BOS, Lion Global Investors raise US$126m for new Asian income fund

By

Lee Meixianleemx@sph.com.sg@LeeMeixianBT

FEB 3, 201612:32 PM

BANK of Singapore (BOS) and Lion Global Investors on Wednesday announced the launch of the Lion-Bank of Singapore Asian Income Fund, offered exclusively to BOS clients.

BOS raised US$126 million during the three-week initial offer period (from Jan 11 to Feb 2, 2016).

It said that investors were attracted by the fund's diversified portfolio of Asian equities and bonds, with a covered equity call option strategy and a target distribution of 5-6 per cent per annum.

The fund offers regular income from multiple sources, namely equity dividends, bond coupons and option premium, while still being able to capture growth opportunities and manage risks, it noted. The combination of equities and bonds as well as the flexibility to hold cash reduces overall portfolio volatility, it explained.

See who is talking about OCBC BANK

Last 30 days:

• 181
• 9
• 50

30 days avg

HOT COMPANIES

EasyJet +247% messages

• GlaxoSmithKline +123%
• JMAT +52%
• Lloyds Banking +50%
• BP +39%
• Sainsbury +36%
• Sky plc +31%
• Schroders +25%
• Hargreaves Lans +23%
• Smith & Nephew +20%

• GlaxoSmithKline +123%
• JMAT +52%
• Lloyds Banking +50%
• BP +39%
• Sainsbury +36%
• Sky plc +31%
• Schroders +25%
• Hargreaves Lans +23%
• Smith & Nephew +20%

BOS decides asset allocation, and is in charge of building the equity portfolio and implementing the covered call strategy, while Lion Global Investors manages the fixed income portfolio.

BOS said this fund should benefit investors shaken from the bad start in global markets in 2016 and are wondering what they should do to grow their wealth and yet manage risks in order not to lose the value of their assets.

Lion Global Investors has a track record of coverage of Asian fixed income and equities. As at Dec 31, 2015, it managed over S$26 billion fixed income investments, making it one of the largest fixed income managers in the region.

As for BOS, its discretionary portfolio management (DPM) assets under management (AUM) have grown to account for more than 7 per cent of the bank's total AUM, it said, without elaborating with numbers.

It added that over the market cycles in the past six years, its mandates have posted compounded returns averaging 5 per cent annually.

    
 

Microsoft buys SwiftKey, maker of popular iOS, Android keyboards

Microsoft Inc has agreed to buy UK startup SwiftKey, the application company best known for its free software that replaces the default keyboard on phones and tablets manufactured by Apple Inc and Alphabet Inc. 

PHOTO: EPA

FEB 3, 20169:49 PM

[SAN FRANCISCO] Microsoft Inc has agreed to buy UK startup SwiftKey, the application company best known for its free software that replaces the default keyboard on phones and tablets manufactured by Apple Inc and Alphabet Inc.

The FT reports the deal was agreed for about US$250 million, citing people familiar with the matter.  SwiftKey is one of the most popular alternative keyboards on the iOS and Android mobile platforms, installed about 300 million times across both. It uses machine-learning to predict the ends of sentences as a user types, and after initially charging a small fee for downloads is presently monetized through in-app payments for features such as different colored themes to suit customer tastes. Crucially perhaps for Microsoft, it does not currently support the Redmond, Washington-based company's Windows Phone or Windows 10 platforms.

"It was clear to us when we met them back in 2010, that they had found an opportunity to build an incredibly exciting and global business that could scale quickly," said Alex Macpherson, head of London-based Octopus Ventures, which previously backed SwiftKey along with Accel Partners and Index Ventures. "The news that SwiftKey is to join the Microsoft family is a tremendous achievement for this innovative young business and further highlights the U.K. as a thriving global hub for entrepreneurship."

The market for third-party keyboards became more attractive to software makers since Apple first allowed such products to be installed directly into its iOS mobile operating system in 2014. Prior to this, developers were not allowed to replace the default keyboard on the iPhone or iPad. Alphabet's Android, the most popular smartphone platform in the world, permitted this as far back as 2010, paving the way for apps like SwiftKey and competitor Swype, which uses gestures and swipes rather than taps to input text, developed by Nuance Communications.

See who is talking about MICROSOFT

Last 30 days:

• 18083
• 154
• 619

30 days avg

HOT COMPANIES

EasyJet +247% messages

• GlaxoSmithKline +123%
• JMAT +52%
• Lloyds Banking +50%
• BP +39%
• Sainsbury +36%
• Sky plc +31%
• Schroders +25%
• Hargreaves Lans +23%
• Smith & Nephew +20%

• GlaxoSmithKline +123%
• JMAT +52%
• Lloyds Banking +50%
• BP +39%
• Sainsbury +36%
• Sky plc +31%
• Schroders +25%
• Hargreaves Lans +23%
• Smith & Nephew +20%

SwiftKey is developed by TouchType Ltd, a company founded in 2008 by Jonathan Reynolds, who serves as chief executive officer, as well as Den Medlock, chief technology officer, who holds a Ph.D in natural language and information processing from the University of Cambridge, according to his LinkedIn profile.

BLOOMBERG

    
 

Lenovo profit beats estimates on cost cuts amid smartphone slump

Lenovo Group Ltd posted a surprise 19 per cent increase in quarterly profit as stringent cost controls countered the impact of a faltering Chinese economy and stalling demand for smartphones and personal computers. 

PHOTO: REUTERS

FEB 3, 20162:29 PM

[BEIJING] Lenovo Group Ltd posted a surprise 19 per cent increase in quarterly profit as stringent cost controls countered the impact of a faltering Chinese economy and stalling demand for smartphones and personal computers.

The world's largest PC maker reported net income of US$300 million in the fiscal third quarter ended December, compared with analyst estimates for earnings to fall to US$242.5 million. Sales fell 8 per cent, the first decline in more than six years.

Lenovo is targeting a US$1.35 billion reduction in annual costs and the elimination of 3,200 jobs to help withstand intensifying competition in smartphones as it focuses on boosting its share of the shrinking PC sector.

The company needs to turn its phone unit profitable this year to meet a promise of ending losses within six quarters of buying the Motorola brand from Google Inc. 

See who is talking about LENOVO GROUP

Last 30 days:

• 25
• 0
• 4

30 days avg

HOT COMPANIES

EasyJet +247% messages

• GlaxoSmithKline +123%
• JMAT +52%
• Lloyds Banking +50%
• BP +39%
• Sainsbury +36%
• Sky plc +31%
• Schroders +25%
• Hargreaves Lans +23%
• Smith & Nephew +20%

• GlaxoSmithKline +123%
• JMAT +52%
• Lloyds Banking +50%
• BP +39%
• Sainsbury +36%
• Sky plc +31%
• Schroders +25%
• Hargreaves Lans +23%
• Smith & Nephew +20%

Chief Executive Officer Yang Yuanqing has said the company will try to grab greater market share in the US and Europe this year, pivoting away from intensifying competition back home in China.

It's also aiming for US$5 billion of annual sales from an enterprise division it expanded in 2014 by buying International Business Machines Corp's server division.

"Going forward, we should look at its enterprise and server business. That could be an area for profit-making," Ricky Lai, an analyst at Guotai Junan International Holdings Ltd, said before the results.

The shares have fallen 10.4 per cent this year, compared with a 14 per cent drop in the Hang Seng Index.

Lenovo is reducing its reliance on a Chinese economy growing at its slowest pace in 25 years, while whittling away at costs to counteract an ailing worldwide PC market.

BLOOMBERG