Global ETF / Asia Equity Strategy Earth/Strategic Metals ... · 1. "The ETFs specifically mentioned...
Transcript of Global ETF / Asia Equity Strategy Earth/Strategic Metals ... · 1. "The ETFs specifically mentioned...
1. "The ETFs specifically mentioned herein may not be recognised, authorised or otherwise registered in Singapore for retail distribution. This research is intended for
general circulation only and its contents do not take into the specific investment objectives, financial situation or particular needs of any particular person. Before
deciding to purchase any ETF, an investor should seek advice from a financial adviser regarding the suitability of the investment product, taking into account his specific
investment objectives, financial situation and particular needs.”
2. “DBS, in publishing this research on ETFs, and DBSV in circulating the research, are not and should not be taken or considered as having made an offer,
recommendation or solicitation to buy or sell the ETFs or to enter into a transaction or to participate in any particular trading or investment strategy. Any reference to
any specific company, financial product or asset class in whatever way is used for illustrative purposes only and does not constitute a recommendation on the same.”
ed: TH / sa: PY, CS
Bonding with Metals
Regional Equity Strategist
Joanne Goh, +65 68785233; [email protected] Regional Equity Research, [email protected]
• As global industrial production accelerates,
commodity prices for hot rolled steel, copper,
aluminum, nickel and zinc are the first to move
• Not a repeat of the “supercycle” but a “classic
commodity cycle” — first driven by supply constraints,
then by demand surge
• Investors can gain exposure to the uptrend through
selected Global ETFs and China/Korea/Indonesia
stocks
Industrial commodities have been on a tear since mid -2017
when the LME Index of Base Metals climbed to its highest
level since 2014. Copper, iron ore, and niche metals such as
cobalt and lithium all shot up to their new highs recently,
buoyed in part by the strongest and most widespread
growth since the financial crisis of 2008. With the metal
markets tightening due to underinvestment and producers’
attempts to rein in output, some investors are considering
this asset class for their investments.
It is still the supply issues rather than demand that have
provided the main impetus for the recovery in industrial
metals. This time around, China, the world’s largest
consumer in the commodity complex has prioritised cutting
pollution leading to restrictions in mines and smelters
including those for steel and coal. These clampdowns on the
supply side and lack of investments in new mines globally
could put metal commodities on a firm footing. It takes at
least five years and big bucks to get a mine up and running
into full production once economically viable quantities of
copper, nickel or zinc have been discovered.
The key message for investors is to pick and choose these
metal/mining commodities and the companies that produce
them carefully. Each commodity has its own unique story
and fundamentals. This is not the case where a rising tide
lifts all the boats.
List of securities to gain exposure to Metals upcycle
Source: ETF Asia Analytics, Inc., Bloomberg Finance L.P., DBS Bank, February 23, 2018
Price
Bloomberg (US$) A UM Expense
Company Code (23 F eb) (US$) (%)
ETF exposure
SPDR S&P Metals and
Mining ETFXME US 37.36 $988.40 0.35%
iShares MSCI Metals and
Mining Producers ETFPICK US 36.49 585.6 0.39
Global X Lithium and
Battery Tech ETFLIT US 37.23 1,117.00 0.76
VanEck Vectors Rare
Earth/Strategic Metals ETFREMX US 30.44 232.4 0.57
VanEck Vectors Steel ETF SLX US 50.79 177.6 0.55
Global X Copper Miners ETF CPOX US 28.11 86.6 0.65
PowerShares DB Base Metals
FundDBB US 19.36 363.3 0.82
Bloomberg Price Target Upside
Stock exposure Code (23 F eb) price (%)
China Molybdenum Co Ltd 3993 HK HK$6.75 $8.00 18.5%
PT Timah TINS IJ Rp1070 under rev iew under rev iew
Korea Zinc 010130 KS KRW516000 610,000 18.2%
DBS Group Research . Equity 27 Feb 2017
Global ETF / Asia Equity Strategy
Investment focus Refer to important disclosures at the end of this report
Page 1
Page 2
Flash Note
Overview
The Global Economic Order is rapidly changing and creating
tremendous opportunities for metal and mining investors. As
global industrial production accelerates, commodity prices for
hot rolled steel, copper, aluminum, nickel and zinc are the
first to move. These “base metals” are the backbone of the
world’s industrial economy and are used in cars, buildings
and just about every consumer item.
Industrial commodities have been on a tear since mid -2017
when the LME Index of Base Metals climbed to its highest
level since 2014. Copper, iron ore, and niche metals such as
cobalt and lithium all shot up to their new highs recently,
buoyed in part by the strongest and most widespread growth
since the financial crisis of 2008. With the metal markets
tightening due to underinvestment and producers’ attempts
to rein in output, some investors are considering this asset
class for their investments.
Just as different equity sectors have unique characteristics
that can respond very differently to various economic
scenarios, commodities behave the same way. Note the
following issues relevant to metals and mining:
• Industrial metals such as copper or aluminium tend to be
cyclical with performance linked to expectations for
economic growth particularly in the manufacturing
sector.
• The metals/mining category is driven by the dynamics of
supply and demand. As canonical models suggest, where
these two elements meet, the price of the commodity is
then set. While this current metals cycle appears to be
turning up, this is not a repeat of the “supercycle” record
highs during the past decade with a big upward shift
driven by China as the 800-pound gorilla of commodity
consumption in the 2007 bull market. Rather we are in a
“classic commodity cycle” and this time round, while
demand is strong, it is driven by supply constraints rather
than a surge in consumption.
• There has been under-investment in the last decade in
metals and the struggles of the mining firms have been
well documented with capex reductions, risks of credit
downgrades on their total debt and while supply is at a
relatively comfortable level, investors are starting to see
producers taking risks to store up for the future. Given
the recovery in metal prices, it is interesting to see the
reported rebound in earnings of titans Anglo American
and Glencore.
• The metals/mining industry is seeing new demand for
applications with growth projections in electric cars.
Nickel, for long a laggard base metal, is set to see
demand soar as battery use grows while copper usage
should also rise with the number of charging points.
Cobalt, essential to modern battery technology, is the
industry’s new darling and essentially a by-product of
nickel and copper production. About 50% of cobalt
concentrates come from the Democratic Republic of
Congo. The demand for cobalt in electric car usage
competes with the existing demand from superalloys
used in the aerospace industry. Apple, with its iPhones
and iPads, is in talks to buy cobalt directly from miners.
Cobalt is an essential ingredient in lithium-ion batteries
for smartphones while lithium cobalt oxide is a game
changer in hybrid vehicle and electric vehicles, where the
main problem has been with battery storage. Lithium is
thus the main material in growing demand.
• It is still the supply issues rather than demand that have
provided the main impetus for the recovery in industrial
metals. This time around, China, the world’s largest
consumer in the commodity complex, has prioritised
cutting pollution leading to restrictions in mines and
smelters including those for steel and coal. These
clampdowns from the supply side and lack of investments
in new mines globally could put metal commodities on a
firm footing. It takes at least five years and big bucks to
get a mine up and running into full production once
economically viable quantities of copper, nickel or zinc
have been discovered.
• The key message for investors is to pick and choose these
metal/mining commodities and the companies that
produce them carefully. Each commodity has its own
unique story and fundamentals. This is not the case
where a rising tide lifts all the boats.
