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Q2 Investors' Newsletter
April 2024

Galilee Investment Management

Message from CEO

 

Mr. Joseph, CEO

Dear Investors,

As we close the first quarter of 2024, I am pleased to share some significant developments and our continued commitment to growth and excellence at Galilee with you.

One of the most notable shifts in Singapore’s regulatory landscape has been the repeal of the Registered Fund Management Company (RFMC), which marks a pivotal moment for fund management companies like ours. This development underscores Singapore’s commitment to instilling greater regulatory adherence within the financial services domain. We perceive this as an opportune moment to evolve and fortify our standing within the market.

In alignment with this regulatory evolution, I am delighted to disclose our active preparations towards securing the Capital Markets Services (CMS) licence. To bolster our compliance efforts and ensure a seamless transition, we have also brought onboard our new Legal & Compliance manager, Ms. Ong Fung Yen, to ensure our operations meet the highest standards of compliance and governance required for a Licensed Fund Management Company (LFMC).

We are also delighted to announce that one of our Portfolio Managers, Mr. Chua Franklin, will be stepping up as our co-Chief Operating Officer (co-COO). In this role, Franklin will be entrusted with overseeing all investment operations within the company. His experience and dedication to since inception has made him an invaluable asset to the Galilee as we continue to navigate the complexities of the financial landscape. Please join us in congratulating Franklin on this well-deserved promotion and wishing him all the success in his expanded role.

Partnership with Metis Global (sg): elevating Trust Planning for Our Investors

We are delighted to share that we successfully hosted two Trust Presentations at our Galilee office. A big thank you to all who participated !

 

That is all from me but do read on for fund specific updates. We would like to thank you for your patience and continued support. Please feel free to reach out to us if you have any feedback.

Regards

Joseph Ong

fund Specific updates

Fund Description: The Fund was created to achieve a target annual compounded return of 18% net of fees through investment in residential real estate development in Cambodia. This closed-ended fund started in January 2020 and is targeted to close no later than December 2024. The target fund size is US$37 Million. 

Latest Economic Developments in Cambodia

Check out the latest articles featuring Cambodia’s development and growth to understand why investing in Cambodia will continue to have a place in your investment portfolio.

Cambodia has remained one of the most desirable locations for offshore property investments by Singaporean nationals over the past three-year period, said a data released by the Shanghai-based global real estate consultancy, Juwai IQI recently. Full article here (Khmer Times).

Five stalled projects in Preah Sihanouk province, including condominiums, a hotel and an office building, are set to see construction get underway once more. Full article here (Phnom Penh Post).

The entire industry has for some time been awaiting the confirmation of the details of the plans to address the situation in Sihanoukville with the unfinished buildings, and how the investment would be drummed up to support revitalising the coastal Cambodian city’s real estate projects. Full article here (Khmer Times).

Although there is a wait-and-see attitude from first-time buyers looking for the right development, investment groups could be taking advantage of some of the opportunities with certain sectors of the property market hoping to buy up stock at lower prices. Full article here (Khmer Times).

Fund Description: Compounder Fund is an open-ended fund that focuses on long-term investing in public equities around the world. The investment strategy is to find Compounders – public-listed companies that are able to grow their businesses at high-rates over the long run – through holistic fundamental analysis and holding onto their shares for years. The Fund aims to generate a 12% annualised return, net of all fees, over the long-term.

Fund Updates

As of 29 February 2024, the fund’s earliest series for its Class A shares is up 12.2% year-to-date compared to the S&P 500 index which is up 9.3%. Since inception on 13 July 2020, the aforementioned series is down 3.8% compared to the S&P 500 index which is up by 65.8%.

Stocks in general continued their upward trend in the first quarter of 2024 following a very strong finish to 2023. From a portfolio prospective, Compounder Fund fully sold out its position in Alteryx in January due to slow growth from the company. The proceeds from the sale were used to add to the fund’s position in Medpace. Medpace’s business performance has been strong with double digit growth and it will likely be a beneficiary when early biotech funding improves.

Notable winners so far this year include Meta Platforms Inc (formerly known as Facebook), Sea Limited, TSMC, and Chipotle which are all up more than 25% year to date.

From a fundamental standpoint, companies in Compounder Fund’s portfolio posted a decent set of results for 2023’s fourth-quarter. Many of the companies exceeded expectations and have also enjoyed accelerated growth. Nobody knows which way the macroeconomic winds will blow in 2024, but the fund’s portfolio companies continue to post encouraging results and some of them look poised to continue to accelerate growth in 2024.

And even though valuations are higher than from their low points in 2022, there are still many stocks in Compounder Fund’s portfolio which are priced at low valuation multiples which could lead to stock price appreciation when business growth accelerates and/or sentiment improves.

If you wish to find out more, please contact jeremy.chia@galileeinvestment.com.

Visit our website to get the latest updates on the Fund’s Performance and Investment Theses: 

Galilee Investment Fund VCC - Sub-Fund 1
Galilee Fixed Income Fund

Fund Description: Galilee Fixed Income Fund is an open-ended fund that focuses on sourcing out good quality assets which require debt funding, giving investors the opportunity to participate in specific projects of their choice. The Sub-Fund will invest primarily in real estate backed private or public fixed income products or deals. The Sub-Fund aims to provide investors with a stable annual dividend income yield of between 6-10% net of fees, paid out quarterly, over the long term.

Fund Updates

The first project launched for this Fund is structured as a Hospitality Fit-Out Debt Financing with a projected dividend payout of 7.5% per annum, paid quarterly with a 2-year term. This project allows investors to participate in providing debt financing for the fit-out of a series of hospitality developments to be managed by international brands such as Hilton, Citadines, Park Royal and Fraser Hospitality. 

You can find a copy of our Project Factsheet for the first project here.

The second project launched for this Fund is structured as a Global Tech Exchange Private Bridging Loan with an projected dividend payout of 10.0% per annum paid quarterly with a 1.5-year term. This project allows investors to participate in providing a secured bridging loan for the construction of the Global Tech Exchange Project.

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You can find a copy of our Project Factsheet for the second project here.

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Click here or contact investor_relations@galileeinvestment.com if you wish to find out more!

Contact us

Kindly email us at investor_relations@galileeinvestment.com or contact your usual Galilee contact if you have any questions, feedback or changes to your personal details. (Bank account, handphone, email address, residential address etc.)

Disclaimer

This confidential Newsletter (“Newsletter”) has been prepared by Galilee Investment Management Pte Ltd (“Galilee”) for distribution to selected recipients only. This Newsletter is for information purposes and shall not be construed as investment advice or for marketing purposes. While reasonable care has been taken to prepare this document, the information contained herein may not be relied upon for accuracy or completeness; and any opinion or estimate contained in this document is subject to change without notice. This Newsletter must not be published, circulated, reproduced or distributed, in whole or part, to any other person without the prior consent from Galilee. Galilee makes no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this newsletter (article), will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio given changing market conditions. Please consult a professional investment consultant prior to making any investment decision.

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Galilee Investment Management Pte Ltd (Galilee) is registered with the Monetary Authority of Singapore ("MAS") under the enhanced regulatory regime implemented by the MAS in 2012. Galilee has met the requirements of the MAS under the new regime and is regulated as a registered fund management company ("RFMC"). The material on this website is provided for your general information only and does not constitute the giving of investment advice or an offer to sell or the solicitation of an offer to buy any investment. Whilst the information contained on this site has been given in good faith and every effort has been made to ensure its accuracy, Galilee accepts no responsibility for loss occasioned as a result of reliance placed on any parts of the contents of this website and makes no warranty as to the accuracy of any such information or content.

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