Latest news with #BlackRock-managed
Yahoo
24-04-2025
- Business
- Yahoo
Singapore's high-yield stocks gain from tariff-induced flight to safety
By Sameer Manekar (Reuters) -As reverberations from U.S. President Donald Trump's tariffs are felt across markets, investors are increasingly gravitating toward Singapore's high-yield, defensive companies, including telecom firms, pivoting away from old favourites such as banks. Singapore's benchmark index has proved resilient in the face of the back-and-forth tariff salvos, eking out a small gain for the year and faring better than regional peers as investors hunt for safe bets during the market tumult. "Singapore is a high-yield market, which is going to be interesting and defensive in these times," said Kenneth Tang, senior portfolio manager at Nikko Asset Management. "It has characteristically been a lot more defensive and yield focused, and that will work in its favour." Singapore's telecom, industrials, and utilities stocks - viewed by investors as defensive sectors during extreme volatility - have become hot favourites, attracting the most institutional money in the last two weeks. Telecommunications firm Singtel pulled in S$343.6 million ($261.6 million) in the past two weeks alone from institutional investors, more than the S$297 million it received in the first three months of the year, exchange data showed. That compares with S$259 million net institutional outflows from the three Singapore banks - DBS, OCBC, and United Overseas Bank - over the last two weeks, and combined outflow of S$2 billion this year. Financials comprise nearly half the Straits Times Index and powered the market surge in 2024. But the three big banks have underperformed the broader market this year due to worries over a slowdown in earnings growth and macroeconomic headwinds. In contrast, Singtel has gained more than 22% this year and was last near an eight-year high, while ST Engineering has advanced 54% to record highs. The tariffs have refocused investors' attention on Singapore equities - previously overlooked due to limited growth prospects - for their high capital returns, alongside the city-state's stable political environment, steady currency and deep fiscal reserves that can help it weather trade headwinds. "A lot more corporations are paying out even more yields or more dividends, and that is a perfect narrative at a time when there is a flight to safety and investors are focusing more on the certainty of income," Tang said. Foreign investor interest, as reflected by the BlackRock-managed iShares MSCI Singapore ETF, has also returned, though it remains far below where it was before Trump's April 2-tariff announcements. Singapore stocks have risen more than 14% in the past two weeks and clocked an eight-session rally, following a sharp drop in the immediate aftermath of the reciprocal tariffs announced in early April. The dividend yield of Singapore stocks was at 4.93, higher than the yield for Malaysian and Thai equities, LSEG data showed. ($1 = 1.3135 Singapore dollars)
Reuters
24-04-2025
- Business
- Reuters
Singapore's high-yield stocks gain from tariff-induced flight to safety
April 24 (Reuters) - As reverberations from U.S. President Donald Trump's tariffs are felt across markets, investors are increasingly gravitating toward Singapore's high-yield, defensive companies, including telecom firms, pivoting away from old favourites such as banks. Singapore's benchmark index has proved resilient in the face of the back-and-forth tariff salvos, eking out a small gain for the year and faring better than regional peers as investors hunt for safe bets during the market tumult. "Singapore is a high-yield market, which is going to be interesting and defensive in these times," said Kenneth Tang, senior portfolio manager at Nikko Asset Management. "It has characteristically been a lot more defensive and yield focused, and that will work in its favour." Singapore's telecom, industrials, and utilities stocks - viewed by investors as defensive sectors during extreme volatility - have become hot favourites, attracting the most institutional money, opens new tab in the last two weeks. Telecommunications firm Singtel ( opens new tab pulled in S$343.6 million ($261.6 million) in the past two weeks alone from institutional investors, more than the S$297 million it received in the first three months of the year, exchange data showed. That compares with S$259 million net institutional outflows from the three Singapore banks - DBS ( opens new tab, OCBC ( opens new tab, and United Overseas Bank ( opens new tab - over the last two weeks, and combined outflow of S$2 billion this year. Financials comprise nearly half the Straits Times Index (.STI), opens new tab and powered the market surge in 2024. But the three big banks have underperformed the broader market this year due to worries over a slowdown in earnings growth and macroeconomic headwinds. In contrast, Singtel has gained more than 22% this year and was last near an eight-year high, while ST Engineering ( opens new tab has advanced 54% to record highs. The tariffs have refocused investors' attention on Singapore equities - previously overlooked due to limited growth prospects - for their high capital returns, alongside the city-state's stable political environment, steady currency and deep fiscal reserves that can help it weather trade headwinds. "A lot more corporations are paying out even more yields or more dividends, and that is a perfect narrative at a time when there is a flight to safety and investors are focusing more on the certainty of income," Tang said. Foreign investor interest, as reflected by the BlackRock-managed iShares MSCI Singapore ETF , has also returned, though it remains far below where it was before Trump's April 2-tariff announcements. Singapore stocks have risen more than 14% in the past two weeks and clocked an eight-session rally, following a sharp drop in the immediate aftermath of the reciprocal tariffs announced in early April. The dividend yield of Singapore stocks was at 4.93, higher than the yield for Malaysian (.KLSE), opens new tab and Thai (.SETI), opens new tab equities, LSEG data showed. ($1 = 1.3135 Singapore dollars)
Yahoo
20-03-2025
- Business
- Yahoo
BlackRock's Silent $11.6T Pivot: Ditching ESG, Winning Back Republicans, and Raking in Billions