Why Invest in Industrial Metals and Mining ETFs:
• The outlook for macroeconomic, geological and
investment theme for 2018 supports an end-user demand
for base metals as well as good prices. These
commodities of basic raw materials are linked to the
component of inflation, making them ideal inflation
hedges.
• The long-term negative relationship between
commodities and other asset classes is well documented.
Adding assets like commodities with low correlations
provides for better diversification and risk-adjusted
returns.
• China continues to sustain its super-economic growth
power status in the world, e.g., China’s One Belt, One
Road Agenda calls for over 900 infrastructure projects
worldwide (with US$1.5tr spending) that need these
mining resources.
Page 2
Page 3
Flash Note
The highlights of each of the industrial metals’ outlook in
2018:
1) The outlook for copper is attractive as demand outstrips
supply with more industrial applications. Meanwhile,
cobalt and lithium face surging demand from electric cars
and consumer electronics.
2) Iron ore is expected to remain in surplus over the near
term but with structural shift calling for cleaner
environmental improvements, iron ores are attracting
more premium prices.
3) Nickel and zinc are set to operate at a deficit with the
elevated demand for auto production and stainless steel.
Getting exposure through global ETFs
Metal ETFs may pose a challenge to investors as commodity
ETFs are structured very differently from most typical bond or
stock funds. The logic for owning commodities is simple —
they provide diversification to holdings of traditional stocks
and bonds.
Diversification has its downside — of the 90 ETF commodity
funds tracked by Morningstar, the majority of them have
negative five-year trailing results. Also, while the logic of
owning them is simple, the execution is not. First, there is a
question of structure. Although exchange traded funds are
generally referred to as ETFs, they are typically exchange
traded notes or partnerships. Many of the most popular
commodity funds are known as ETNs or exchange traded
notes whereas ETFs represent an ownership in the underlying
asset.
ETNs are senior, unsecured debt securities, and are structured
more like bonds with a promise to pay something. ETNs such
as the iPath Bloomberg Commodity Index ETN (DJP) are taxed
like stocks but are debt instruments (critics equate them to
uncollateralised loans which means there is also the risk of
issuer default). The US$35.4bn Gold Trust (GLD), which is the
largest ETF Commodity product by far, is actually backed by
gold bullions. The trade-off is that it and other similar funds
are categorised as collectibles for tax purposes which means
long-term gains are taxed as ordinary income though capped
at 28%. Still, other funds that are structured as commodity
pools are taxed as partnerships. Investors have to deal with
Schedule K1 tax forms which add to another tax complexity.
Of course, for many investors, the appeal of commodity ETFs
is the ability to make tactical bets. So far in 2018, commodity
ETFs have posted net inflows of US$450m or 0.65% of the
assets under management.
• If it is true diversity you seek, it would be wise to choose
your vehicles carefully by adhering to our firm’s proven
disciplined process and selection of investment vehicles
with proper risk-adjusted strategic returns.
• Investors can gain exposure through the list of ETFs with
diversified stocks or through individual stocks we cover in
Asia:-:
Consider these Metals and Mining ETFs:
XME US
SPDR S&P Metals & Mining ETF is an exchange-traded fund
incorporated in the US. The fund's objective is to replicate as
closely as possible the performance of the S&P Metals &
Mining Select Industry Index, an equal-weighted index.
PICK US
iShares MSCI Global Select Metals & Mining Producers ETF is
an exchange-traded fund incorporated in the US. The ETF
seeks investment results that correspond generally to the
price and yield performance, before fees and expenses, of
the MSCI ACWI Select Metals & Mining Producers Ex Gold &
Silver Investable Market Index.
LIT US
Global X Lithium & Battery Tech ETF is an exchange-traded
fund incorporated in the US. The fund seeks investment
results that correspond to the price and yield performance of
the Solactive Global Lithium Index.
REMX US
VanEck Vectors Rare Earth/Strategic Metals ETF is an
exchange-traded fund in the US. The fund seeks to replicate
the performance of the MVIS Rare Earth/Strategic Metals
Index. The constituents include a majority of mining
companies domiciled in the US, China, and Australia. The
fund rebalances its holdings on a quarterly basis and weights
them based on market cap.
SLX US
VanEck Vectors Steel Index Fund is an exchange-traded fund
incorporated in the US. The fund seeks investment results
that correspond to the price and yield of the NYSE Arca Steel
Index.
COPX US
The Global X Copper Miners ETF is an exchange-traded fund
incorporated in the US. The fund seeks to provide investment
results that correspond generally to the price and yield
performance, before fees and expenses, of the Solactive
Global Copper Miners Index ("Underlying Index").
Page 3
Page 4
Flash Note
Getting exposure through stocks listed in Asia:-
In Asia, we recommend the following mining stocks under
our coverage to ride on the industry upcycle:-
China Molybdenum Co Ltd (H) (3993 HK, BUY, 12-
mth Target Price: HK$8.00)
CMOC is a scarce cobalt player. The company is a leading
global copper miner and producer with strong cost
advantage, and the world’s second largest cobalt miner and
producer. We think the company is well leveraged to the
upcycle of copper and cobalt. In 2018, for copper, we
foresee tightening raw material supply due to: i) collapse in
investment in the copper sector since the 2015-16
downcycle; ii) more than forty mine union enterprise
agreements would be renegotiated in top copper mining
countries Chile and Peru. For cobalt, the upcycle is driven by
limited raw material resources and strong growth in new
energy vehicles (NEV). The global cobalt supply deficit started
in 2016 and we expect this deficit to widen further owing to
limited output prospects as cobalt is a by-product, and
China’s consumption growth of 6-9% in 2018-20 driven by
NEV growth.
PT Timah (TINS IJ, BUY, 12-mth Target Price: Under Review)
As the world’s third largest refined tin producer and
Indonesia’s biggest tin player, its share price largely tracks tin
prices. Despite positive earnings surprise in 3Q17, its share
price had been weighed down by weak tin prices on
concerns over higher tin metal exports from China. However,
LME tin price has been gaining strongly YTD in 2018, hitting
a 3.5-year high in Feb 2018. Simultaneously, PT Timah’s
share price has also risen substantially (up c.40% YTD). We
expect its OP to climb up y-o-y in 2018 thanks to higher tin
prices and its facilities upgrade that would lower tin ore costs.
Also, we hold positive long-term perspective on tin market, in
anticipation of sustained deficit in the global refined tin
market and new tin demand created by technological shift
(chemicals, batteries and energy-related technologies). We
are currently reviewing our TP on the stock.
Korea Zinc Co (010130 KS, BUY, 12-mth Target Price:
KRW610,000)
Zinc and lead prices on LME (London Metal Exchange) have
risen 8.4% and 4.1% YTD, respectively. Amid tight market
conditions, higher metal prices will continue to underpin
Korea Zinc’s earnings growth. According to our sensitivity
analysis, 1% increase in zinc and lead prices lift its operating
profits by 2.3% and 1.3% respectively. The company’s sales
volume target for its major products in 2018 are: 650k tons
of zinc (+9% y-o-y), 410k tons of lead (-3% y-o-y) and 1.9k
tons of silver (-5% y-o-y). The decline in sales volume for lead
and silver would stem from shortage of lead ore. In 2018, we
expect zinc price growth to likely decelerate, while lead price
will strengthen on higher demand from hybrid automobiles
and drive earnings growth. We recommend a BUY, with
KRW610,000 TP which is derived from a residual income
valuation model (RIM) and implies 15.8x FY18F PE and 1.6x
FY18F P/BV.
