Global Investments

[Boon]

FY2015 Results:
 
Number of Outstanding Shares
FY2010 =  393,006,086
FY2011 =  550,208,520
FY2012 =  825,312,780
FY2013 =1,191,982,617
FY2014 =1,334,472,601
FY2015 =1,446,433,831
 
New Shares Issued: Rights Issue
2010 = Nil
2011 = 157,202,434 (Rights Issue; Issue Price = SGD 0.138 per share) 
2012 = 275,104,260 (Rights Issue; Issue Price = SGD 0.128 per share)
2013 = 340,542,666 (Rights Issue; Issue Price = SGD 0.143 per share) 
 
New Shares Issued: Dividend Scrip
2013 = 26,103,375 (Dividend Scrip; Issue Price = SGD 0.1522 per share) = 2H2012 dividend
2014 = 90,304,464 (Dividend Scrip; Issue Price = SGD 0.130 per share) = 2H2013 dividend
2014 = 52,185,520 (Dividend Scrip; Issue Price = SGD 0.130 per share) = 1H2014 dividend
2015 = 56,382,672 (Dividend Scrip; Issue Price = SGD 0.130 per share) = 2H2014 dividend
2015 = 55,578,558 (Dividend Scrip; Issue Price = SGD 0.128 per share) = 1H2015 dividend
 
NPAT (SGD million)
FY2011 = 12.2
FY2012 = 19.1
FY2013 = 28.8
FY2014 = 24.3
FY2015 = 16.9 (Down 30.5%)
 
EPS (SGD cent)
FY2011 = 2.34
FY2012 = 2.45
FY2013 = 2.82
FY2014 = 1.92
FY2015 = 1.22 (Down 36.5%)
 
Return on Equity (ROE):
FY2011 =  9.0%
FY2012 = 11.2%
FY2013 = 12.5% (based on average Total Equity of SGD 229.91 m)
FY2014 =   8.8% (based on average Total Equity of SGD 277.23 m)
FY2015 =   5.9% (based on average Total Equity of SGD 288.47 m) => Down 33%
 
NAV (SGD million)
FY2010 = 121.8 
FY2011 = 149.5 
FY2012 = 190.1  
FY2013 = 269.7 
FY2014 = 284.7 
FY2015 = 292.2 

NAV per share (SGD cents)
FY2010 = 31.0
FY2011 = 27.2
FY2012 = 23.0
FY2013 = 20.6
FY2014 = 21.3
FY2015 = 20.2
 
DPS (SGD cents):
FY2010 = 1.0
FY2011 = 1.5
FY2012 = 1.5
FY2013 = 1.5
FY2014 = 1.5
FY2015 = 1.5
 
Dividend Distribution = Equivalent Cash Amount ( SGD million):
FY2010 =   3.9
FY2011 =   8.3
FY2012 = 12.4
FY2013 = 17.9
FY2014 = 19.6
FY2015 = 21.3
 
OCF + Gain on Sales of Investments – Dividend Distribution (Assumed all paid in CASH) :
FY2014 = 11.558 + 6.450 – 19.6 = - 1.6 million (Deficit)
FY2015 =   4.749 + 14.4 – 21.3 = - 2.2 million (Deficit)
 
Comments:
1)  ROE, NPAT and EPS have been declining over the past two financial years from its peak in FY2013.
2)  ROE and EPS are at all time low under STAM’s management.
3)  DPS has been maintained at 1.5 cent over the past 5 years.
4)  If all dividends were to be paid in cash, from cash flow perspective, OCF plus gain on sales of investments is not enough to cover DPS of 1.5 cent.
5)  Accounting profit in FY2015 is not enough to cover DPS of 1.5 cent either.
6)  Management has been relying on gain on sales of investments (mainly in listed equities) to make up for declining recurring income (interest income and dividend income) in the past few years. But interestingly, as at end of FY2015, listed equities only made up 17% of the total portfolio as compared to 32% (at the end of FY2014) whereas bonds has increased from 25% (at end of FY2014) to 46% as % of total portfolio (at end of FY2015). 
7)  Cash Dividend yield of DPS=1.5 cent seems very attractive.
8)  Scrip dividend yield “looks” even more attractive ~ but is it really? Return of re-investment as measured by ROE has been dropping for the past 2 years.
9)  NAV per share dropped in FY2015 despite of re-investment of dividend via Scrip Dividend Scheme.
10)              Question remains: how long could this DPS = 1.5 cents be maintained, with increasing number of new shares being issued each year?
11)              To cover Cash Dividend Distribution of about 22.5 m (assumed) in FY2016, ROE required (net of management fees and expenses) ~ 7.7% (= 22.5 / 292.2)
12)              So, was ROE of 5.9 % in FY2015 just a blip ? Only time will tell !
_______________________________________________________________________________

