PHILLIP FUNDS FOCUS & ALLOCATOR

10 Dec 2018
Phillip Allocator December 2018

In US, the IHS Manufacturing Purchasing Manager Index (PMI) registered at 55.3 for Nov 2018, down slightly from 55.7 in Oct 2018, where a reading above 50 indicate growth. The manufacturing sector still signalled a solid improvement in operating conditions, supported by fastest increase in new orders and sharp rise in employ-ment. The ISM new orders index rose 4.7% MoM from 57.4 in Oct 2018 to 62.1 in Nov 2018, a rebound from 18-month low. Manufacturers increased the pace of hiring, noting that greater production requirements had prompted them to hire additional workers. This is reflected in ISM employment index which rose by 1.6% MoM to 58.4 in Nov 2018. Despite trade tension, US economy has grown at a healthy pace this year, reflected through the increase in GDP of 3.5% in 3Q2018.

14 Nov 2018
Phillip Fund Focus November 2018

In US, the IHS Manufacturing Purchasing Manager Index (PMI) inched up slightly at 55.7 in Oct 2018. Nonfarm payrolls increased by 250,000 in Oct 2018 indicates that companies in US were still adding more jobs in the market. Cost of employment increased in 3Q2018 as labour market tightening, due to accelerated private sectors salaries. On the US housing, contracts to buy previously-owned US homes rose 0.5% MoM, indicate that the recent market slump may start to stabilize. The rise in employment with higher wage growth signalled a further pick up in US growth momentum.

09 Nov 2018
Phillip Allocator November 2018

In US, the IHS Manufacturing Purchasing Manager Index (PMI) registered at 55.7 in Oct 2018, increased from 55.6 in Sep 2018, where a reading above 50 indicate growth. The notable development in the health of the sector was a sharp increase in new business. Nonfarm payrolls increased by 250,000 in Oct 2018 indicates that companies in US were adding more jobs in the market. Cost of employment in-creased in 3Q2018 as labour market tightening, due to accelerated private sectors salaries. On the US housing, contracts to buy previously-owned US homes rose 0.5% MoM, indicate that the recent market slump may be start to stabilize. The rise in em-ployment with higher wage growth signalled a further pick up in US growth momen-tum.

19 Oct 2018
Phillip Fund Focus October 2018

In US, the IHS Manufacturing Purchasing Manager Index (PMI) registered at 55.6 in Sep18, a jumped from 54.7 in Aug18, where a reading above 50 indicates growth. The overall operating condition across the US manufacturing sector showed strong improvement driven by sharper rises in output and new orders. New orders continued being boosted from strong domestic demand. In Sep18, 134,000 jobs were created in US and unemployment rate dropped to 3.7%, reaching the lowest level since Dec69. On a separate note, US, Mexico, and Canada have agreed on forming United States-Mexico-Canada Agreement (USMCA) to replace NAFTA which will offer some sense of stability on trade related issues.

15 Oct 2018
Phillip Allocator October 2018

In US, the IHS Manufacturing Purchasing Manager Index (PMI) registered at 55.6 in Sep 2018, a jumped from 54.7 in Aug 2018, where a reading above 50 indicate growth. The overall operating condition across the US manufacturing sector showed strong improvement driven by sharper rises in output and new orders. New orders continued being boosted from strong domestic demand. In Sep 2018, 134,000 jobs were created in US and unemployment rate dropped to 3.7%, reaching the lowest level since Dec 1969. US, Mexico, and Canada have agreed on forming United States-Mexico-Canada Agreement (USMCA) to replace NAFTA. Although the agreement might offer some sense of stability on trade related issues, rising interest rate environment has elevated concern on investors.

20 Sep 2018
Phillip Fund Focus September 2018

In US, the IHS Manufacturing Purchasing Manager Index (PMI) registered at 54.7 in Aug18, a slightly lower reading compared to 55.3 in July 2018, where a reading above 50 indicates growth. Output growth remained strong supported by greater new order volumes, rise in output and renewed increased in export sales. On the other hand, input cost rose despite inflation softened to six-month low due to new trucking regulations and tariffs. The US economic growth is still driven by domestic market where the strongest growth was seen in robust demand from consumer goods.

13 Sep 2018
Phillip Allocator September 2018

In US, the IHS Manufacturing Purchasing Manager Index (PMI) registered at 54.7 in Aug 2018, a slightly lower reading compared to 55.3 in July 2018, where a reading above 50 indicate growth. Output growth remained strong supported by greater new order volumes, rise in output and renewed increased in export sales. On the other hand, input cost rose despite inflation softened to six-month low due to new trucking regulations and tariffs. US economy growth is still driven by domestic market where the strongest growth is being seen in robust demand from consumer goods.

