Finexis Asset Management

Last Thursday, markets went from very green to very red. In the blink of an eye, the S&P 500 fell 2.80%, the NASDAQ fell 4.10%, and the Russell 2000 fell 4.03% intraday. This left many scratching their heads. What exactly happened? So, markets are down for three reasons: Initial jobless claims came in higher than expected: 249K vs. 236K. ISM manufacturing came in at 46.8 (which means the U.S. business conditions are generally declining), the fourth consecutive month of contraction. Companies like Hershey's and home-furnishing company Wayfair mentioned in their earnings that consumers are in a bad spot. Bad news was good news seven months ago because any bad news of slowing down was good for inflation coming down. A soft landing is still not out of reach, but markets are now focusing on the broader fundamental picture rather than a possible rally that many expected from the Fed's signal of lower rates. Last night, bad news was just bad news as markets focused on the weaker economic data. As markets continue to assess the strength of the U.S. economy this earnings season amidst upcoming earnings, the Fed's interest decision in September, and the U.S. elections in November, markets can play out in very different ways. Investors need to position themselves and be prepared for different scenarios to face any near-term market volatility with confidence.

GenAI is at the forefront of the next revolution in technology. The capabilities brought about by GenAI are transformative. As leaders and business owners, thinking about how technology bends the curve on innovation within the organization can improve the way businesses operate, from processes to the creation and delivery of products. In an exclusive interview with Richard Koh, CTO of Microsoft ASEAN Global Partner Solutions, we lean into his insights on how people and businesses can approach GenAI.

Catastrophe bonds (or cat bonds) are generally lesser-known to the public compared to traditional stocks and bonds. However, unlike these conventional investments, cat bonds are uncorrelated with financial market events. Their risk and performance are tied to large-scale natural disasters, such as hurricanes, making them largely immune to market sell-offs (such as during the 2022 interest rate scares that saw both stocks and bonds drop by double digits!). As such having cat bonds as an alternative investment in an investor's portfolio offers true diversification. At our recent event, "Build Your Income Oasis in the New Normal," Timothy Yip, Executive Director at HSZ Group ILS Advisers and a leader in the development of the ILS sector, explains what cat bonds are and why investors should pay more attention to this niche and specialized asset class.

Asia high yield (AHY) bonds have returned 10.1% in the first half of 2024, outperforming other bond categories. The default risks for AHY bonds have also remained low, supported by solid corporate fundamentals across the region. This has fuelled demand from investors seeking both income and price gains in bonds. Throwback to our event "Build Your Income Oasis in the New Normal." We hear firsthand from Dhiraj Bajaj, Head of Fixed Income Asia at Lombard Odier Investment Managers , to understand why investors should pay more attention to Asia and what a typical day is like for him running an award-winning Asia fixed income strategy.

Income has been one of the most discussed topics among investors this year. Just in 2022, interest rates were close to 0%. Fast forward to today, and they are hovering around 5%, a result of the Fed's actions to combat high inflation.   This shift has ushered in a new era of income investing, offering investors a plethora of choices.   Our recent event, "Build Your Income Oasis in the New Normal," held at Marriott Tang Plaza Hotel, brought together two of our partners to explore how combining different income solutions can help investors achieve sustainable and resilient income.   Dhiraj Bajaj, Head of Fixed Income Asia at Lombard Odier Investment Managers, and Timothy Yip, Executive Director at HSZ Group’s ILS Advisers, shared their expert perspectives and strategies in Asia high-yield bonds and insurance-linked securities, both integral to FAM's income strategies in today's market environment.   Alvin Goh, our CIO at FAM, contextualized these insights against the backdrop of today's BANI (Brittle, Anxious, Non-Linear, and Incomprehensible) environment. He underscored the importance of True diversification in achieving sustainable income and emphasized the 3Ds - Difference, Diversification, and Due Diligence - as essential components of True Diversification.   Following this, our guests had the opportunity to engage with the speakers in a dynamic Q&A session expertly moderated by Lixing Lim.   Today, with the many income choices available, it is crucial for investors to assess the suitability of each instrument in their portfolio and how it impacts their income journey in the years ahead.   We are proud to have partnered with Lombard Odier IM and HSZ Group, as part of our ongoing efforts to foster meaningful connections and cultivate long-term relationships within our community.

Gold's Recent Surge: An Investment Opportunity? Gold prices have experienced a remarkable surge, climbing approximately 12% over the past three months and reaching $2,300 per ounce in June 2024. This rally is driven by heightened geopolitical tensions, renewed inflation concerns, and a weakening US dollar. Historically, gold has been a go-to asset during periods of uncertainty. It serves as a hedge against inflation, protection against currency depreciation, and a safe-haven investment during economic turbulence. Gold’s cultural significance, symbolizing wealth and stability, further enhances its enduring appeal. Notably, central banks, including the People’s Bank of China, have significantly increased their gold reserves, adding 12 tonnes in February alone. However, it is important to recognize that gold's price can be highly volatile. For instance, gold reached a peak of approximately $1,920 per ounce in 2011, then declined to about $1,050 in 2015. It rallied again, surpassing $2,000 in 2020, and has fluctuated since, climbing once more in June 2024. Navigating such volatility requires patience and a long-term perspective. While gold can be a valuable component of a diversified portfolio, investors should exercise caution and carefully consider their investment approach before participating in its glittering rally.

