Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Equity Capital Markets

Sakura Sogo REIT / Equity Capital Markets

<p>The <a href="https://www.smartkarma.com/entities/23566" target="_blank" data-smartkarma-citation="entities:23566:1">Sakura Sogo Reit (3473 JP)</a> IPO process is under way. Sakura Sogo REIT is, of course, the re-listing in Japan of the <a href="https://www.smartkarma.com/entities/20036" target="_blank" data-smartkarma-citation="entities:20036:1">Galileo Japan Trust (GJT AU)</a> assets after a process of liquidation of the GJT portfolio and acquisition by SSR in what is the closest thing to a SPAC that Japan has. <a href="https://www.smartkarma.com/profiles/11" target="_blank" data-smartkarma-citation="accounts:11">Crispin Francis</a> has ably discussed the background of this take-private and relisting process over the past six months and the precursor Insights are available in the stream shown at right. </p><p>The bookbuild for Sakura…</p>

The Sakura Sogo Reit (3473 JP) IPO process is under way. Sakura Sogo REIT is, of course, the re-listing in Japan of the Galileo Japan Trust (GJT AU) assets after a process of liquidation of the GJT portfolio and acquisition by SSR in what is the closest thing to a SPAC that Japan has. Crispin Francis has ably discussed the background of this take-private and relisting process over the past six months and the precursor Insights are available in the stream shown at right. The bookbuild for Sakura…

Sakura Sogo REIT IPO - Small, Old Buildings, With Little NOI Growth

Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Event-Driven

<p>Earlier this morning, GJT announced an "Update on Proposed Sale of the Japanese Property Portfolio" (link to ASX <a href="http://www.asx.com.au/asxpdf/20160808/pdf/4394shsn02pthh.pdf" target="_blank">announcement</a>).</p><div class="content-highlight"><p><strong>TSE has approval the listing of the new J-REIT, Sakura Sogo REIT. </strong></p></div><h2>Lead manager and underwriter - SMBC Nikko Securities Inc</h2><p>They are a reputable underwriter; they are #4 in the league tables for IPO issuances in Japan 2016 and #1 for all equity offers in Japan 2016 (ranked by volume; league table data from Bloomberg).</p><h2><strong>Latest timetable</strong></h2><table class="table table-striped"><tbody>
<tr>
<td><strong>Timing</strong></td>
<td><strong>Event</strong></td>
</tr>
<tr>
<td><strong>5 Aug 2016</strong></td>
<td><strong>Official Launch</strong></td>
</tr>
<tr>
<td>9 to</td>
</tr>
</tbody></table>…

Earlier this morning, GJT announced an "Update on Proposed Sale of the Japanese Property Portfolio" (link to ASX announcement).TSE has approval the listing of the new J-REIT, Sakura Sogo REIT. Lead manager and underwriter - SMBC Nikko Securities IncThey are a reputable underwriter; they are #4 in the league tables for IPO issuances in Japan 2016 and #1 for all equity offers in Japan 2016 (ranked by volume; league table data from Bloomberg).Latest timetable

Timing
Event


5 Aug 2016
Official Launch


9 to

…

Galileo Japan Trust - TSE Approval to List Has Been Received

<div>
<a href="https://www.smartkarma.com/profiles/2" target="_blank" data-smartkarma-citation="accounts:2">Raghav Kapoor</a> highlighted J-REITs in his recent <a href="https://www.smartkarma.com/insights/here-and-now-actionable-ideas-25-07-2016" target="_blank">here-and-now-actionable-ideas insight</a>.  </div><ul>
<li>Consensus expectations are calling for an increase in asset purchases, especially via ETFs and J-REITs</li>
<li>With J-REITs, consensus figures seem to call for a <strong>122% increase in purchases</strong>: from JPY90bn → JPY200bn</li>
<li>Interestingly, YTD, J-REITs have underperformed the region</li>
</ul><p>Immediately, Galileo Japan Trust (ASX:GJT) came to mind.</p><h2>A quick recap </h2><p>29 Feb 2016 - GJT <a href="http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&amp;idsId=01717132" target="_blank">announced</a> a proposed sale of its entire Japanese property…</p>


Raghav Kapoor highlighted J-REITs in his recent here-and-now-actionable-ideas insight.  
Consensus expectations are calling for an increase in asset purchases, especially via ETFs and J-REITs
With J-REITs, consensus figures seem to call for a 122% increase in purchases: from JPY90bn → JPY200bn
Interestingly, YTD, J-REITs have underperformed the region
Immediately, Galileo Japan Trust (ASX:GJT) came to mind.A quick recap 29 Feb 2016 - GJT announced a proposed sale of its entire Japanese property…

Galileo Japan Trust - Macro Environment Favors This Transaction

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

Thematic (Sector/Industry)