15 Aug 2018
Phillip Fund Focus August 2018

In US, the IHS Manufacturing Purchasing Manager Index (PMI) registered at 55.3 in Jul18, a slightly lower reading compared to 55.4 in Jun18, where a reading above 50 indicates growth. Production continues to rise across the US manufacturing sector in Jul18, extending the current sequence of growth that began since Jun16. Increased in output was driven by greater client demand and larger new order volumes. In the meantime, US economic growth has been driven largely by the domestic market. GDP increased 4.1% yoy in 2Q18 whilst consumer spending rose 4.0% in Jun2018.

10 Aug 2018
Phillip Allocator August 2018

In US, the IHS Manufacturing Purchasing Manager Index (PMI) registered at 55.3 in July 2018, a slightly lower reading compare to 55.4 in June 2018, where a reading above 50 indicate growth. Production continues to rise across the US manufacturing sector in July 2018, extending the current sequence of growth that began since June 2016. Increased in output was driven by greater client demand and larger new order volumes. In the meantime, US economy growth has been driven largely by the domes-tic market. GDP increased 4.1% yoy in 2Q18 whilst consumer spending rose 4.0% in June 2018.

18 Jul 2018
Phillip Fund Focus July 2018

In US, the IHS Manufacturing Purchasing Manager Index (PMI) registered at 55.4 in Jun18, a slightly lower reading compares to 56.4 in May18, where a reading above 50 indicates growth. The PMI eased to its lowest in four months as output and new orders expanded at the slowest rates since Nov17. According to IHS Markit`s PMI surveys, recent tariffs were cited as contributing to sharp rise in input costs and worsened the supply chain delays. US headline inflation rate increased from 2.5% in May18 to 2.8% in Jun18 partly due to some higher input costs as a result from higher price for raw materials and transportation were partially passed onto clients.

09 Jul 2018
Phillip Allocator July 2018

In US, the IHS Manufacturing Purchasing Manager Index (PMI) registered at 55.4 in June2018, a slightly lower reading compare to 56.4 in May2018, where a reading above 50 indicate growth. The PMI eased to its lowest in four months as output and new or-ders expanded at the slowest rates since Nov2017. According to IHS Markit`s PMI sur-veys, recent tariffs were cited as contributing to sharp rise in input costs and worsened the supply chain delays. US headline inflation rate increased from 2.5% in May2018 to 2.8% in June2018 partly due to some higher input costs as a result from higher price for raw materials and transportation were partially passed onto clients.

20 Jun 2018
Phillip Fund Focus June 2018

In US, the IHS Manufacturing Purchasing Manager Index (PMI) registered 56.4 in May18, down fractionally from 56.5 in Apr18, where a reading above 50 indicates growth. The latest surveyed data signaled strengths in business conditions across US manufacturing sector. This is mainly driven by a sharp increase in production and new orders in May18 which recorded at 61.5 and 63.7 as opposed to 57.2 and 61.2 in Apr18. Strong domestic demands in May18 has strained business operating capacity, as backlog increased and supplier delivery time lengthened. The economic improvement in US is further supported by job growth accelerated with US non-farm payroll increased by 223,000 in May18 and unemployment rate drop to an 18 year low of 3.8% in May18.

07 Jun 2018
Phillip Allocator June 2018

In US, the IHS Manufacturing Purchasing Manager Index (PMI) registered 56.4 in May2018, down fractionally from 56.5 in Apr2018, where a reading above 50 indicate growth. The latest surveyed data signalled strengths in business conditions across US manufacturing sector. This is mainly driven by a sharp increase in production and new orders in May2018 which recorded at 61.5 and 63.7 as opposed to 57.2 and 61.2 in Apr2018. Strong domestic demands in May2018 has strained business` operating capacity, as backlog increased and supplier delivery time lengthening. The economy improvement in US is further supported by job growth accelerated with US non farm payroll increased by 223,000 in May2018 and unemployment rate drop to an 18 year low of 3.8% in May2018.

24 May 2018
Phillip Fund Focus May 2018

The US Federal Reserve (US Fed) decided to keep its federal funds rate (FFR) unchanged between 1.50-1.75% in the latest FOMC meeting. Although inflation on 12-month basis run near the committee`s 2.0% target, their long-term expectation for it has not changed much and they will continue to carefully monitor the actual and expected inflation development. The labour market on the other hand, continued to strengthen as the unemployment rate inched lower, to 3.9% in Apr18 from 4.1% in Mar18. The nonfarm payroll added 164,000 new jobs in the market, after 135,000 gain in Mar18 and 324,000 in Feb2018. The job gains occurred mainly in the professional and business services, manufacturing, health care, and mining industry.

