Anyone thinking of investing via Singapore?

[jaymee]

Been posting here for awhile and just thought I'd post to share. I'm a broker/financial advisor for a major securites firm in Singapore so I might be able to provide great information to you guys.

Anyways main advantages at a glance for foreigners investing in Singapore are

1. tax free capital gains
2. Strong monetary policy and useful for currency diversification esp. if you hold alot of US dollars.
3. Wide access to most financial instruments being one of the financial hubs in asia.
4. Stable financial system.

Mmmm, other questions on investment strategy and the ins and outs of putting your money here can be easily addressed ...

Also, if you do actually consider investing in Singapore, you can talk to me

[manarak]

do you have CRANs on offer?

[jaymee]

(manarak @ Jun. 12 2008,14:31) do you have CRANs on offer?

What CRANs are you referring to?

If you're meaning cumulative range accruals notes, I'm wondering what specific underlying are you looking at?

Its usually only on offer for accredited investors though.

[PigDogg]

American investors have limited choices if investing back home in Singapore companies. ADRs are one route.

There's also a closed end fund currently selling at a 13% discount.

SGF

[jaymee]

(PigDogg @ Jun. 12 2008,16:28) American investors have limited choices if investing back home in Singapore companies.  ADRs are one route.

There's also a closed end fund currently selling at a 13% discount.

SGF

Oh yes, US investors can't even open trading accounts over here since your govt imposes a restriction due to tax considerations.

So ADRs are prolly your only route.

[Stewart]

If you're meaning cumulative range accruals notes, I'm wondering what specific underlying are you looking at?

I thought I spoke pretty good English......obviously not!

[jaymee]

(Stewart @ Jun. 13 2008,22:40)

If you're meaning cumulative range accruals notes, I'm wondering what specific underlying are you looking at?

I thought I spoke pretty good English......obviously not!  

I'm sorry if it sounded alien to you Its a product not offered mostly to retail investors and I had a moment trying to figure out the acronym.

You're a singaporean by any chance or an expat??

[post-op lover]

(jaymee @ Jun. 12 2008,16:25) Been posting here for awhile and just thought I'd post to share. I'm a broker/financial advisor for a major securites firm in Singapore so I might be able to provide great information to you guys.

Anyways main advantages at a glance for foreigners investing in Singapore are

---you missed one! Intelligent and beautiful financial advisors!



POL

[stogie bear]

I don't know much about investments so I'm always interested in learning about them...

If (for example) I had say... 50,000 pounds in a bank in the UK paying 7% fixed interest tax free (because I live outside the UK) then how would you talk someone into MAYBE making a lot more money by investing...

Is investing 'gambling.'

Are 'bear markets' (we are almost there...) worth my life savings?

Is investing right now worth the stress?

Are there any 'guarantees?'

It's interesting stuff but genuine independent financial consultants are hard to find so a lot of us may want to pick your brains!

Thanks for posting...

[katoeylover]

Of course Investing is gambling.

If you want safe money, then leave it in a Major bank and get 7% pa.

If you want 15% then there is a chance of losing a small amount, before gaining.

As the returns increase, the risks also increase.

The riskiest, so called Bear Markets, give good returns, but you are basically betting on shares falling so you can buy them back at a lower price.

[stogie bear]

Sounds too stressful for me... So, come the big day when I win the lottery I may as well leave it in the Abbey!  

[jaymee]

(stogie bear @ Jul. 09 2008,19:46) I don't know much about investments so I'm always interested in learning about them...

If (for example) I had say... 50,000 pounds in a bank in the UK paying 7% fixed interest tax free (because I live outside the UK) then how would you talk someone into MAYBE making a lot more money by investing...

Is investing 'gambling.'

Are 'bear markets' (we are almost there...) worth my life savings?

Is investing right now worth the stress?

Are there any 'guarantees?'

It's interesting stuff but genuine independent financial consultants are hard to find so a lot of us may want to pick your brains!

Thanks for posting...  

Hiya,

Its a risk reward ratio to put it simply - the more returns sought, the more risks towards the downside.

Stress wise, most people are naturally risk averse - but there is probably risk in everything so as the adage goes, "don't put all your eggs in one basket". This could be a mixture of stocks, bonds or even deposits in various currencies depending on your appetite.

There's no true guarantee per se, but some products can be structured to offer a certain degree of protection.

E.g. Zero coupon bonds utilises 80% of your capital to guarantee 100% of your money a few years later, and then the remaining 20% is utilised (usually in higher risk instruments) to provide the upside. However, if the bond writer defaults your guarantee goes kaput as well

Anyway, I don't know if this makes sense, but to compare it to gambling? Its a tough call.

[jaymee]

(katoeylover @ Jul. 09 2008,21:29) Of course Investing is gambling.

If you want safe money, then leave it in a Major bank and get 7% pa.

If you want 15% then there is a chance of losing a small amount, before gaining.

As the returns increase, the risks also increase.

The riskiest, so called Bear Markets, give good returns, but you are basically betting on shares falling so you can buy them back at a lower price.

I don't think deposits are completely safe sometimes, even the biggest banks can possibly go belly up (c*ti).

But really its the risk of inflation which quite likely to eat away one's purchasing power.

The actions now are going to lead to alot more inflation given Trichet and Bernanke's dovish policies, and bailing out a few more investment and financial firms would be the icing on the inflation cake.

What that means is that people who have susbtantial savings in a single currency, esp. USD would probably want to save some in a basket of currencies from countries with stable monetary policy.

[rxpharm]

Jaymee's point about inflation is very relevant. Inflation rates in Thailand are estimated to be at least 7.5% this year - so if your investments are earning 7% in the UK, you are actually behind 0.5% per annum. Your earning percentage must be ahead of the inflation rate in the country you live, or your savings are eroded. The only proven investment that has given returns greater than the inflation rate historically is the equity market.

The safest way to invest in the equity market is to use "dollar cost averaging" which means investing a set amount of money each month to buy into a mutual fund or equity index diversified between high, medium and low risk stocks. As the market drops, you will be buying more shares of the stocks, and as the market increases, less shares of the stocks.

Investment should be a long range goal 10-20-40 years down the road. 1-5 years isn't long term and really won't allow you to retire at the age you prefer unless you happen to be lucky and win the lottery.

Jaymee is a very sharp young lady, good looking and has good insight on the Singapore financial markets - thanks for sharing! Perhaps someday we can meet again!

[Stewart]

Jaymee's point about inflation is very relevant. Inflation rates in Thailand are estimated to be at least 7.5% this year - so if your investments are earning 7% in the UK, you are actually behind 0.5% per annum.

That is only half the story

If your investments are earning 7% in the UK but you plan to live in another country, what is the exchange rate doing? If sterling plummets, say, 30%, against the country you want to use the money in, you are 30% down because you have 30% less Baht or Sing dollars when you take it out

Its a risk reward ratio to put it simply - the more returns sought, the more risks towards the downside.

If that isn't a definition of gambling, then I don't know what is