Key parameters for list of ETFs
Source: ETF Asia Analytics, Inc., Bloomberg Finance L.P., February 23, 2018
Key valuation metric of stock list
Source: DBS Bank
12-mth
Mkt Price Target
Bloomberg Cap (S$) Price %
Company Code (US$m) 23-F eb (S$) Upside Rcmd 18F 19F 18F 19F 18F 19F 18F 19F 18F 19F
China Molybdenum
Co Ltd
3993 HK Equity 18,636 6.750 8.000 19% BUY 24.9x 22.1x 7.8x 6.6x 2.9x 2.7x 2.3% 2.6% 12% 17%
PT Timah TINS IJ Equity 583 1,070 under
review
under
review
under
review
22.2x 18.8x 7.6x 6.8x 1.3x 1.2x 1.3% 1.5% 6% 12%
Korea Zinc 010130 KS Equity 9,042 516,000 610,000 18% BUY 13.5x 12.7x 6.9x 6.2x 1.5x 1.4x 1.6% 1.6% 12% 16%
Price/
BV
(x)PE (x)
EV /EBITDA
(x) (%)
ROEDiv Y ld
(%)
Bloomberg Ticker
Metals & Mining ETFs Price (US $)
Assets Under Mgmt. ($mm)
Avg. Vol. (000)
Expense Ratio %
YTD %
XME SPDR S&P Metals and Mining ETF $37.36 $988.4 1,238 0.35% 2.22%
PICK iShares MSCI Metals and Mining Producers ETF 36.49 585.6 144 0.39 5.37
LIT Global X Lithium and Battery Tech ETF 37.23 1,117.0 353 0.76 -3.95
REMX VanEck Vectors Rare Earth/Strategic Metals ETF 30.44 232.4 151 0.57 1.16
SLX VanEck Vectors Steel ETF 50.79 177.6 41 0.55 10.77
CPOX Global X Copper Miners ETF 28.11 86.6 21 0.65 2.78
DBB PowerShares DB Base Metals Fund 19.36 363.3 164 0.82 -0.23
Page 4
XME US EquityFund Objective & Information Risk profile (refer to notes below)
EIP / SIP product type SIP
Replication strategy Full
Leverage No
Inverse No
ETF / ETN type ETF
Fund vs. Benchmark Performance (1-year) Inception Date
30D AVG Daily Turnover 37.3k Pri. Exchange LeverageBeta to MSCI World Index 2.05 Traded Currency Index PE1YR Tracking Error (NAV) 0.06% Traded Lots Index PB
Fund Data Fund Allocation (Geographical and Sector)
Fund ManagerTotal Annual Fees (%) 0.35%Replication strategyPrice (USD)NAV (USD)Premium/ (discount) to NAVAUM (USD million)Net inflows for the month (23.94)Average PE 17.2xAverage PB 1.6xDividend Yield 1.1%Dividend Frequency Quarter
Top 10 Holdings (%)
Century Aluminum Co 5.8United States Steel Corp 5.1Freeport-McMoRan Inc 5.1CONSOL Energy Inc 5.0Commercial Metals Co 4.7Allegheny Technologies Inc 4.7Peabody Energy Corp 4.6Cleveland-Cliffs Inc 4.5Steel Dynamics Inc 4.5Arch Coal Inc 4.5Source: Bloomberg Finance L.P., DBS Bank
SPDR S&P Metals & Mining ETF (U.S.)
Precious Metals Equity
22/06/2006NYSE Arca 0
1. "The ETFs specifically mentioned herein may not be recognised, authorised or otherwise registered in Singapore for retail distribution. This research is intended for
general circulation only and its contents do not take into the specific investment objectives, financial situation or particular needs of any particular person. Before
deciding to purchase any ETF, an investor should seek advice from a financial adviser regarding the suitability of the investment product, taking into account his specific
investment objectives, financial situation and particular needs.”
2. “DBS, in publishing this research on ETFs, and DBSV in circulating the research, are not and should not be taken or considered as having made an offer,
recommendation or solicitation to buy or sell the ETFs or to enter into a transaction or to participate in any particular trading or investment strategy. Any reference to any
specific company, financial product or asset class in whatever way is used for illustrative purposes only and does not constitute a recommendation on the same.”
-0.02%
Full
SPDR S&P Metals & Mining ETF is an exchange-traded fundincorporated in the USA. The Fund's objective is to replicate as closelyas possible the performance of the S&P Metals & Mining Select IndustryIndex, an equal-weighted index.
Notes to risk profile:-1. EIP or SIP (for Singapore-based investors) refers to the product being classified as Excluded or Specified Investment Product. SIPs havestructures, features and risks that may be more complex and require more knowledge to understand. Retail investors are required to be provided withenhanced safeguards, including an assessment of these investors’ investment knowledge or experience.
2. Leveraged and inverse ETFs pursue daily leveraged investment objectives which means they are riskier than alternatives which do not useleverage. They seek daily goals and should not be expected to track the underlying index over periods longer than one day. They are not suitable forall investors and should be utilized only by investors who understand leverage risk and who actively manage their investments.3. ETF / ETN type: Both are designed to provide investors access to the returns of various market benchmarks. ETNs are structured products thatare issued as senior debt notes, while ETFs represent a stake in an underlying asset.
1 1.6xUSD 15.4x
988.43
26-Feb-18
State Street ETF/USA
37.3637.37
99.10.9
0 20 40 60 80 100
U.S.Canada
76.518.2
0.15.2
0 20 40 60 80 100
Basic MaterialsEnergy
GovernmentIndustrial
0
5000
10000
15000
20
30
40
50
27/02/2017 27/04/2017 27/06/2017 27/08/2017 27/10/2017 27/12/2017NAV SPDR S&P Metals & Mining ETF underlying S&P Metals and Mining Select I rebase
Volume traded (R, 000s)
Page 5
PICK US EquityFund Objective & Information Risk profile (refer to notes below)
EIP / SIP product type SIP
Replication strategy Full
Leverage No
Inverse No
ETF / ETN type ETF
Fund vs. Benchmark Performance (1-year) Inception Date
30D AVG Daily Turnover 36.3k Pri. Exchange LeverageBeta to MSCI World Index 1.93 Traded Currency Index PE1YR Tracking Error (NAV) 0.33% Traded Lots Index PB
Fund Data Fund Allocation (Geographical and Sector)
Fund ManagerTotal Annual Fees (%) 0.39%Replication strategyPrice (USD)NAV (USD)Premium/ (discount) to NAVAUM (USD million)Net inflows for the month 38.53Average PE 15.2xAverage PB 1.5xDividend Yield 2.3%Dividend Frequency Semi-Anl
Top 10 Holdings (%)
BHP Billiton Ltd 8.4Rio Tinto PLC 7.7Glencore PLC 7.6BHP Billiton PLC 5.0Vale SA 4.9Anglo American PLC 3.7Rio Tinto Ltd 3.0Freeport-McMoRan Inc 2.9POSCO 2.7ArcelorMittal 2.6Source: Bloomberg Finance L.P., DBS Bank
iShares MSCI Global Metals & M (Global)
Undefined Equity Equity
02/02/2012BATS 0
1. "The ETFs specifically mentioned herein may not be recognised, authorised or otherwise registered in Singapore for retail distribution. This research is intended for
general circulation only and its contents do not take into the specific investment objectives, financial situation or particular needs of any particular person. Before
deciding to purchase any ETF, an investor should seek advice from a financial adviser regarding the suitability of the investment product, taking into account his specific
investment objectives, financial situation and particular needs.”
