 2020, LReit acquired a 5.0 per cent stake in Lendlease Asian Retail Investment Fund 3, which indirectly holds a 75.0 per cent interest in Jem, an integrated office and retail development in Singapore.

Comparing total returns, the iEdge S-Reit Leaders Index (-0.9 per cent), proved to be more resilient than the broader iEdge S-Reit Index (-2.6 per cent) and the FTSE EPRA/Nareit Global Reits Index (-12.0 per cent) last year.

Though the iEdge S-Reit Leaders Index (+4.0 per cent) lagged the global benchmark (+25.1 per cent) in 2021 year-to-date, it outperformed in the long term. The five-year total returns of the iEdge S-Reit Leaders Index came in at 60.6 per cent versus FTSE EPRA/Nareit Global Reit Index's 28.2 per cent. This was mostly led by S-Reits with data centre, industrial, and healthcare assets. 
The constituents with the highest five-year total returns include: Keppel DC REIT (+175.6 per cent), Mapletree Logistics Trust (+168.0 per cent), ParkwayLife REIT (+133.2 per cent), Mapletree Industrial Trust (+123.9 per cent) and Frasers Logistics and Commercial Trust (+113.8 per cent). Together, the five trusts make up approximately 36 per cent of the overall index weightage.

Products tracking the iEdge S-Reit Leaders Index include the SGX iEdge S-Reit Leaders Index Futures and the Syfe Reit+ portfolio. REIT Watch is a weekly column on The Business Times, <a href="https://www.businesstimes.com.sg/companies-markets/iedge-s-reit-indices-barometers-for-s-reits">read </a>the original version.
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    SREITs leaders index


In Singapore, the suite of iEdge S-Reit Indices measures the performance of Reits listed on SGX. The suite comprises the iEdge S-Reit index, widely regarded as one of S-Reits' barometers, and a narrower subset of it, the iEdge S-Reit Leaders Index.

The iEdge S-Reit Leaders Index is a narrow, tradable, adjusted free-float market capitalisation weighted index that measures the performance of the most liquid trusts in Singapore. Constituents must be listed on SGX and classified under Reits as defined by the Factset Revere Business Industry Classification System. The trust must also have free float of at least 20 per cent and a free float market capitalisation of at least S$500 million.

All eligible trusts are screened for liquidity at the semi-annual rebalancing in March and September. To enter the iEdge S-Reit Leaders Index, eligible trusts must trade at least US$500,000 in daily turnover and a 0.10 per cent daily trading velocity of the free float market capitalisation.

To maintain an existing place, constituents must maintain US$400,000 in daily turnover and a 0.08 per cent daily trading velocity of the free float market capitalisation.  
Following Lendlease Global Commercial REIT’s (LREIT) addition in March 2021, there are currently 27 constituents in the iEdge S-REIT Leaders Index.  
LReit has a diversified portfolio comprising of a leasehold interest in, 313@somerset, a prime retail property located in Singapore and a freehold interest in Sky Complex, which comprises three grade-A office buildings located in Milan.

In October 2020, LReit acquired a 5.0 per cent stake in Lendlease Asian Retail Investment Fund 3, which indirectly holds a 75.0 per cent interest in Jem, an integrated office and retail development in Singapore.

Comparing total returns, the iEdge S-Reit Leaders Index (-0.9 per cent), proved to be more resilient than the broader iEdge S-Reit Index (-2.6 per cent) and the FTSE EPRA/Nareit Global Reits Index (-12.0 per cent) last year.

Though the iEdge S-Reit Leaders Index (+4.0 per cent) lagged the global benchmark (+25.1 per cent) in 2021 year-to-date, it outperformed in the long term. The five-year total returns of the iEdge S-Reit Leaders Index came in at 60.6 per cent versus FTSE EPRA/Nareit Global Reit Index's 28.2 per cent. This was mostly led by S-Reits with data centre, industrial, and healthcare assets.  
The constituents with the highest five-year total returns include: Keppel DC REIT (+175.6 per cent), Mapletree Logistics Trust (+168.0 per cent), ParkwayLife REIT (+133.2 per cent), Mapletree Industrial Trust (+123.9 per cent) and Frasers Logistics and Commercial Trust (+113.8 per cent). Together, the five trusts make up approximately 36 per cent of the overall index weightage.

Products tracking the iEdge S-Reit Leaders Index include the SGX iEdge S-Reit Leaders Index Futures and the Syfe Reit+ portfolio.  REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - iEdge S-Reit Indices: barometers for S-Reits

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Capital Markets

Factset Research Systems Inc / Equity Capital Markets

<ul><li>actSet is a well-established financial platform and analytics solutions provider catering to institutional investors, banks, and other financial institutions.</li><li>Given its high valuation, we give the stock a 'Hold' rating at current levels.</li><li>In this report, we have carried out a fundamental analysis of the historical financial statements of the company.</li></ul>

actSet is a well-established financial platform and analytics solutions provider catering to institutional investors, banks, and other financial institutions.Given its high valuation, we give the stock a 'Hold' rating at current levels.In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

FactSet Research Systems - Investment Thesis

United States

FactSet Research Systems Inc. supplies global economic and financial data to analysts, investment bankers, and other financial professionals.  The Company combines databases from multiple suppliers into a single online source of information and analytics, including fundamental data.

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Factset Research Systems Inc (FDS US)

S&P500 Rebalance for December 2021 - Rearranging the Deckchairs

The S&P announced its changes to the S&P500, S&P Midcap 400, and S&P Small 600 Indices. All names moving in and out of these indices are coming...

Travis Lundy

S&P500 Index Rebalance: Migrations Across the Indices

There are 3 migrations from the S&P400 to the S&P500 and vice versa and another 3 migrations from the S&P600 to the S&400 and vice versa. The one...

Brian Freitas

The War on Greenwashing: UK Stewardship Code "Successful Signatories" Has Broader Implications

Telegraph from European front in global war on greenwashing. U.K. names stewardship victors ("not greenwashers"). Many notable casualties. Anti...

Kyle Rudden

REIT Watch - iEdge S-Reit Indices: barometers for S-Reits

In Singapore, the suite of iEdge S-Reit Indices measures the performance of Reits listed on SGX. The suite comprises the iEdge...

Singapore Exchange Ltd (SGX)

FactSet Research Systems - Investment Thesis

actSet is a well-established financial platform and analytics solutions provider catering to institutional investors, banks, and other financial...

Baptista Research

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