[Retired@52]

Global Investments Ltd (GIL) - AGM on 29.04.16

Some Answers to the Many Questions:

Q) Why does GIL invest less in Listed Equities (17%) & more in High Yield Bonds (46%)
A) Bonds give more stable income, this will help GIL to pay regular dividends.

Q) When interest rate goes up, will it affect GIL's Bonds?
A) Not so because of 2 reasons:

i) GIL likely to hold the Bonds to maturity
ii) Most of GIL's Bonds are on Floating rates so when interest rate goes up, the Issuers have to pay higher coupons to GIL.

When interest rate goes up, bond price comes down, this will give good opportunities for GIL to invest more in Bonds with higher yield.

After the AGM, I asked Ms. Tan Mui Hong on why she is not on the Top 20 Shareholder List. She showed me in page 109:
The Top 3th & 4th position goes to Goh Si Hui (44,808,166 Shares) & Goh Si Kai (44,807,045 Shares). Both of them are her children.

[cyclone]

Global Investments Limited refers to the announcement dated 14 May 2016, relating to the share purchase agreement entered into by the Company’s wholly-owned subsidiary, BBSFF EU Rail Lessor Limited ("BBSFF") and the other shareholders of Ascendos Investments Limited ("Ascendos") on 12 May 2016 for the sale of the entire issued share capital of Ascendos to BRL HoldCo S.A.R.L.

The Board wishes to announce that the Transaction was completed on 16 June 2016. Ascendos has thereby ceased to be an associated company of the Company.

As at the date of completion, the consideration amount due to BBSFF in relation to its shareholding in Ascendos is € 16.9 million which will result in contribution to earnings per share of approximately 0.71 Singapore cents. The above figures are subject to changes as the consideration is subject to further
adjustment in accordance with the provisions of the SPA.

[cyclone]

Global Investments Limited refers to the announcement dated 14 May 2016, relating to the share purchase agreement entered into by the Company’s wholly-owned subsidiary, BBSFF EU Rail Lessor Limited ("BBSFF") and the other shareholders of Ascendos Investments Limited ("Ascendos") on 12 May 2016 for the sale of the entire issued share capital of Ascendos to BRL HoldCo S.A.R.L.

The Board wishes to announce that the Transaction was completed on 16 June 2016. Ascendos has thereby ceased to be an associated company of the Company.

As at the date of completion, the consideration amount due to BBSFF in relation to its shareholding in Ascendos is € 16.9 million which will result in contribution to earnings per share of approximately 0.71 Singapore cents. The above figures are subject to changes as the consideration is subject to further
adjustment in accordance with the provisions of the SPA.

The final consideration amount received by BBSFF EU Rail Lessor Limited from the divestment of Ascendos is €17.5million and the contribution to earnings per share is approximately 0.77 Singapore cents.

[cyclone]

Mrs Goh conferred the title of Honorary Counsel

The Board has unanimously decided to confer the title of "Honorary Counsel" upon Mrs Goh Mui Hong, President and Chief Executive Officer of STAM, in recognition of her contribution to the Company through her leadership of STAM, the manager of the Company from November 2009 to April 2016.

Mrs Goh has accepted the conferment, which will be for a period of two (2) years commencing from 29 October 2016.

As Honorary Counsel, Mrs Goh will be invited by the Board to participate in the Company’s board and shareholder meetings and to share her views and expertise on global macro-economic trends affecting the global investing environment.

