iFAST

[Curiousparty]

Family Office Forum Singapore by Bloomberg

Bloomberg Singapore recently hosted a virtual Family Office Forum, which examined the city state’s increasing prominence in a sector which is expected to see US$15 trillion transition to the next generation between now and 2030. Asian ultra-high-net-worth (UHNW) families are expected to account for a significant share of first generation owners crossing 60 years of age.

In his welcome remarks, Bloomberg’s ASEAN Head, Steven Yankelson, pointed to the growing appeal Singapore offers to investors in terms of access to pan-Asian and global opportunities and how it is attracting more US and European family offices, in addition to Asia-based families.

Monetary Authority of Singapore’s Deputy Director Spencer Hsu in his keynote speech noted that the number of family offices in Singapore grew five-fold between 2017 and 2019.

More than 150 participants across Singapore, Hong Kong and ASEAN attended the forum from a mix of single family offices, multi-family offices, consulting firms and private banks. According to results of the live audience poll, the prime mandate of Singapore-based family offices is in investment returns and asset allocation (47%) , private equity or direct deals (19%) and 9% are in managing private bank accounts.

Only 11% of family office managers indicated that they were involved in family succession or legacy planning – and only 4% considered their family office to be “very well” prepared for succession planning and inter-generational wealth transfer while 45% said they were either only a “little” or “not at all” prepared for these future transitions.

When asked to rate – from 1-5 – the level of discretion given to them by their principals, 64% of participants in the forum indicated that they have relatively high levels of discretion. Raffles Family Office Managing Partner Kendrick Lee sees this trend continuing and expects a shift among family offices in Asia towards more discretionary mandates in the next 10 years.

Mr. Yankelson sees Bloomberg playing a part to support this burgeoning market. He said: “We are seeing more professionals from asset management and hedge funds joining family offices and, as a result, the technology stacks required have also become increasingly sophisticated. We are excited to support the growth of this sector and will continue to play our part to be a technology partner for family offices.”


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[Curiousparty]

In my opinion, the current price of iFast is not richly valued at all. I beg to differ strongly from analyst’s views. Based on their track records, most of them are totally off their marks. Has anyone become millionaires because of following closely to analysist’s call? (laughing hahaha)

One can only imagine the sheer immense potential of the China market once the segment breaks even. We are not just talking about AUA of a few billions (for iFast) for the China’s segment. We are talking about 100 to 200 billion order AUA (far exceeding the segments in Singapore, Malaysia and Hong Kong aggregated together), given the trillions of dollars in the largely untapped and nascent wealth management industry in China. I will not delve into the technicalities of iFast’s model in China. The details are enclosed in the link below.

https://hubbis.com/article/china-puzzle-un...

Once China segment turns from loss making to zero profit, valuation is immediately improved by at least 40 to 50 cents (working: current 1.5 cents EPS x conservative PE of 30/35 = 40 - 50 cents). Mind you that we are not even talking about making any profit. Once the loss drag is removed, valuation is up immediately by 40 to 50 cents. Future earning potential is not factored in yet. If we are talking about future earning potential, I think the sky is the limit. I don’t know how to estimate. Probably $5 to $10 in terms of share price valuation.

Next I move on to the DB license. It is like a car retrofitted with a few turbo engines, boosting and giving the existing AUA the multiplier effect. Hence, a linear analysis (as estimated by many analysts) fly in face of conventional or linear stock analysis or evaluation. How does one estimate the so-called “turbo” or “multiple” effect? I have no idea. Perhaps, the more enlightened can help me shed light on this. With DB license, the AUA target of $100 billion by 2030 could perhaps be achieved within a much shorter timeframe.

iFast has not even reached the real critical mass in all the current markets (including Singapore)where the profit margins are on par with big comparable giants. So there is still a long runway to go.

So far, I have not seen many technical analysts making easy money. If technical charts are so easily deciphered and traded upon, we should be seeing lots of millionaire chartists around. Just need to short Dows in March 2020 and made millionaires, and buy right at the bottom, and made another a few millionaires on the way up (hahahaha)…

Those who are not convinced of the investment case for iFast will never buy iFast, regardless of its share price. So don’t need to waste time talking to them. Even if iFast drops to $1, they will say “lets wait until it drops to 80 cents. When it is 80 cents, they will say – let’s wait for it to drop to 70 cents”….

We have barely finished eating the appetizer. Main Courses have yet to be served!!!

[Curiousparty]

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[Curiousparty]

https://www.businesstimes.com.sg/banking...ealth-push


[LONDON] Schroders Plc, the UK' s largest standalone asset manager, has agreed to buy family office Sandaire as it expands its businesses serving super-rich clients.

London-based family office Sandaire, which runs £ 2.2 billion (S$3.86 billion), will become part of Schroders' Cazenove Capital wealth management division, according to a company statement on Friday.

Sandaire founder Alex Scott will be chairman of Schroders' global family-office services, a spokesperson said.

Schroders declined to disclose the terms of the deal.

" This acquisition will create one of the UK' s top multi-family offices and be a springboard for developing an exceptional global service," Peter Hall, global head of wealth management at Schroders, said in the statement.

The acquisition of Sandaire will fuel the growth of Cazenove Capital, which is responsible for £ 35.6 billion of client assets and caters to ultra-high-net-worth investors with units in Asia, the Channel Islands and Switzerland, according to the statement.

Schroders acquired the wealth management business of Singapore-based Thirdrock Group last year, merging it with its existing business in the city-state.

Schroders chief executive officer Peter Harrison has spearheaded a push into the lucrative wealth management business, which the company sees as an opportunity for growth with an aging UK population and increased pension freedoms.

The money manager last year launched a joint venture with Lloyds Banking Group called Schroders Personal Wealth, which serves clients with at least £100,000 to invest.