BlackRock (NYSE:BLK) is playing a high-stakes game, walking a fine line between political pressure and its massive global client base. Once Wall Street's loudest advocate for ESG, the firm has been quietly backing off after relentless attacks from Republican leaders. CEO Larry Fink has all but erased the term from his vocabulary, shifting focus to retirement security and energy investments instead. And it's workingBlackRock's recent deal to acquire ports in the Panama Canal even earned praise from former President Donald Trump. But red-state treasurers aren't convinced just yet. Over $13 billion has been pulled from BlackRock-managed funds since 2022, though that's a drop in the ocean for the firm's $11.6 trillion empire. Warning! GuruFocus has detected 4 Warning Sign with BLK. Still, BlackRock isn't taking chances. It's been on a charm offensive, hiring conservative lobbyists, running pro-energy ad campaigns, and making it clear it has no plans to abandon fossil fuels anytime soon. Fink himself reinforced that point at an energy conference in Houston, telling a packed room that oil and gas will be part of the U.S. economy for a long, long time. That's a sharp pivot from his earlier push for green investing, and while it's helping repair relations with Republican leaders, skepticism remains. BlackRock is still facing lawsuits, asset withdrawals, and continued political heat from red states looking for more than just rhetoric. For investors, the real question is whether any of this actually moves the needle. Despite the ESG backlash, BlackRock's business keeps growingit posted a record $641 billion in new client inflows last year. Its grip on the asset management industry remains firm, and its expansion into private markets is picking up steam. But with political risks still in play, BlackRock is walking a tightrope. Investors will be watching to see if its new strategy is enough to keep both Washington and Wall Street happy. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
16-02-2025
- Business
- Yahoo
Archer Aviation's Latest Capital Raise Shows the eVTOL Pioneer Is Ready for Takeoff
The race to develop electric vertical takeoff and landing (eVTOL) aircraft has undergone a dramatic consolidation since its emergence around 2010. What began as a crowded field with hundreds of competing aircraft designs has been winnowed down significantly as the technical and regulatory hurdles became apparent. However, the culling of the herd truly came down to one critical factor-capital. The immense funding requirements of developing an entirely new form of aviation, estimated in the billions of dollars per program, have proven too steep for all but the most resourceful companies. Archer Aviation (NYSE: ACHR), an American eVTOL leader, has excelled at fundraising since its inception, putting it in an enviable position as the industry as a whole steadily marches toward commercialization. Here's why Archer Aviation's latest funding round eliminates a key risk for investors and sets the stage for potential share price appreciation. Archer's latest funding round, a $301.75 million capital raise at $8.50 per share, brings total liquidity to approximately $1 billion. This strategic financing, which included significant participation from BlackRock-managed funds, substantially fortified what was already one of the strongest balance sheets among public eVTOL companies. At current quarterly burn rates, this war chest provides Archer with an approximately two-year operational runway. More significantly, this capital raise probably represents one of Archer's final dilutive offerings, eliminating a persistent overhang that has historically constrained the stock's valuation. While numerous eVTOL designs have succumbed to financial constraints or been absorbed by stronger players, Archer has demonstrated remarkable capital management through multiple economic cycles. This nearly unparalleled ability to raise funds on demand has emerged as the company's defining competitive advantage in an industry where mere entry requires billions in investment. This capital advantage has enabled Archer to maintain an aggressive path to market leadership. According to S&P Global Visible Alpha consensus data, the company is projected to become a leader in the U.S. public eVTOL market in direct aircraft revenue, reaching over $2 billion in sales by 2029. Archer's production trajectory, scaling from 33 aircraft in 2026 to 465 units by 2030 per Alpha Vision, creates a clear path to positive cash flow by perhaps 2027. By comparison, rival Joby Aviation is projected to hit just 56 units by 2030 by Alpha Vision, highlighting Archer's ambitious production ramp-up. CEO Adam Goldstein has identified defense applications as an increasingly substantial opportunity, citing mounting military interest in next-generation vertical lift capabilities. This vision recently gained powerful validation through an exclusive partnership with Anduril, one of the world's most innovative defense technology companies, to jointly develop hybrid VTOL aircraft for military applications. The partnership combines Archer's expertise in rapid VTOL development with Anduril's deep artificial intelligence and systems integration capabilities, targeting potential Department of Defense programs. Beyond defense applications, Archer has a growing order book for civilian aircraft through multiple landmark deals, such as its joint venture with Soracle Corporation in Japan. This single deal represents an order for up to 100 Midnight aircraft. Archer's preliminary fourth-quarter 2024 non-GAAP operating expenses are tracking within management's guidance of $95 million to $110 million, showing the kind of fiscal discipline rarely seen in the capital-intensive eVTOL space. The company has also hit multiple key milestones on schedule, from FAA certification progress to the completion of its ARC manufacturing facility in Covington, Georgia. In an industry that began with hundreds of aspirants, Archer Aviation has emerged as a preeminent force among publicly traded eVTOL companies in the U.S., distinguished by its fortress balance sheet, remarkable execution, and a clear path to market in the defense and civilian arenas. With dilution risk largely mitigated and a credible trajectory to profitability ahead, Archer appears exceptionally well positioned to reward patient investors as it advances toward transforming urban air mobility from concept to reality. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $360,040!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $46,374!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $570,894!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of February 3, 2025 George Budwell has positions in Archer Aviation, BlackRock, and Joby Aviation. The Motley Fool has positions in and recommends S&P Global. The Motley Fool has a disclosure policy. Archer Aviation's Latest Capital Raise Shows the eVTOL Pioneer Is Ready for Takeoff was originally published by The Motley Fool Sign in to access your portfolio