[cyclone]

Global Investments Limited is pleased to provide final dividend guidance of 0.75 Singapore cents per ordinary share in the capital of the Company in respect of the financial year ending 31 December 2016.

The final dividend is expected to be declared in February 2017 together with the announcement of the 4Q results and full year results for 2016 and is expected to be paid in April 2017.

[Boon]

FY2015 Results:
 
Number of Outstanding Shares
FY2010 =  393,006,086
FY2011 =  550,208,520
FY2012 =  825,312,780
FY2013 =1,191,982,617
FY2014 =1,334,472,601
FY2015 =1,446,433,831
 
New Shares Issued: Rights Issue
2010 = Nil
2011 = 157,202,434 (Rights Issue; Issue Price = SGD 0.138 per share) 
2012 = 275,104,260 (Rights Issue; Issue Price = SGD 0.128 per share)
2013 = 340,542,666 (Rights Issue; Issue Price = SGD 0.143 per share) 
 
New Shares Issued: Dividend Scrip
2013 = 26,103,375 (Dividend Scrip; Issue Price = SGD 0.1522 per share) = 2H2012 dividend
2014 = 90,304,464 (Dividend Scrip; Issue Price = SGD 0.130 per share) = 2H2013 dividend
2014 = 52,185,520 (Dividend Scrip; Issue Price = SGD 0.130 per share) = 1H2014 dividend
2015 = 56,382,672 (Dividend Scrip; Issue Price = SGD 0.130 per share) = 2H2014 dividend
2015 = 55,578,558 (Dividend Scrip; Issue Price = SGD 0.128 per share) = 1H2015 dividend
 
NPAT (SGD million)
FY2011 = 12.2
FY2012 = 19.1
FY2013 = 28.8
FY2014 = 24.3
FY2015 = 16.9 (Down 30.5%)
 
EPS (SGD cent)
FY2011 = 2.34
FY2012 = 2.45
FY2013 = 2.82
FY2014 = 1.92
FY2015 = 1.22 (Down 36.5%)
 
Return on Equity (ROE):
FY2011 =  9.0%
FY2012 = 11.2%
FY2013 = 12.5% (based on average Total Equity of SGD 229.91 m)
FY2014 =   8.8% (based on average Total Equity of SGD 277.23 m)
FY2015 =   5.9% (based on average Total Equity of SGD 288.47 m) => Down 33%
 
NAV (SGD million)
FY2010 = 121.8 
FY2011 = 149.5 
FY2012 = 190.1  
FY2013 = 269.7 
FY2014 = 284.7 
FY2015 = 292.2 

NAV per share (SGD cents)
FY2010 = 31.0
FY2011 = 27.2
FY2012 = 23.0
FY2013 = 20.6
FY2014 = 21.3
FY2015 = 20.2
 
DPS (SGD cents):
FY2010 = 1.0
FY2011 = 1.5
FY2012 = 1.5
FY2013 = 1.5
FY2014 = 1.5
FY2015 = 1.5
 
Dividend Distribution = Equivalent Cash Amount ( SGD million):
FY2010 =   3.9
FY2011 =   8.3
FY2012 = 12.4
FY2013 = 17.9
FY2014 = 19.6
FY2015 = 21.3
 
OCF + Gain on Sales of Investments – Dividend Distribution (Assumed all paid in CASH) :
FY2014 = 11.558 + 6.450 – 19.6 = - 1.6 million (Deficit)
FY2015 =   4.749 + 14.4 – 21.3 = - 2.2 million (Deficit)
 