Sandaire was created in 1996 to manage the Scott family fortune after the sale of its Provincial Insurance business, according to the statement.

The acquisition is subject to regulatory approval.

BLOOMBERG

[EnSabahNur]

https://hubbis.com/article/china-puzzle-un...


We have barely finished eating the appetizer. Main Courses have yet to be served!!!

Thanks for sharing your views on iFast.
Do you have the Hubbis article?
The link doesn't work.

[weii]

https://hubbis.com/article/china-puzzle-un...


We have barely finished eating the appetizer. Main Courses have yet to be served!!!

Thanks for sharing your views on iFast.
Do you have the Hubbis article?
The link doesn't work.

Some Hubbis articles on IFAST which may be helpful:

https://hubbis.com/article/china-puzzle-...-for-ifast
https://www.hubbis.com/article/raffles-f...and-beyond

[EnSabahNur]

https://hubbis.com/article/china-puzzle-un...


We have barely finished eating the appetizer. Main Courses have yet to be served!!!

Thanks for sharing your views on iFast.
Do you have the Hubbis article?
The link doesn't work.

Some Hubbis articles on IFAST which may be helpful:

https://hubbis.com/article/china-puzzle-...-for-ifast
https://www.hubbis.com/article/raffles-f...and-beyond

Thank you. These are helpful indeed.

[Raks]

https://www.businesstimes.com.sg/compani...hare-price

IFAST Corp said its to-be-released unaudited financial results for the third quarter ended Sept 30 may explain unusual price movements in the company's share on Monday.

The brokerage platform and wealth manager was responding to the Singapore Exchange Regulation (SGX RegCo)'s queries, the second set issued to iFast in the past three months.

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Looks like iFast can only state the expectable: brokering businesses make good money this year.

Other catalysts such as shortlisted etc are still "speculative" until they are realized (too late to enter by then).
I guess that's the same reason why analysts call it "richly valued".

[¯|_(ツ)_/¯]

3Q2020 Result ended 30 Sep 2020
Revenue              $122m (vs 91m)
Operating profit      $ 17m (vs  7m)
Profit for the period $ 14m (vs  6m)
Dividend              0.8cts (vs 0.75)

https://links.sgx.com/FileOpen/iFAST-Res...eID=636124


The Group reported a new record quarterly net profit of $6.16 million in 3Q20, an increase of 150.6% compared to 3Q19. This was achieved on the back of a 35.7% YoY increase in net revenue and a 33.3% YoY increase in gross revenue. For the first 9 months of 2020, net profit grew 119.9% YoY, on the back of a 27.5% YoY increase in net revenue and a 33.2% YoY growth in gross revenue. 

Growth in profit was substantially higher than the growth in revenue. This shows the positive operating leverage and scalability of our business model. The Group’s profit before tax margin as a percentage of net revenue increased from 17.0% in 2019 to 28.3% in 9M20.

The improvement in the Group’s business shows that the Group continues to be a beneficiary of increased digital adoption in the wealth management industry. The improvements have been seen for both the B2C and B2B businesses. 

Net inflows of client assets registered a record $1.07 billion in 3Q20, raising the Group’s AUA to a record $12.59 billion as at 30 Sep 2020. Of the net inflows of $1.07 billion, 60.5% came from unit trusts. 

We believe that the robust growth seen by the Group this year has resulted from our past investments in building up a strong integrated digital wealth management platform. The Group will continue to work hard on various initiatives in all existing markets that the Group operates in to ensure that our medium to long term growth prospects will remain strong. 

Barring unforeseen circumstances, the Group expects the full year 2020 performance to show robust growth in profit and revenue compared to 2019.

Stay home and stay safe, everyone.

[Raks]

3Q2020 Result ended 30 Sep 2020
Revenue              $122m (vs 91m)
Operating profit      $ 17m (vs  7m)
Profit for the period $ 14m (vs  6m)
Dividend              0.8cts (vs 0.75)

https://links.sgx.com/FileOpen/iFAST-Res...eID=636124


The Group reported a new record quarterly net profit of $6.16 million in 3Q20, an increase of 150.6% compared to 3Q19. This was achieved on the back of a 35.7% YoY increase in net revenue and a 33.3% YoY increase in gross revenue. For the first 9 months of 2020, net profit grew 119.9% YoY, on the back of a 27.5% YoY increase in net revenue and a 33.2% YoY growth in gross revenue. 

Growth in profit was substantially higher than the growth in revenue. This shows the positive operating leverage and scalability of our business model. The Group’s profit before tax margin as a percentage of net revenue increased from 17.0% in 2019 to 28.3% in 9M20.

The improvement in the Group’s business shows that the Group continues to be a beneficiary of increased digital adoption in the wealth management industry. The improvements have been seen for both the B2C and B2B businesses. 

Net inflows of client assets registered a record $1.07 billion in 3Q20, raising the Group’s AUA to a record $12.59 billion as at 30 Sep 2020. Of the net inflows of $1.07 billion, 60.5% came from unit trusts. 

We believe that the robust growth seen by the Group this year has resulted from our past investments in building up a strong integrated digital wealth management platform. The Group will continue to work hard on various initiatives in all existing markets that the Group operates in to ensure that our medium to long term growth prospects will remain strong. 

Barring unforeseen circumstances, the Group expects the full year 2020 performance to show robust growth in profit and revenue compared to 2019.

Stay home and stay safe, everyone.

That's actually a very optimistic announcement, especially in the current covid business climate. "Scaleability". And the market responded. 

Growth and development are unfortunately not reflected by backwards-looking PE or PB ratio. 

Official optimism needs to be backed by greater certainty than our VB postings (please follow posting guidelines nevertheless). Therefore it's important that we have an active VB forum.