iFAST Corporation - DBS Research 2016-12-09: Launches FSMOne, a single account to invest in multiple products

iFAST Corporation - DBS Vickers 2016-12-09: Launches FSMOne, a single account to invest in multiple products IFAST CORPORATION LTD. AIY.SI

iFAST Corporation - Launches FSMOne, a single account to invest in multiple products

  • iFAST Singapore launches FSMOne, a transparent and seamless way to invest in multiple products via one account.
  • Competitive commission rate for stocks to attract investors and filter demand to other products.
  • Lower bond investment size enables diversification.
  • Removal of sales charge for all funds more than offset by new products and services.  



What’s New 

  • iFAST Singapore has launched FSMOne, a transparent and seamless way for the investing community in Singapore to invest in multiple products via one account. 
  • Investors using Fundsupermart.com (FSM), the B2C platform of iFAST Singapore, now have access to the following in the newly-launched FSMOne account (www.fsmone.com).


What FSMOne offers:-


All funds / unit trusts at a permanent 0% sales charge 

  • FSMOne is the first investment platform to offer a permanent 0% sales charge on all funds for all clients.
  • FSM MAPS at 0% sales charge FSM MAPS (My Assisted Portfolio Solution) offers five different portfolios (ranging from Conservative to Aggressive) for investors of varying risk appetites and investment objectives to choose from. The sales charge on the five FSM MAPS robo-advisory portfolios is 0%.

Immediate execution on selected bonds with lower investment amount 

  • The FSMOne account enables immediate execution on selected bonds with the revamped FSM Bond Express platform. 
  • In addition, instead of a minimum investment of S$250,000 in a wholesale bond, accredited investors can now invest with a much smaller investment amount of S$5,000.

Stocks and ETFs at low commission rates 

  • Investors can invest in stocks and Exchange-Traded Funds (ETFs) listed on the Singapore Exchange (SGX) and Hong Kong Exchange (HKEX) at low commission rates of 0.12% for stocks and 0.08% for ETFs. The minimum charges are also competitive, at S$10 for SGX stocks/ETFs, and HK$50 for HKEX stocks/ETFs.

Insurance products, with a transparent fee and commission rebate structure 

  • Insurance products on FSMOne provide a transparent fee and commission rebate structure of 30% - 40% to clients.


Our Take 


Competitive commission rate for stocks to attract investors and filter demand for other products. 

  • With SGX-listed stocks and ETFs now offered on its platform, iFAST can now broaden the range and depth of investment products and services to strengthen its value proposition to B2C clients. 
  • At a competitive commission rate of 0.12% for stocks, iFAST should be able to attract more investors to use its platform, and demand could also filter to other products on its platform.

Lower bond investment size enables diversification. 

  • The lower investment amount for bonds at a minimum sum of S$5,000, from S$250,000 previously, changes the bond distribution landscape and allows iFAST to capture more market share. Investors can now have easier access to more bonds in their portfolio.

Removal of sales charge for all funds more than offset by new products and services. 

  • Though iFAST has removed the sales charge (which predominantly was applicable to equity funds previously), the launch of new products and services, such as stocks and ETFs to B2C clients and FSM MAPS, should more than offset the loss of income from sales charge.

Fully integrated platform. 

  • The introduction of FSMOne now enables iFAST to be a fully integrated investment product distribution platform, which will be key to ride on Asia's growing wealth management industry.

Maintain earnings for now. 

  • We would prefer to monitor the demand for the new products like stocks and FSM MAPS first before we adjust our earnings. 
  • As a guide, the ~S$33m AUA of the Hong Kong stocks business (launched early 2H16 for B2B) accounted for only about 2.6% of Hong Kong’s total AUA as at 30 September 2016, given the relatively stiffer competitive landscape in Hong Kong. Hong Kong accounts for 21.3% of the total AUA of S$6bn.
  • Maintain BUY; TP: S$1.20.




LING Lee Keng DBS Vickers | LIM Sue Lin DBS Vickers | http://www.dbsvickers.com/ 2016-12-09
DBS Vickers SGX Stock Analyst Report BUY Maintain BUY 1.200 Same 1.200




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