2. “DBS, in publishing this research on ETFs, and DBSV in circulating the research, are not and should not be taken or considered as having made an offer,
recommendation or solicitation to buy or sell the ETFs or to enter into a transaction or to participate in any particular trading or investment strategy. Any reference to any
specific company, financial product or asset class in whatever way is used for illustrative purposes only and does not constitute a recommendation on the same.”
0.94%
Full
iShares MSCI Global Select Metals & Mining Producers ETF is anexchange-traded fund incorporated in the USA. The ETF seeksinvestment results that correspond generally to the price and yieldperformance, before fees and expenses, of the MSCI ACWI SelectMetals & Mining Producers Ex Gold & Silver Investable Market Index.
Notes to risk profile:-1. EIP or SIP (for Singapore-based investors) refers to the product being classified as Excluded or Specified Investment Product. SIPs havestructures, features and risks that may be more complex and require more knowledge to understand. Retail investors are required to be provided withenhanced safeguards, including an assessment of these investors’ investment knowledge or experience.
2. Leveraged and inverse ETFs pursue daily leveraged investment objectives which means they are riskier than alternatives which do not useleverage. They seek daily goals and should not be expected to track the underlying index over periods longer than one day. They are not suitable forall investors and should be utilized only by investors who understand leverage risk and who actively manage their investments.3. ETF / ETN type: Both are designed to provide investors access to the returns of various market benchmarks. ETNs are structured products thatare issued as senior debt notes, while ETFs represent a stake in an underlying asset.
1 1.6xUSD 15.9x
585.60
26-Feb-18
iShares ETFs/USA
36.4936.15
12.15.0
14.90.22.0
7.82.9
1.61.10.30.2
0 20 40 60 80 100
U.S.Canada
U.K.France
GermanySwitzerland
LuxembourgSwedenNorwayFinland
Netherlands
97.00.40.30.0
2.3
0 20 40 60 80 100
Basic MaterialsEnergy
FinancialGovernment
Industrial
0
500
1000
1500
20
25
30
35
40
27/02/2017 27/04/2017 27/06/2017 27/08/2017 27/10/2017 27/12/2017NAV iShares MSCI Global Metals & M underlying MSCI ACWI Sel Metal & Mining P rebase
Volume traded (R, 000s)
Page 6
LIT US EquityFund Objective & Information Risk profile (refer to notes below)
EIP / SIP product type SIP
Replication strategy Full
Leverage No
Inverse No
ETF / ETN type ETF
Fund vs. Benchmark Performance (1-year) Inception Date
30D AVG Daily Turnover 37.1k Pri. Exchange LeverageBeta to MSCI World Index 1.18 Traded Currency Index PE1YR Tracking Error (NAV) 0.76% Traded Lots Index PB
Fund Data Fund Allocation (Geographical and Sector)
Fund ManagerTotal Annual Fees (%) 0.76%Replication strategyPrice (USD)NAV (USD)Premium/ (discount) to NAVAUM (USD million)Net inflows for the month (3.01)Average PE 88.4xAverage PB 2.5xDividend Yield 3.4%Dividend Frequency Annual
Top 10 Holdings (%)
Albemarle Corp 17.1FMC Corp 15.8Sociedad Quimica y Minera de C 7.5EnerSys 5.4GS Yuasa Corp 5.3Panasonic Corp 5.3LG Chem Ltd 5.2Tesla Inc 4.8BYD Co Ltd 4.7Samsung SDI Co Ltd 4.6Source: Bloomberg Finance L.P., DBS Bank
Global X Lithium & Battery Tec (Global)
Sector Fund-Energy Equity
23/07/2010NYSE Arca 0
1. "The ETFs specifically mentioned herein may not be recognised, authorised or otherwise registered in Singapore for retail distribution. This research is intended for
general circulation only and its contents do not take into the specific investment objectives, financial situation or particular needs of any particular person. Before
deciding to purchase any ETF, an investor should seek advice from a financial adviser regarding the suitability of the investment product, taking into account his specific
investment objectives, financial situation and particular needs.”
2. “DBS, in publishing this research on ETFs, and DBSV in circulating the research, are not and should not be taken or considered as having made an offer,
recommendation or solicitation to buy or sell the ETFs or to enter into a transaction or to participate in any particular trading or investment strategy. Any reference to any
specific company, financial product or asset class in whatever way is used for illustrative purposes only and does not constitute a recommendation on the same.”
0.57%
Full
Global X Lithium & Battery Tech ETF is an exchange-traded fundincorporated in the USA. The Fund seeks investment results thatcorrespond to the price and yield performance of the Solactive GlobalLithium Index.
Notes to risk profile:-1. EIP or SIP (for Singapore-based investors) refers to the product being classified as Excluded or Specified Investment Product. SIPs havestructures, features and risks that may be more complex and require more knowledge to understand. Retail investors are required to be provided withenhanced safeguards, including an assessment of these investors’ investment knowledge or experience.
2. Leveraged and inverse ETFs pursue daily leveraged investment objectives which means they are riskier than alternatives which do not useleverage. They seek daily goals and should not be expected to track the underlying index over periods longer than one day. They are not suitable forall investors and should be utilized only by investors who understand leverage risk and who actively manage their investments.3. ETF / ETN type: Both are designed to provide investors access to the returns of various market benchmarks. ETNs are structured products thatare issued as senior debt notes, while ETFs represent a stake in an underlying asset.
1 2.9xUSD 41.4x
1117.06
26-Feb-18
Global X ETFs/USA
37.2337.02
43.43.6
0.10.2
10.62.0
11.44.7
11.64.9
7.5
0 20 40 60 80 100
U.S.CanadaFrance
SwitzerlandJapan
Hong KongSouth Korea
TaiwanAustralia
ChinaChile
60.84.6
14.819.8
0 20 40 60 80 100
Basic MaterialsCommunications
Consumer, CyclicalIndustrial
0
1000
2000
3000
20
30
40
50
27/02/2017 27/04/2017 27/06/2017 27/08/2017 27/10/2017 27/12/2017NAV Global X Lithium & Battery Tec underlying Solactive Global Lithium Index rebase
Volume traded (R, 000s)
Page 7
REMX US EquityFund Objective & Information Risk profile (refer to notes below)
EIP / SIP product type SIP
Replication strategy Full
Leverage No
Inverse No
ETF / ETN type ETF
Fund vs. Benchmark Performance (1-year) Inception Date
30D AVG Daily Turnover 30.3k Pri. Exchange LeverageBeta to MSCI World Index 1.82 Traded Currency Index PE1YR Tracking Error (NAV) 2.48% Traded Lots Index PB
Fund Data Fund Allocation (Geographical and Sector)
Fund ManagerTotal Annual Fees (%) 0.57%Replication strategyPrice (USD)NAV (USD)Premium/ (discount) to NAVAUM (USD million)Net inflows for the month (7.18)Average PE 36.4xAverage PB 2.8xDividend Yield 2.9%Dividend Frequency Annual
Top 10 Holdings (%)
China Molybdenum Co Ltd 8.7China Northern Rare Earth Grou 6.8Xiamen Tungsten Co Ltd 6.5Eramet 6.2Iluka Resources Ltd 6.1Toho Titanium Co Ltd 6.1OSAKA Titanium Technologies Co 6.0Tronox Ltd 5.8Cia Ferro Ligas da Bahia - FER 5.4Assore Ltd 4.9Source: Bloomberg Finance L.P., DBS Bank
VanEck Vectors Rare Earth/Stra (Global)
Undefined Equity Equity
28/10/2010NYSE Arca 0
1. "The ETFs specifically mentioned herein may not be recognised, authorised or otherwise registered in Singapore for retail distribution. This research is intended for
general circulation only and its contents do not take into the specific investment objectives, financial situation or particular needs of any particular person. Before
deciding to purchase any ETF, an investor should seek advice from a financial adviser regarding the suitability of the investment product, taking into account his specific
investment objectives, financial situation and particular needs.”
