Largest listed fund manager finds value play

Vincent Toe is the CEO of Yangzijiang Financial (YZJF), the largest fund management company listed on the SGX with an AUM of S$4.6 billion. It is backed by Yangzijiang Shipbuilding (YZJ), one of the largest shipbuilders in the world. Since it’s first day of trading in April 2022, YZJF’s share price has dived 40% to…

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Azure Capital Fund Management Singapore Private Debt Fund Singapore Hedge Funds Lyte Fund Terence Wong Blue Suit

Terence Wong, CFA

CEO and Executive Director
Azure Capital

Aug 18, 2022

Vincent Toe is the CEO of Yangzijiang Financial (YZJF), the largest fund management company listed on the SGX with an AUM of S$4.6 billion. It is backed by Yangzijiang Shipbuilding (YZJ), one of the largest shipbuilders in the world.

Since it’s first day of trading in April 2022, YZJF’s share price has dived 40% to S$0.36. This is a 60% discount to its NAV of S$1.07.

YZJF was listed via introduction, where all YZJ shareholders were given YZJF shares. But not all the YZJ investors want exposure to a fund manager. From SGX records , T.Rowe Price Associates – a major shareholder of both YZJ and YZJF – has been shaving its interest in the latter. I believe this is a big reason behind the decline in its share price.

On a brighter note, YZJF has committed S$200m for share buyback. This should be sufficient to take out the remaining 195m shares of T.Rowe Price. At P/B of 0.4x, this may be one of the best value stocks that fund manager YZJF can find.