DBS Group Research Model Portfolio - Balanced
Your investment goal is a balance between capital growth and income. You can tolerate some fluctuations in the value of your stock investment in anticipation of a higher return. The investment horizon is up to 12 months.
We start the Balanced portfolio with 6 stocks - Frasers Centrepoint Limited, AREIT, Venture Corp, SIA Engineering, Mapletree Commercial Trust and ARA Asset Management. The higher number of stocks compared to the Growth and Conservative portfolios reflects the opportunities that have emerged with the stock market decline in recent months in the current uncertain macro economic environment.These stocks offer either higher dividend payout, potential earnings catalyst or both.
FRASERS CENTERPOINT LIMITED
- Higher recurring earnings base at close to 70% of topline offer good earnings stability.
- Potential asset sales to listed REITs to be positive catalyst.
Company Guide:
ASCENDAS REIT
- High yields of 7.0% close to -1SD level.
- Strongest earnings growth amongst the large cap REITs.
Company Guide:
VENTURE CORP
- Attractive at 13x 1-year forward PER and 6.2% yield.
- Big beneficiary of strong USD as 99% of sales in USD to US and Europe while benefitting at the same time from weak Ringgit as 60% of manufacturing cost is based in Malaysia.
Company Guide:
SIA ENGINEERING
- Worst could be over on the earnings front.
- Possibility of special dividends around the corner. Better entry point now.
Company Guide:
MAPLETREE COMMERCIAL TRUST
- One of the strongest DPU growth amongst the commercial REITS.
- Yields of 6.5% is attractive.
Company Guide:
ARA ASSET MANAGEMENT
- Attractive valuations and yield of c.4% to 5%.
- ARA has S$150m war chest, and is well positioned to capture opportunities that may arise in 2016.
Company Guide:
Singapore Research Team
DBS Vickers
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http://www.dbsvickers.com/
2016-02-11
