Director - Research, Consulting and Advisory, BondAdviser

Nicholas Yaxley

Director - Research, Consulting and Advisory

Australian bonds & fixed income research

BondAdviser

BondAdviser is the central reference point for intelligent information on Australian fixed income markets. We help you make informed decisions by providing unbiased research, transparent pricing data, analytics, portfolio tools and education.

BondAdviser has the broadest coverage of retail-accessible ASX-listed and over-the-counter Australian bonds and fixed income securities. We make it easy for you to review and compare investments before you place an order with your broker or dealer.

Credit

Back in February 2016, trading margins of ASX-listed hybrid securities widened significantly. As a result, there were a number of attractive investment opportunities and following a relatively stable reporting season and shift in sentiment, margins began to retrace. While on the surface it appears margins are still tracking well relative to February, a more suitable performance measure would be to calculate the cumulative change to see if investors have recovered the losses endured at start of…

Back in February 2016, trading margins of ASX-listed hybrid securities widened significantly. As a result, there were a number of attractive investment opportunities and following a relatively stable reporting season and shift in sentiment, margins began to retrace. While on the surface it appears margins are still tracking well relative to February, a more suitable performance measure would be to calculate the cumulative change to see if investors have recovered the losses endured at start of…

Hybrids: Have We Recovered Since February?

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Thematic (Sector/Industry)

<ul><li>From a demand perspective, Asia’s population is growing as is longevity. On the supply side, Asia’s number of doctors, nurses, hospitals and medical equipment diverge across the region, and still trail the per capita averages of the 34 OECD member countries. </li><li>For a shorter-term perspective, over the past five weeks, four Healthcare stocks (Cordlife Group, iX Biopharma, UG Healthcare Corporation &amp; Health Management International) have released Annual Reports whilst a secondary listing (Techcomp Holdings) has released an Interim Report.</li><li>Within these reports, there are examples of how the Healthcare Sector is adapting to Asia Pacific demographics, maintaining an ongoing focus on Research &amp; Development, monitoring pharmaceutical &amp; food regulation trends, collaborating with communities to build business channels, expansion of production lines and pursuing value chain management in manufacturing and distribution. </li></ul>

From a demand perspective, Asia’s population is growing as is longevity. On the supply side, Asia’s number of doctors, nurses, hospitals and medical equipment diverge across the region, and still trail the per capita averages of the 34 OECD member countries. For a shorter-term perspective, over the past five weeks, four Healthcare stocks (Cordlife Group, iX Biopharma, UG Healthcare Corporation &amp; Health Management International) have released Annual Reports whilst a secondary listing (Techcomp Holdings) has released an Interim Report.Within these reports, there are examples of how the Healthcare Sector is adapting to Asia Pacific demographics, maintaining an ongoing focus on Research &amp; Development, monitoring pharmaceutical &amp; food regulation trends, collaborating with communities to build business channels, expansion of production lines and pursuing value chain management in manufacturing and distribution. 

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

Equity Bottom-Up

We maintain our fair value estimate for Ramsay Health Care at AUD 87 per share. Shares in the hospital operator are trading 18% below our intrinsic assessment, and have been adversely impacted by the recent cautious trading update from Healthscope and the release of reform recommendations to the Turnbull government aimed at easing pressure on private health insurance premiums.The disparity in cost of comparable prostheses and medical devices between the public and private systems is significant. However, based on anecdotal evidence, we believe the key beneficiaries have to date been the medical device manufacturers with the private hospital operators largely charging the private insurers at cost plus 1% to 2%. Put simply, we believe the cuts will mostly impact the manufacturers rather than the service providers such as Ramsay.Analyst: Chris Kallos, CFA

We maintain our fair value estimate for Ramsay Health Care at AUD 87 per share. Shares in the hospital operator are trading 18% below our intrinsic assessment, and have been adversely impacted by the recent cautious trading update from Healthscope and the release of reform recommendations to the Turnbull government aimed at easing pressure on private health insurance premiums.The disparity in cost of comparable prostheses and medical devices between the public and private systems is significant. However, based on anecdotal evidence, we believe the key beneficiaries have to date been the medical device manufacturers with the private hospital operators largely charging the private insurers at cost plus 1% to 2%. Put simply, we believe the cuts will mostly impact the manufacturers rather than the service providers such as Ramsay.Analyst: Chris Kallos, CFA