2. “DBS, in publishing this research on ETFs, and DBSV in circulating the research, are not and should not be taken or considered as having made an offer,
recommendation or solicitation to buy or sell the ETFs or to enter into a transaction or to participate in any particular trading or investment strategy. Any reference to any
specific company, financial product or asset class in whatever way is used for illustrative purposes only and does not constitute a recommendation on the same.”
0.53%
Full
VanEck Vectors Rare Earth/Strategic Metals ETF is an exchange-traded fund in the USA. The Fund seeks to replicate the performance ofthe MVIS Rare Earth/Strategic Metals Index. The constituents include amajority of mining companies domiciled in the US, China, and Australia.The Fund rebalances the holdings on a quarterly basis and market capweights them.
Notes to risk profile:-1. EIP or SIP (for Singapore-based investors) refers to the product being classified as Excluded or Specified Investment Product. SIPs havestructures, features and risks that may be more complex and require more knowledge to understand. Retail investors are required to be provided withenhanced safeguards, including an assessment of these investors’ investment knowledge or experience.
2. Leveraged and inverse ETFs pursue daily leveraged investment objectives which means they are riskier than alternatives which do not useleverage. They seek daily goals and should not be expected to track the underlying index over periods longer than one day. They are not suitable forall investors and should be utilized only by investors who understand leverage risk and who actively manage their investments.3. ETF / ETN type: Both are designed to provide investors access to the returns of various market benchmarks. ETNs are structured products thatare issued as senior debt notes, while ETFs represent a stake in an underlying asset.
1 2.4xUSD 60.7x
232.40
26-Feb-18
VanEck Vectors ETFs/USA
30.4430.28
5.86.16.2
16.35.5
20.14.84.9
24.95.4
0 20 40 60 80 100
U.S.CanadaFranceJapan
Hong KongAustraliaMalaysia
South AfricaChinaBrazil
100.00.00.0
0 20 40 60 80 100
Basic MaterialsFinancial
Government
0
200
400
600
800
20
25
30
35
27/02/2017 27/04/2017 27/06/2017 27/08/2017 27/10/2017 27/12/2017NAV VanEck Vectors Rare Earth/Stra underlying MVIS Global Rare Earth/Strateg rebase
Volume traded (R, 000s)
Page 8
SLX US EquityFund Objective & Information Risk profile (refer to notes below)
EIP / SIP product type SIP
Replication strategy Full
Leverage No
Inverse No
ETF / ETN type ETF
Fund vs. Benchmark Performance (1-year) Inception Date
30D AVG Daily Turnover 49.5k Pri. Exchange LeverageBeta to MSCI World Index 2.35 Traded Currency Index PE1YR Tracking Error (NAV) 0.68% Traded Lots Index PB
Fund Data Fund Allocation (Geographical and Sector)
Fund ManagerTotal Annual Fees (%) 0.55%Replication strategyPrice (USD)NAV (USD)Premium/ (discount) to NAVAUM (USD million)Net inflows for the month 4.45Average PE 14.4xAverage PB 2.2xDividend Yield 2.2%Dividend Frequency Annual
Top 10 Holdings (%)
Rio Tinto PLC 11.0Vale SA 8.7Ternium SA 8.6Vedanta Ltd 7.4Gerdau SA 5.5Cia Siderurgica Nacional SA 5.2United States Steel Corp 5.0Tenaris SA 5.0ArcelorMittal 4.6Nucor Corp 4.6Source: Bloomberg Finance L.P., DBS Bank
VanEck Vectors Steel ETF (Global)
Undefined Equity Equity
16/10/2006NYSE Arca 0
1. "The ETFs specifically mentioned herein may not be recognised, authorised or otherwise registered in Singapore for retail distribution. This research is intended for
general circulation only and its contents do not take into the specific investment objectives, financial situation or particular needs of any particular person. Before
deciding to purchase any ETF, an investor should seek advice from a financial adviser regarding the suitability of the investment product, taking into account his specific
investment objectives, financial situation and particular needs.”
2. “DBS, in publishing this research on ETFs, and DBSV in circulating the research, are not and should not be taken or considered as having made an offer,
recommendation or solicitation to buy or sell the ETFs or to enter into a transaction or to participate in any particular trading or investment strategy. Any reference to any
specific company, financial product or asset class in whatever way is used for illustrative purposes only and does not constitute a recommendation on the same.”
0.09%
Full
VanEck Vectors Steel Index Fund is an exchange-traded fundincorporated in the USA. The Fund seeks investment results thatcorrespond to the price and yield of the NYSE Arca Steel Index.
Notes to risk profile:-1. EIP or SIP (for Singapore-based investors) refers to the product being classified as Excluded or Specified Investment Product. SIPs havestructures, features and risks that may be more complex and require more knowledge to understand. Retail investors are required to be provided withenhanced safeguards, including an assessment of these investors’ investment knowledge or experience.
2. Leveraged and inverse ETFs pursue daily leveraged investment objectives which means they are riskier than alternatives which do not useleverage. They seek daily goals and should not be expected to track the underlying index over periods longer than one day. They are not suitable forall investors and should be utilized only by investors who understand leverage risk and who actively manage their investments.3. ETF / ETN type: Both are designed to provide investors access to the returns of various market benchmarks. ETNs are structured products thatare issued as senior debt notes, while ETFs represent a stake in an underlying asset.
1 N.A.USD N.A.
177.61
26-Feb-18
VanEck Vectors ETFs/USA
50.7950.75
37.811.0
18.24.1
19.57.4
2.0
0 20 40 60 80 100
U.S.U.K.
