Llama Investment Styles - What Unit Trusts to buy now? Part I
*This article is dated 24 Feb 2019.
I would like to share on how you can generate trade ideas using Yahoo! Finance. This is the ETF page of Yahoo! - Link here.
It is usable because ETFs are rather similar to Unit Trusts. They either track a region's equity, or a region's bonds.
The important thing is the part highlighted in yellow in the screenshot above.
The 52-week range of various ETF prices. Closer to the left will mean a potential cheap buy; Closer to the right means that price is now 52-wk high.I have looked at those close to 52-week low, and has gathered below categories of Unit Trusts to invest in.
*Other than Yahoo!, I have looked at FSM platform's Worst performers too.
1. China Equities
For China Equities, there are generally 2 kinds of Equities Fund as I have observed. Bulk for Unit trusts available has stakes in High Growth / Volatile stocks like Alibaba & Tencent.
The other kind will be focused on China domestic firms that are state-owned.
My style is to go for the latter through - JPM China A-Share Opportunities A fund. It more or less tracks CSI 300 - China and s not susceptible to volatility of the Tech stocks.
Expense ratio stands at around a little higher than 1.5%.
P/E ratio : 13.35
Price to Book Ratio : 1.7016
Price to Sales Ratio : 1.2682
China equities valuation was cheap. Really cheap. It went into an uptrend since PBOC (China Central Bank) loosened credit conditions and injected fiscal expenditures into the economy.
Possible investment? Too high a risk for Llama Portfolio. If US-China trade talks play out well, it can be a good addition to your portfolio ;)
Looking at a higher level, China is one of the country still offering GDP growth. It was said that its 6.6% GDP growth was lowest among the last 10 or 20 years. Well, its still growth.
2017 GDP growth is 6.8%.
2. Emerging Markets Equities
Another sector badly hit in 2018. Political unrests, possible sanctions, all causes of its undervaluation.
Access this sector through:
1. SCHRODER GLOBAL EMERGING MARKET OPPORTUNITIES ACC SGD
2. AVIVA INVESTORS - EMERGING MARKETS EQUITY SMALL CAP A USD
Let's take a look at Global Emerging Market Opportunities first.
It's right now priced at 1.035 SGD. 1 year low at 0.94, 1 year high at 1.16 respectively.
Quarterly dividend at 0.01 cents gives an annualized yield of 3.86%.
Expense ratio stands at 1.68%.
|Source: Fund Factsheet Dec 2018|
This seems to be the one if you are looking for growth.
Aviva - Emerging Markets Equity Small Cap
This caught my eye as it has simply fallen alot. in 2018, it has fallen 22% in NAV price.
It was 10.7961 on 2 Jan 2019. Its now priced at 11.6573, giving a YTD growth of good 8%.
52 week range (USD) : 10.72 - 14.76
Well, seems to be cheap isn't it? Not exactly as Expense ratio stands at ~2%.
|Source: Morningstar - Top holdings of Aviva Investors - Emerging Markets Small cap Fund|
I would suggest Schroder Asian Growth Fund if you are looking for a core addition. Or the latter fund mentioned - Schroder Global Emerging Market Opportunities.
Why? Because of lower expense ratios, good dividend yields, and focus on good-size growth stocks.
3. Turkey Equities
You can only access via this unit trust - HGIF - Turkey Equity Fund.
Let's check out Turkey's equity ratios together - Istanbul 100 Index:
P/E ratio: 6.97
Price to Book Ratio : 1.0381
Price to Sales Ratio : 0.7094
Looking at 5-year chart below, its not exactly cheap at the moment.
52 week range: 84,654.50 -119,245.30
A better indicator of where the Turkey Equity Fund stand will be to look at iShares Turkey ETF.
Here you go:
|Source: 10 year chart Turkey ETF|
It is said that Turkey is heading into a reccesion. It reported 7+% growth in GDP for first half of 2018. Growth is likely to be bad in the near future, as Lira has weakened against USD significantly, and GDP readings are in USD.
I am waiting for a dip in Turkish equities, before getting into the game again.
You can read the previous post here on why I decided to jump back into LionGlobal Thailand Fund.
Stayed Tune for Part II!