First Steps in Prosthesis List Reform to Impact Manufacturers; Maintaining Ramsay Health Care FVE

The BondAdviser Corporate Hybrid Handbook 2017 is designed to be a useful reference for ASX-listed corporate hybrid securities and the credit profiles of their underlying issuers. We believe there are a number of attractive investment opportunities across different corporate industries.Corporate hybrids are overshadowed in a market dominated by banks and other financial institutions. As a result, many investors fail to reap the diversification benefits that non-financial issuers offer in a balanced portfolio. While bank and other financial hybrids are often driven by macro-economic, regulatory and/or political themes and trends, corporate hybrids warrant a more case-by-case approach which promotes diversification. For this reason, corporate hybrids should not be overlooked.Given the ‘lower-for-longer’ interest rate environment, the search for yield is becoming an increasingly difficult task. While hybrids continue to be an attractive option to boost income, they are not without inherent risks.

 The BondAdviser Corporate Hybrid Handbook 2017 is designed to be a useful reference for ASX-listed corporate hybrid securities and the credit profiles of their underlying issuers. We believe there are a number of attractive investment opportunities across different corporate industries.Corporate hybrids are overshadowed in a market dominated by banks and other financial institutions. As a result, many investors fail to reap the diversification benefits that non-financial issuers offer in a balanced portfolio. While bank and other financial hybrids are often driven by macro-economic, regulatory and/or political themes and trends, corporate hybrids warrant a more case-by-case approach which promotes diversification. For this reason, corporate hybrids should not be overlooked.Given the ‘lower-for-longer’ interest rate environment, the search for yield is becoming an increasingly difficult task. While hybrids continue to be an attractive option to boost income, they are not without inherent risks. 

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Capital Markets

Fullerton Healthcare / Equity Capital Markets

Fullerton Healthcare reportedly plans to list on the SGX in the near future. The company provides both outpatient healthcare services and medical benefit management services to employers across the region. The business features relatively stable growth and profitability and low capital intensity. The main use of proceeds will be for acquisitions to enter new markets both by service line and country. We think that fair value is S$1.0 billion based on peers and is at the lower end of the bankers' DCF projections.
We will revisit this offering once the deal formally launches. This post focuses on the business, projections, valuation (in brief), management, risks, and some key investments.

Fullerton Healthcare reportedly plans to list on the SGX in the near future. The company provides both outpatient healthcare services and medical benefit management services to employers across the region. The business features relatively stable growth and profitability and low capital intensity. The main use of proceeds will be for acquisitions to enter new markets both by service line and country. We think that fair value is S$1.0 billion based on peers and is at the lower end of the bankers' DCF projections.
We will revisit this offering once the deal formally launches. This post focuses on the business, projections, valuation (in brief), management, risks, and some key investments.

Australia

Ramsay Health Care Ltd. provides health care services. The Company offers private hospital services, including, rehabilitation, psychiatric care, day, and complex surgery. Ramsay Health Care owns, operates, and manages health care facilities throughout Australia, Indonesia, and Europe.

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Ramsay Health Care (RHC AU)

Hybrids: Have We Recovered Since February?

Back in February 2016, trading margins of ASX-listed hybrid securities widened significantly. As a result, there were a number of attractive...

BondAdviser

Key Drivers of Asia's Healthcare Sector

From a demand perspective, Asia’s population is growing as is longevity. On the supply side, Asia’s number of doctors, nurses, hospitals and...

Singapore Exchange Ltd (SGX)

First Steps in Prosthesis List Reform to Impact Manufacturers; Maintaining Ramsay Health Care FVE

We maintain our fair value estimate for Ramsay Health Care at AUD 87 per share. Shares in the hospital operator are trading 18% below our intrinsic...

Morningstar, Inc.

Corporate Hybrids Handbook 2017

The BondAdviser Corporate Hybrid Handbook 2017 is designed to be a useful reference for ASX-listed corporate hybrid securities and the credit...

BondAdviser

Fullerton Healthcare: A High-Quality IPO

Fullerton Healthcare reportedly plans to list on the SGX in the near future. The company provides both outpatient healthcare services and medical...

Kemp Dolliver, CFA

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