LuxembourgSouth Korea
BrazilIndia
Russia
88.20.7
11.2
0 20 40 60 80 100
Basic MaterialsEnergy
Industrial
0
200
400
600
800
20
30
40
50
60
27/02/2017 27/04/2017 27/06/2017 27/08/2017 27/10/2017 27/12/2017NAV VanEck Vectors Steel ETF underlying NYSE Arca Steel Index rebase
Volume traded (R, 000s)
Page 9
COPX US EquityFund Objective & Information Risk profile (refer to notes below)
EIP / SIP product type SIP
Replication strategy Full
Leverage No
Inverse No
ETF / ETN type ETF
Fund vs. Benchmark Performance (1-year) Inception Date
30D AVG Daily Turnover 27.8k Pri. Exchange LeverageBeta to MSCI World Index 2.32 Traded Currency Index PE1YR Tracking Error (NAV) 0.90% Traded Lots Index PB
Fund Data Fund Allocation (Geographical and Sector)
Fund ManagerTotal Annual Fees (%) 0.65%Replication strategyPrice (USD)NAV (USD)Premium/ (discount) to NAVAUM (USD million)Net inflows for the month (4.12)Average PE 25.7xAverage PB 1.5xDividend Yield 1.5%Dividend Frequency Annual
Top 10 Holdings (%)
First Quantum Minerals Ltd 6.0Zijin Mining Group Co Ltd 6.0Teck Resources Ltd 5.9Freeport-McMoRan Inc 5.8Southern Copper Corp 5.3Glencore PLC 5.1Grupo Mexico SAB de CV 4.9OZ Minerals Ltd 4.8Hudbay Minerals Inc 4.7KAZ Minerals PLC 4.6Source: Bloomberg Finance L.P., DBS Bank
Global X Copper Miners ETF (Global)
Precious Metals Equity
20/04/2010NYSE Arca 0
1. "The ETFs specifically mentioned herein may not be recognised, authorised or otherwise registered in Singapore for retail distribution. This research is intended for
general circulation only and its contents do not take into the specific investment objectives, financial situation or particular needs of any particular person. Before
deciding to purchase any ETF, an investor should seek advice from a financial adviser regarding the suitability of the investment product, taking into account his specific
investment objectives, financial situation and particular needs.”
2. “DBS, in publishing this research on ETFs, and DBSV in circulating the research, are not and should not be taken or considered as having made an offer,
recommendation or solicitation to buy or sell the ETFs or to enter into a transaction or to participate in any particular trading or investment strategy. Any reference to any
specific company, financial product or asset class in whatever way is used for illustrative purposes only and does not constitute a recommendation on the same.”
0.54%
Full
The Global X Copper Miners ETF is an exchange-traded fundincorporated in the USA. The seeks to provide investment results thatcorrespond generally to the price and yield performance, before feesand expenses, of the Solactive Global Copper Miners Index("Underlying Index").
Notes to risk profile:-1. EIP or SIP (for Singapore-based investors) refers to the product being classified as Excluded or Specified Investment Product. SIPs havestructures, features and risks that may be more complex and require more knowledge to understand. Retail investors are required to be provided withenhanced safeguards, including an assessment of these investors’ investment knowledge or experience.
2. Leveraged and inverse ETFs pursue daily leveraged investment objectives which means they are riskier than alternatives which do not useleverage. They seek daily goals and should not be expected to track the underlying index over periods longer than one day. They are not suitable forall investors and should be utilized only by investors who understand leverage risk and who actively manage their investments.3. ETF / ETN type: Both are designed to provide investors access to the returns of various market benchmarks. ETNs are structured products thatare issued as senior debt notes, while ETFs represent a stake in an underlying asset.
1 N.A.USD N.A.
86.64
26-Feb-18
Global X ETFs/USA
28.1127.96
5.831.7
5.85.14.4
0.80.9
10.44.9
10.24.2
0 20 40 60 80 100
U.S.Canada
U.K.Switzerland
SwedenJapan
Hong KongAustralia
MexicoChinaChile
99.9
0 20 40 60 80 100
Basic Materials
0
200
400
600
15
20
25
30
35
27/02/2017 27/04/2017 27/06/2017 27/08/2017 27/10/2017 27/12/2017NAV Global X Copper Miners ETF underlying Solactive Global Copper Miners rebase
Volume traded (R, 000s)
Page 10
DBB US EquityFund Objective & Information Risk profile (refer to notes below)
EIP / SIP product type SIP
Replication strategy Derivative
Leverage No
Inverse No
ETF / ETN type ETF
Fund vs. Benchmark Performance (1-year) Inception Date
30D AVG Daily Turnover 19.4k Pri. Exchange LeverageBeta to MSCI World Index 0.77 Traded Currency Index PE1YR Tracking Error (NAV) 0.05% Traded Lots Index PB
Fund Data Fund Allocation (Geographical and Sector)
Fund ManagerTotal Annual Fees (%) 0.82%Replication strategyPrice (USD)NAV (USD)Premium/ (discount) to NAVAUM (USD million)Net inflows for the month 23.24Average PE N.A.Average PB N.A.Dividend Yield N.A.Dividend Frequency None
Top 10 Holdings (%)
LME ZINC FUTURE Jan19 18.1LME PRI ALUM FUTR Oct18 17.7LME COPPER FUTURE Feb19 17.1B 0 06/07/18 16.3B 0 05/03/18 14.5B 0 07/05/18 7.6B 0 03/01/18 5.9Premier U.S. Government Money 2.6PowerShares Treasury Collatera 2.2
Source: Bloomberg Finance L.P., DBS Bank
PowerShares DB Base Metals Fun (Global)
Commodity Commodity
05/01/2007NYSE Arca 0
1. "The ETFs specifically mentioned herein may not be recognised, authorised or otherwise registered in Singapore for retail distribution. This research is intended for
general circulation only and its contents do not take into the specific investment objectives, financial situation or particular needs of any particular person. Before
deciding to purchase any ETF, an investor should seek advice from a financial adviser regarding the suitability of the investment product, taking into account his specific
investment objectives, financial situation and particular needs.”
2. “DBS, in publishing this research on ETFs, and DBSV in circulating the research, are not and should not be taken or considered as having made an offer,
recommendation or solicitation to buy or sell the ETFs or to enter into a transaction or to participate in any particular trading or investment strategy. Any reference to any
specific company, financial product or asset class in whatever way is used for illustrative purposes only and does not constitute a recommendation on the same.”
0.20%
Derivative
PowerShares DB Base Metals Fund is an exchange-traded fundincorporated in the USA. The Fund's objective is to track the DBIQOptimum Yield Industrial Metals Index Excess Return.
Notes to risk profile:-1. EIP or SIP (for Singapore-based investors) refers to the product being classified as Excluded or Specified Investment Product. SIPs havestructures, features and risks that may be more complex and require more knowledge to understand. Retail investors are required to be provided withenhanced safeguards, including an assessment of these investors’ investment knowledge or experience.
2. Leveraged and inverse ETFs pursue daily leveraged investment objectives which means they are riskier than alternatives which do not useleverage. They seek daily goals and should not be expected to track the underlying index over periods longer than one day. They are not suitable forall investors and should be utilized only by investors who understand leverage risk and who actively manage their investments.3. ETF / ETN type: Both are designed to provide investors access to the returns of various market benchmarks. ETNs are structured products thatare issued as senior debt notes, while ETFs represent a stake in an underlying asset.
1 N.A.USD N.A.
363.32
26-Feb-18
PowerShares ETFs/USA
19.3719.33
47.8
0 20 40 60 80 100
U.S.
47.80.0
0 20 40 60 80 100
GovernmentMortgage Securities
0
1000
2000
3000
4000
15
16
17
18
19
20
27/02/2017 27/04/2017 27/06/2017 27/08/2017 27/10/2017 27/12/2017NAV PowerShares DB Base Metals Fun underlying DB Commodity IDXDBCMYEIM rebase
Volume traded (R, 000s)
Page 11
Page 5
Flash Note
DBS Bank recommendations are based an Absolute Total Return* Rating system, defined as follows:
STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame)
BUY (>15% total return over the next 12 months for small caps, >10% for large caps)
HOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps)
FULLY VALUED (negative total return i.e. > -10% over the next 12 months)
SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)
Share price appreciation + dividends
Completed Date: 27 Feb 2018 10:27:53 Dissemination Date: 27 Feb 2018 14:56:39
Sources for all charts and tables are DBS Bank unless otherwise specified.