14 May 2018
Phillip Allocator May 2018

The US Federal Reserve (US Fed) decided to keep its federal funds rate (FFR) un-changed between 1.50-1.75% in the latest FOMC meeting. Although inflation on 12-month basis run near the committee’s 2.0% target, their long term expectation for it has not change much and they will continue to carefully monitor the actual and ex-pected inflation development. The labour market on the other hand, has continued to strengthen as the unemployment rate inched lower, to 3.9% in Apr2018 from 4.1% in Mar2018. The nonfarm payroll added 164,000 new jobs in the market, after 135,000 gain in Mar2018 and 324,000 in Feb2018. The job gains occurred mainly in the pro-fessional and business services, manufacturing, health care, and mining industry,

17 Apr 2018
Phillip Fund Focus April 2018

The global trade experienced heightened uncertainly on the first week of Apr18 when Trump administration announced its trade tariff plan (under section 301 of the US Trade Act 1974) that will impact USD 50b worth of Chinese goods, targeting on the industrial technology, transportation and medical products. China retaliation caused the US President, Donald Trump to instruct the United States Trade Representative (USTR) to consider additional USD 100b worth of Chinese goods. Amidst the global trade tension, US`s ISM manufacturing PMI continued to grow, registered at 59.3 in Mar18 albeit at slower pace vs 60.8 in Feb18, where a reading above 50 indicates the manufacturing economy is expanding.

09 Apr 2018
Phillip Allocator April 2018

The global trade experienced heightened uncertainly on the first week of Apr2018 when Trump administration announced its trade tariff plan (under section 301 of the US Trade Act 1974) that will impact USD 50b worth of Chinese goods, targeting on the industrial technology, transportation and medical products. China retaliation caused the US President, Donald Trump to instruct the United States Trade Representative (USTR) to consider additional USD 100b worth of Chinese goods. Amidst the global trade uncertainty, US`s ISM manufacturing PMI continue to be in expansionary mode, registered at 59.3 in Mar2018 albeit at slower pace vs 60.8 in Feb2018, where a reading above 50 indicate the manufacturing economy is generally expanding.

21 Mar 2018
Phillip Fund Focus March 2018

The US ISM manufacturing index jumped to 60.8 in Feb18 from 59.1 in Jan18 thanks to better business conditions which were driven by new orders and production that was sustained at high utilization rate. Employment increased by 5.5% MoM to support production and expansion in order backlogs. Exports and imports continued to grow in tandem with healthy global trade, albeit heightened concerns recently on US trade protectionism policy. In Mar18, President Donald Trump announced a 25% import tariffs on steel and 10% for aluminium with the exemption of Canada and Mexico, which are set to be implemented on 23Mar18. Prior to the implementation date, trading allies are able to make a negotiation to be exempted.

12 Mar 2018
Phillip Allocator March 2018

The US ISM manufacturing index jumped to 60.8 in Feb18 from 59.1 in Jan18 thanks to better business conditions which driven by new orders and production that was sustained at high utilization rate. Employment increased by 5.5% MoM to support production and expansion in order backlogs. Exports and imports continued to grow in tandem with healthy global trade, albeit heightened concerns recently on US trade protectionism policy. On 8Mar18, President Donald Trump announced the 25% import tariffs on steel and 10% for aluminium with the exemption of Canada and Mexico, which are set to be implemented on 23Mar18. Prior to the implementation date, trad-ing allies are able to make a negotiation to be exempted.

21 Feb 2018
Phillip Fund Focus February 2018

The US Conference Board`s consumer confidence index rose to 125.4 in January from the revised 123.1 in December, indicating that Americans have a slight improved outlook on the economy. In addition, present conditions measure dropped to 155.3 from 156.5 while consumer expectations gauge increased to 105.5 from 100.8. Aside from that, U.S. President Donald Trump has approved for the implementation of tariffs on solar panels and washing machines as part of his “America First” trade policy which intends to protect local U.S. manufactures from foreign competition. Reactions to the new policy have been mostly negative amongst foreign manufactures and their respective home countries. Nations such as China and South Korea, whose local manufactures would be deeply affected, vowed to take action against the trade move along with plans to bring their concerns to the World Trade Organization (WTO).