<p>As a consequence of increasing global risks, tougher regulatory demands, intensifying pressure on net interest margins, higher bad debts and lower than expected returns on equity we reduce earnings forecasts, fair value estimates and rebase medium- to longer-term dividend payout ratios lower to more sustainable long-term levels for three of the four wide moat-rated Australian banks: Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corporation. We cut Australia and New Zealand Banking Group's earnings forecasts and fair value estimate in March 2016 and now rebase its longer-term dividend payout ratio lower. </p><p>Our preferred banks are the big retail-focused, New South Wales-based, banks Westpac and Commonwealth Bank due to their lower risk profiles, higher ROEs, higher NIMs, lower cost/income ratios, consistently lower-loan-loss rates, less volatility in earnings, and larger exposures to the strongly performing New South Wales economy.</p><p><em>Analyst: David Ellis</em></p>

As a consequence of increasing global risks, tougher regulatory demands, intensifying pressure on net interest margins, higher bad debts and lower than expected returns on equity we reduce earnings forecasts, fair value estimates and rebase medium- to longer-term dividend payout ratios lower to more sustainable long-term levels for three of the four wide moat-rated Australian banks: Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corporation. We cut Australia and New Zealand Banking Group's earnings forecasts and fair value estimate in March 2016 and now rebase its longer-term dividend payout ratio lower. Our preferred banks are the big retail-focused, New South Wales-based, banks Westpac and Commonwealth Bank due to their lower risk profiles, higher ROEs, higher NIMs, lower cost/income ratios, consistently lower-loan-loss rates, less volatility in earnings, and larger exposures to the strongly performing New South Wales economy.Analyst: David Ellis

Challenges Mount for the Wide Moat-Rated Australian Banks

FX Strategist

Greg Gibbs

Fundamental analysis of topical themes in FX

Amplifying Global FX Capital

Amplifying Global FX Capital was founded in 2015 and is fully owned by Greg Gibbs. It is a registered company both in Australia and Colorado, USA and is a licensed in Australia to provide financial services.

We are producing a regular trading view orientated macroeconomic analysis of topical themes in global financial markets, with a particular focus on foreign exchange. We invite you to view an “executive summary” of these reports in “AmpGFX Reports” under our “Research” menu.

These reports are drawn from the analysis of Greg Gibbs and inform the capital management he undertakes on behalf of the company. The trading performance is posted periodically on our website. We aim to build our company into both a research and capital management business. We are currently in the planning phase for managing capital for wholesale customers.

Greg Gibbs has spent his working life of more than 26 years in financial markets, beginning in 1989 at the Reserve Bank of Australia, after completing a Bachelor of Economics Degree (Honours) at the Australian National University. He has been a CFA Charterholder since 2005. He has worked in Sydney, Singapore, New York and London for major global banks and presented on foreign exchange markets to major financial institutions and companies around the world, and maintained a high profile in the financial media.

Before Amplifying Global FX Capital, Greg was the Head of Asia Pacific Market Strategy at the Royal Bank of Scotland based Singapore. He now resides in Breckenridge Colorado.

Macroeconomics

<p><em>We think the case is clear for the RBA to cut rates tomorrow and are predicting this outcome.  The much lower core inflation reading, evidence of tightening bank credit conditions, some softening recently in credit growth, cooler job vacancies, a stronger AUD, some renewed doubts on China and timing of the 2 July election suggest the RBA needs to be decisive and get ahead of expectations.  Consequently we see further weakness in the AUD and continue to favour gold as we discussed last week outlining risks in China that may spill over to global asset markets and the rebounding JPY that may push the BoJ toward more easing.</em></p>

We think the case is clear for the RBA to cut rates tomorrow and are predicting this outcome.  The much lower core inflation reading, evidence of tightening bank credit conditions, some softening recently in credit growth, cooler job vacancies, a stronger AUD, some renewed doubts on China and timing of the 2 July election suggest the RBA needs to be decisive and get ahead of expectations.  Consequently we see further weakness in the AUD and continue to favour gold as we discussed last week outlining risks in China that may spill over to global asset markets and the rebounding JPY that may push the BoJ toward more easing.

Australia

Galileo Japan Trust invests in real estate including office, residential, retail/leisure, mixed use, industrial and hotel properties.

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Galileo Japan Trust (GJT AU)

Sakura Sogo REIT IPO - Small, Old Buildings, With Little NOI Growth

The Sakura Sogo Reit (3473 JP) IPO process is under way. Sakura Sogo REIT is, of course, the re-listing in Japan of the Galileo Japan Trust (GJT...

Travis Lundy

Galileo Japan Trust - TSE Approval to List Has Been Received

Earlier this morning, GJT announced an "Update on Proposed Sale of the Japanese Property Portfolio" (link to ASX announcement).TSE has approval the...

Crispin Francis

Galileo Japan Trust - Macro Environment Favors This Transaction

Raghav Kapoor highlighted J-REITs in his recent here-and-now-actionable-ideas insight. Consensus expectations are calling for an increase in...

Crispin Francis

Challenges Mount for the Wide Moat-Rated Australian Banks

As a consequence of increasing global risks, tougher regulatory demands, intensifying pressure on net interest margins, higher bad debts and lower...

Morningstar, Inc.

AmpGFX - RBA Cut the Obvious Decision

We think the case is clear for the RBA to cut rates tomorrow and are predicting this outcome. The much lower core inflation reading, evidence of...

Greg Gibbs

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