Comments:
1)  ROE, NPAT and EPS have been declining over the past two financial years from its peak in FY2013.
2)  ROE and EPS are at all time low under STAM’s management.
3)  DPS has been maintained at 1.5 cent over the past 5 years.
4)  If all dividends were to be paid in cash, from cash flow perspective, OCF plus gain on sales of investments is not enough to cover DPS of 1.5 cent.
5)  Accounting profit in FY2015 is not enough to cover DPS of 1.5 cent either.
6)  Management has been relying on gain on sales of investments (mainly in listed equities) to make up for declining recurring income (interest income and dividend income) in the past few years. But interestingly, as at end of FY2015, listed equities only made up 17% of the total portfolio as compared to 32% (at the end of FY2014) whereas bonds has increased from 25% (at end of FY2014) to 46% as % of total portfolio (at end of FY2015). 
7)  Cash Dividend yield of DPS=1.5 cent seems very attractive.
8)  Scrip dividend yield “looks” even more attractive ~ but is it really? Return of re-investment as measured by ROE has been dropping for the past 2 years.
9)  NAV per share dropped in FY2015 despite of re-investment of dividend via Scrip Dividend Scheme.
10)              Question remains: how long could this DPS = 1.5 cents be maintained, with increasing number of new shares being issued each year?
11)              To cover Cash Dividend Distribution of about 22.5 m (assumed) in FY2016, ROE required (net of management fees and expenses) ~ 7.7% (= 22.5 / 292.2)
12)              So, was ROE of 5.9 % in FY2015 just a blip ? Only time will tell !
_______________________________________________________________________________

The inevitable will come sooner or later.................................

Interim dividend will be cut from 0.75 cent to 0.65 cent ( - 13.3% )  

http://www.globalinvestmentslimited.com/...idance.pdf

GLOBAL INVESTMENTS LIMITED RELEASES INTERIM DIVIDEND GUIDANCE OF 0.65 SINGAPORE CENTS PER SHARE FOR THE FINANCIAL YEAR ENDING 31 DECEMBER 2017

The Board is embarking on a review of the longer-term sustainability of the dividend pay-out, taking into consideration of the economic income, the build-up of retained earnings and net asset value growth.

The Company has decided to provide an interim dividend guidance of 0.65 Singapore cents per ordinary share in the capital of the Company in respect of the financial year ending 31 December 2017. The interim dividend is expected to be declared in August 2017 together with the announcement of the 1H 2017 results and is expected to be paid in October 2017.

As per current practice, a final dividend guidance will be announced in November 2017 together with the announcement of the 3Q 2017 results.
By order of the Board of Directors Date: 11 May 2017 
_____________________________________________________________________________________________________________________

[weijian]

It's about time. Indeed most investors wouldn't be able to understand the "economic profit"

GLOBAL INVESTMENTS LIMITED – CHANGE IN DIVIDEND POLICY

The Board of Directors of Global Investments Limited (the “Company”) refers to its review of the longterm sustainability of the dividend payout of the Company as stated in the announcement made together with the release of interim dividend guidance on 11 May 2017.

The Company has been paying out the majority of the economic income received from its investments after payment or provision for operating and financing expenses as dividends. The economic income is not reported in the financial statements and hence investors have been unable to relate it to the dividends paid.

To better align the dividend payments with profit and ensure that the Company is able to pay dividend on a sustainable basis, the Company will endeavour to pay out most of the profit after tax after taking into consideration the Company’s requirements for future growth. The Company will declare dividend out of retained profit under certain circumstances.

http://infopub.sgx.com/FileOpen/29_20170...eID=466837

[cyclone]

Hearing of the Company’s proceedings against Babcock & Brown Global Investments Management Pty Ltd (BBGIM) and certain of its officers for, inter alia, false and misleading representations made to the Company in respect of its investments in railcar portfolios through Babcock & Brown Rail North America LLC, breaches of fiduciary duties and breaches of duty and contract was postponed to 11 May 2018.

[noobinvestors]

Hi
Please refer to my analysis below for Global Inv

https://writingofinvestingnoob.com/2018/12/11/global-investment-woes/ 

Summary:
We suggest to dividend lovers to take a look based on current price due to: -

• Net cash position hence minimal interest risk
  
  
• Heavy discount to NAV
  
  
• Well diversified portfolio
  
  
• Reasonable yield
  
  
• Experienced Management Team which is reputable in portfolio management, and vested in the Company
  
  
• Better alternative to unit trusts.
  

However, we do not suggest to invest significantly in this counter due to: -

• Large portion of fixed income investments in Coco bonds or below investment grade bonds which provide a lot downside risk;
  
  
• This is not a business with strong moat so less growth potential;
  
  
• Heavy load fees structure;
  
  
• Aggressive accounting valuation and disclosures that may discount its assets.