Which funds could be boosted by Adobe’s record run

SINGAPORE (Sept 23): As many as 20 funds available for sale in Singapore hold software company Adobe Systems Inc. Shares of Adobe jumped 7.1% in trading to close at a record high of US$107.78 ($146) per share on Sept 21. This came after the company reported third quarter earnings that beat market expectations.

Adobe is largely known for its flash player software that is used to view web content. The company also develops and sells the widely-used Photoshop publishing software. In 3Q, Adobe’s profits grew by an impressive 55.2% y-o-y to US$270.8 million. This was driven by a 20% rise in revenue, which grew to a record US$1.5 billion. Investors are pricing in earnings growth down the line for Adobe, which currently trades at a P/E ratio of 56 times, according to Bloomberg.

Among the funds with the largest exposure to Adobe (see table below) is the growth-focused $1.5 billion AB FCP I American Growth Portfolio fund, which has a 1.5% allocation to the stock (at July 31). In Personal Wealth (Sept 12), the AB FCP I American fund was flagged as one of three well-positioned US equity funds to ride the switch out of defensive stocks to growth names. Since end-June, the fund has advanced 7% in Singapore dollar terms (at Sept 21), outpacing the 4.3% rise of the Standard & Poor’s 500 Index.

---

Related Stories

• Adobe falls after sales outlook fails to show AI uplift
• Preparing for a cookieless future
• How to innovate with AI in a privacy-protective way

---