GENERAL DISCLOSURE/DISCLAIMER
This report is prepared by DBS Bank Ltd. This report is solely intended for the clients of DBS Bank Ltd, its respective connected and associated
corporations and affiliates only and no part of this document may be (i) copied, photocopied or duplicated in any form or by any means or (ii)
redistributed without the prior written consent of DBS Bank Ltd.
The research set out in this report is based on information obtained from sources believed to be reliable, but we (which collectively refers to DBS
Bank Ltd, its respective connected and associated corporations, affiliates and their respective directors, officers, employees and agents (collectively,
the “DBS Group”) have not conducted due diligence on any of the companies, verified any information or sources or taken into account any other
factors which we may consider to be relevant or appropriate in preparing the research. Accordingly, we do not make any representation or
warranty as to the accuracy, completeness or correctness of the research set out in this report. Opinions expressed are subject to change without
notice. This research is prepared for general circulation. Any recommendation contained in this document does not have regard to the specific
investment objectives, financial situation and the particular needs of any specific addressee. This document is for the information of addressees
only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate independent legal or financial
advice. The DBS Group accepts no liability whatsoever for any direct, indirect and/or consequential loss (including any claims for loss of profit)
arising from any use of and/or reliance upon this document and/or further communication given in relation to this document. This document is not
to be construed as an offer or a solicitation of an offer to buy or sell any securities. The DBS Group, along with its affiliates and/or persons
associated with any of them may from time to time have interests in the securities mentioned in this document. The DBS Group, may have
positions in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment banking and
other banking services for these companies.
Any valuations, opinions, estimates, forecasts, ratings or risk assessments herein constitutes a judgment as of the date of this report, and there can
be no assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments.
The information in this document is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed, it may
not contain all material information concerning the company (or companies) referred to in this report and the DBS Group is under no obligation to
update the information in this report.
This publication has not been reviewed or authorized by any regulatory authority in Singapore, Hong Kong or elsewhere. There is no planned
schedule or frequency for updating research publication relating to any issuer.
The valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report were based upon a number of estimates and
assumptions and are inherently subject to significant uncertainties and contingencies. It can be expected that one or more of the estimates on
which the valuations, opinions, estimates, forecasts, ratings or risk assessments were based will not materialize or will vary significantly from actual
results. Therefore, the inclusion of the valuations, opinions, estimates, forecasts, ratings or risk assessments described herein IS NOT TO BE RELIED
UPON as a representation and/or warranty by the DBS Group (and/or any persons associated with the aforesaid entities), that:
(a) such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, and
(b) there is any assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk
assessments stated therein.
Please contact the primary analyst for valuation methodologies and assumptions associated with the covered companies or price targets.
Page 12
Page 6
Flash Note
Any assumptions made in this report that refers to commodities, are for the purposes of making forecasts for the company (or companies)
mentioned herein. They are not to be construed as recommendations to trade in the physical commodity or in the futures contract relating to the
commodity referred to in this report.
DBSVUSA, a US-registered broker-dealer, does not have its own investment banking or research department, has not participated in any public
offering of securities as a manager or co-manager or in any other investment banking transaction in the past twelve months and does not engage
in market-making.
ANALYST CERTIFICATION
The research analyst(s) primarily responsible for the content of this research report, in part or in whole, certifies that the views about the
companies and their securities expressed in this report accurately reflect his/her personal views. The analyst(s) also certifies that no part of his/her
compensation was, is, or will be, directly or indirectly, related to specific recommendations or views expressed in the report. The research analyst (s)
primarily responsible for the content of this research report, in part or in whole, certifies that he or his associate1 does not serve as an officer of the
issuer or the new listing applicant (which includes in the case of a real estate investment trust, an officer of the management company of the real
estate investment trust; and in the case of any other entity, an officer or its equivalent counterparty of the entity who is responsible for the
management of the issuer or the new listing applicant) and the research analyst(s) primarily responsible for the content of this research report or
his associate does not have financial interests2 in relation to an issuer or a new listing applicant that the analyst reviews. DBS Group has
procedures in place to eliminate, avoid and manage any potential conflicts of interests that may arise in connection with the production of
research reports. The research analyst(s) responsible for this report operates as part of a separate and independent team to the investment
banking function of the DBS Group and procedures are in place to ensure that confidential information held by either the research or investment
banking function is handled appropriately. There is no direct link of DBS Group's compensation to any specific investment banking function of the
DBS Group.
COMPANY-SPECIFIC / REGULATORY DISCLOSURES
1. DBS Bank Ltd, DBS HK, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), DBSV HK or their subsidiaries and/or other affiliates have
proprietary positions in SPDR S&P Metals and Mining ETF, recommended in this report as of 26 Feb 2018.
2. Neither DBS Bank Ltd, DBS HK nor DBSV HK market makes in equity securities of the issuer(s) or company(ies) mentioned in this Research
Report.
Compensation for investment banking services:
3. DBS Bank Ltd, DBS HK, DBSVS, DBSV HK, their subsidiaries and/or other affiliates of DBSVUSA have received compensation, within the past
12 months for investment banking services from PT Timah as of 31 Jan 2018.
4. DBS Bank Ltd, DBS HK, DBSVS, their subsidiaries and/or other affiliates of DBSVUSA have managed or co-managed a public offering of
securities for PT Timah in the past 12 months, as of 31 Jan 2018.
5. DBSVUSA does not have its own investment banking or research department, nor has it participated in any public offering of securities as a
manager or co-manager or in any other investment banking transaction in the past twelve months. Any US persons wishing to obtain further
information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this document
should contact DBSVUSA exclusively.
Disclosure of previous investment recommendation produced:
6. DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates may have published other
investment recommendations in respect of the same securities / instruments recommended in this research report during the preceding 12
months. Please contact the primary analyst listed in the first page of this report to view previous investment recommendations published by
DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates in the preceding 12 months.
RESTRICTIONS ON DISTRIBUTION
1 An associate is defined as (i) the spouse, or any minor child (natural or adopted) or minor step-child, of the analyst; (ii) the trustee of a trust of which the analyst, his spouse, minor child (natural or adopted) or minor step-child, is a beneficiary or discretionary object; or (iii) another person accustomed or obliged to act in accordance with the directions or instructions of the analyst.
2 Financial interest is defined as interests that are commonly known financial interest, such as investment in the securities in respect of an issuer or a new listing applicant, or financial accommodation arrangement between the issuer or the new listing applicant and the firm or analysis. This term does not include commercial lending conducted at arm's length, or investments in any collective investment scheme other than an issuer or new listing applicant notwithstanding the fact that the scheme has investments in securities in respect of an issuer or a new listing applicant.
Page 13
Page 7
Flash Note
General This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or
located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be
contrary to law or regulation.
Australia This report is being distributed in Australia by DBS Bank Ltd. (“DBS”) or DBS Vickers Securities (Singapore) Pte Ltd
(“DBSVS”). DBS holds Australian Financial Services Licence no. 475946.