At our recent event, we were privileged to have Mr. Richard Koh, CTO of ASEAN Global Partner Solutions from Microsoft, deliver an insightful presentation on the transformative power of Generative AI. The event, held at 33 Club Singapore, brought together a dynamic group of C-suite executives, business owners, and entrepreneurs.   Generative AI has been reshaping industries and business models, much like in the early days of the internet. By 2027, the global AI market value is projected to reach $267 billion, and by 2030, it is expected to contribute $15.7 trillion to the global economy.   During his sharing, Mr. Richard Koh emphasized how Generative AI is a game-changer for businesses and future generations on this new frontier. One key focus was on how Generative AI can provide people and leaders with more time for critical thinking. By automating routine tasks and processes, AI frees up valuable time that can be directed to high-value activities such as strategic decision-making and creative thinking to drive growth and competitive advantage.   As AI becomes more integrated into every facet of work, understanding and leveraging AI technology will become even more crucial. Businesses and individuals who grasp how humans and AI complement and enhance each other will be better equipped to navigate and stay ahead in today’s rapidly evolving landscape.   We are proud to have sponsored this exclusive event in collaboration with CEO ASIA, as part of our ongoing efforts to foster meaningful connections and cultivate long-term relationships within our community.    We would like to extend our heartfelt thanks to Mr. Richard Koh once again for his insightful presentation, Microsoft for their support, and CEO ASIA for their partnership!

In the current landscape of higher interest rates, cash has gained a newfound appeal. However, after a robust 2023, is it still "king" going forward? While cash might seem like an attractive investment option and a safe haven amid current market volatility, holding too much of it could lead to many missed opportunities and returns. In this short video, we share with you 5 reason why excess cash could be costly and how to navigate this situation.

Values are like lighthouses; they are signals that give us direction, meaning, and purpose. They are what drive our thoughts, words, and actions.   Starting the year, we asked ourselves what is true wealth?   Most of us immediately think of an overflowing abundance of money. But through our years of interaction and journey with affluent individuals and families, we recognize that for many well-to-do individuals and families, wealth is often beyond-the-dollars.   It is the experiences, connections, and freedom to live life on one's own terms.   With this belief, we've set sail on the ambitious goal of building a community - a community that brings together a network of individuals, families, and businesses, each with their own unique story of success. One that fosters meaningful connections and long-term relationships to the personal and business growth of our members.   We're excited to share that since the beginning of 2024, we've had the support of over 200 unique individuals and families (ranging from business owners and industry experts to entrepreneurs) over our events. Our latest successful event focused on providing valuable insights into top US and UK universities for parents with a desire to gift their children an education for a lifetime.   We are grateful for their support, and more importantly, for the dedicated team behind the planning and execution of these events.   As we move into the new quarter, we remain committed to fostering a vibrant and supportive community. We have exciting plans ahead, including more events, networking opportunities, and resources tailored to the diverse needs of our members.   Together, we forge a journey of wealth and freedom, guided by our shared value of going beyond-the-dollar.

“As parents, we did what we had to do. Nothing is more satisfying than seeing your children excel. And excellence is best achieved through a quality education. My children will inherit little from me in terms of material wealth. I have given them the best gift of life in the form of education, which, if used wisely, will allow them to enjoy luxuries in life.” - Read from an interview lately. #throwback It was a privilege for FAM (finexis asset management) to host an event with almost 90 parents & a joy to have Crimson educating them on the ways to “boost their chances in top universities” such as Stanford, Oxford, Cambridge & more Ivy leagues school. Indeed there are 3 essential parts to this puzzle: (1) children’s academic & extracurricular performance, (2) finances for overseas studies & accommodation, (3) a specialist to help to curate the children’s portfolio to achieve optimal end results Having Daniel & Evelyn sharing their experiences as former admission officer & strategist certainly gave clarity to our parents on the possible options for their children, while FAM’s CEO Faith short sharing as a fellow parent regarding her personal experience (her kids are schooled in US & UK) gave really useful “food for thoughts” to consider what’s really the best for their kids & parents themselves. Going beyond just the dollars is something that FAM pride ourselves. Building a community through meaningful connections & collaborating with good partners is what we seek for long term relationship to bring value to our clients & community. Good job Debra C. for the collab & Suchern Ting for being such a great emcee for the afternoon! BIG THANKS also to Kai Xin Lim for availing Singlife’s premise for this event & making sure everything was arranged nicely!!