SINGAPORE (May 13): Global Investments (GIL) reported 1Q19 profit after tax of $12.9 million, or 0.75 cents per share, reversing from a 1Q18 loss of $2.2 million a year ago.
GIL, managed by Singapore Consortium Investment Management and listed since 2006, invests in a diversified portfolio of assets in different sectors. These include direct asset ownership, credit default swaps, debts, warrants, options, convertibles, preference shares and equity.
Income for 1Q19 came in at $14.0 million as compared to a loss of $1.1 million in 1Q18.
The higher income was mainly due to net gain on financial assets at fair value through profit or loss (FVTPL) of $9.9 million in 1Q19, versus a loss of $4.9 million a year ago.
The net gain on financial assets at FVTPL during the quarter was mainly contributed by listed equities and bank contingent convertibles.
Expenses recorded in 1Q19 and 1Q18 remained relatively unchanged at $1.0 million.
There was no other comprehensive income for 1Q19 compared to a translation loss of $1.1 million in 1Q18. As a result, total comprehensive income for the group was $12.9 million versus a loss of $3.3 million in the same quarter last year.
The net asset value per share of Global Investments as at March 31 increased to 19.53 cents from 18.69 cents as at Dec 31 2018 due to profit after tax recorded for the quarter.
Looking ahead, GIL says the late-stage of the economic expansion cycle coupled with a strong recovery in asset valuations continues to promote a more defensive stance for the conservative investor.
While concerns over the impact of central bank tightening activities have eased, the potential increase of US tariffs on Chinese trade will continue to weigh on growth expectations further.
“The Company will continue to take a cautious stance in rebalancing its portfolio of assets and adopt a selective approach in its investment, bearing in mind volatility in the financial markets,” says GIL.
Shares in GIL closed 0.1 cent lower at 13 cents on Monday.