DBSVS is exempted from the requirement to hold an Australian Financial Services Licence under the Corporation Act 2001
(“CA”) in respect of financial services provided to the recipients. DBSVS is regulated by the Monetary Authority of Singapore
under the laws of Singapore, which differ from Australian laws.
Distribution of this report is intended only for “wholesale investors” within the meaning of the CA.
Hong Kong This report has been prepared by a person(s) who is not licensed by the Hong Kong Securities and Futures Commission to
carry on the regulated activity of advising on securities in Hong Kong pursuant to the Securities and Futures Ordinance
(Chapter 571 of the Laws of Hong Kong). This report is being distributed in Hong Kong and is attributable to DBS Vickers
Hong Kong Limited, a licensed corporation licensed by the Hong Kong Securities and Futures Commission to carry on the
regulated activity of advising on securities pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of
Hong Kong).
For any query regarding the materials herein, please contact Paul Yong (CE. No. ASE988) at [email protected].
Indonesia This report is being distributed in Indonesia by PT DBS Vickers Sekuritas Indonesia.
Malaysia This report is distributed in Malaysia by AllianceDBS Research Sdn Bhd ("ADBSR"). Recipients of this report, received from
ADBSR are to contact the undersigned at 603-2604 3333 in respect of any matters arising from or in connection with this
report. In addition to the General Disclosure/Disclaimer found at the preceding page, recipients of this report are advised
that ADBSR (the preparer of this report), its holding company Alliance Investment Bank Berhad, their respective connected
and associated corporations, affiliates, their directors, officers, employees, agents and parties related or associated with any
of them may have positions in, and may effect transactions in the securities mentioned herein and may also perform or seek
to perform broking, investment banking/corporate advisory and other services for the subject companies. They may also
have received compensation and/or seek to obtain compensation for broking, investment banking/corporate advisory and
other services from the subject companies.
Wong Ming Tek, Executive Director, ADBSR
Singapore This report is distributed in Singapore by DBS Bank Ltd (Company Regn. No. 196800306E) or DBSVS (Company Regn No.
198600294G), both of which are Exempt Financial Advisers as defined in the Financial Advisers Act and regulated by the
Monetary Authority of Singapore. DBS Bank Ltd and/or DBSVS, may distribute reports produced by its respective foreign
entities, affiliates or other foreign research houses pursuant to an arrangement under Regulation 32C of the Financial
Advisers Regulations. Where the report is distributed in Singapore to a person who is not an Accredited Investor, Expert
Investor or an Institutional Investor, DBS Bank Ltd accepts legal responsibility for the contents of the report to such persons
only to the extent required by law. Singapore recipients should contact DBS Bank Ltd at 6327 2288 for matters arising from,
or in connection with the report.
Thailand This report is being distributed in Thailand by DBS Vickers Securities (Thailand) Co Ltd.
United
Kingdom
This report is produced by DBS Bank Ltd which is regulated by the Monetary Authority of Singapore.
This report is disseminated in the United Kingdom by DBS Vickers Securities (UK) Ltd, ("DBSVUK"). DBSVUK is authorised
and regulated by the Financial Conduct Authority in the United Kingdom.
In respect of the United Kingdom, this report is solely intended for the clients of DBSVUK, its respective connected and
associated corporations and affiliates only and no part of this document may be (i) copied, photocopied or duplicated in any
form or by any means or (ii) redistributed without the prior written consent of DBSVUK. This communication is directed at
persons having professional experience in matters relating to investments. Any investment activity following from this
communication will only be engaged in with such persons. Persons who do not have professional experience in matters
relating to investments should not rely on this communication.
Page 14
Page 8
Flash Note
Dubai
International
Financial
Centre
This research report is being distributed by DBS Bank Ltd., (DIFC Branch) having its office at PO Box 506538, 3rd Floor,
Building 3, East Wing, Gate Precinct, Dubai International Financial Centre (DIFC), Dubai, United Arab Emirates. DBS Bank
Ltd., (DIFC Branch) is regulated by The Dubai Financial Services Authority. This research report is intended only for
professional clients (as defined in the DFSA rulebook) and no other person may act upon it.
United Arab
Emirates
This report is provided by DBS Bank Ltd (Company Regn. No. 196800306E) which is an Exempt Financial Adviser as defined
in the Financial Advisers Act and regulated by the Monetary Authority of Singapore. This report is for information purposes
only and should not be relied upon or acted on by the recipient or considered as a solicitation or inducement to buy or sell
any financial product. It does not constitute a personal recommendation or take into account the particular investment
objectives, financial situation, or needs of individual clients. You should contact your relationship manager or investment
adviser if you need advice on the merits of buying, selling or holding a particular investment. You should note that the
information in this report may be out of date and it is not represented or warranted to be accurate, timely or complete. This
report or any portion thereof may not be reprinted, sold or redistributed without our written consent.
United States This report was prepared by DBS Bank Ltd. DBSVUSA did not participate in its preparation. The research analyst(s) named
on this report are not registered as research analysts with FINRA and are not associated persons of DBSVUSA. The research
analyst(s) are not subject to FINRA Rule 2241 restrictions on analyst compensation, communications with a subject company,
public appearances and trading securities held by a research analyst. This report is being distributed in the United States by
DBSVUSA, which accepts responsibility for its contents. This report may only be distributed to Major U.S. Institutional
Investors (as defined in SEC Rule 15a-6) and to such other institutional investors and qualified persons as DBSVUSA may
authorize. Any U.S. person receiving this report who wishes to effect transactions in any securities referred to herein should
contact DBSVUSA directly and not its affiliate.
Other
jurisdictions
In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is intended only for qualified,
professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions.
DBS Regional Research Offices
HONG KONG DBS Vickers (Hong Kong) Ltd Contact: Paul Yong 18th Floor Man Yee Building 68 Des Voeux Road Central Central, Hong Kong Tel: 65 6878 8888 Fax: 65 65353 418 e-mail: [email protected] Participant of the Stock Exchange of Hong Kong
MALAYSIA AllianceDBS Research Sdn Bhd Contact: Wong Ming Tek (128540 U) 19th Floor, Menara Multi-Purpose, Capital Square, 8 Jalan Munshi Abdullah 50100 Kuala Lumpur, Malaysia. Tel.: 603 2604 3333 Fax: 603 2604 3921 e-mail: [email protected]
SINGAPORE DBS Bank Ltd Contact: Janice Chua 12 Marina Boulevard, Marina Bay Financial Centre Tower 3 Singapore 018982 Tel: 65 6878 8888 Fax: 65 65353 418 e-mail: [email protected] Company Regn. No. 196800306E
INDONESIA PT DBS Vickers Sekuritas (Indonesia) Contact: Maynard Priajaya Arif DBS Bank Tower Ciputra World 1, 32/F Jl. Prof. Dr. Satrio Kav. 3-5 Jakarta 12940, Indonesia Tel: 62 21 3003 4900 Fax: 6221 3003 4943 e-mail: [email protected]
THAILAND DBS Vickers Securities (Thailand) Co Ltd Contact: Chanpen Sirithanarattanakul 989 Siam Piwat Tower Building, 9th, 14th-15th Floor Rama 1 Road, Pathumwan, Bangkok Thailand 10330 Tel. 66 2 857 7831 Fax: 66 2 658 1269 e-mail: [email protected] Company Regn. No 0105539127012 Securities and Exchange Commission, Thailand
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