Core Viewpoint - Employees are increasingly expected to manage their own retirement planning, with the Central Provident Fund (CPF) in Singapore being a primary source of retirement savings, but it should be supplemented with income-generating equities [1] Group 1: CapitaLand Integrated Commercial Trust (CICT) - CICT is the first and largest real estate industrial trust (REIT) listed on the Singapore Exchange, owning a diverse portfolio of malls, offices, and integrated developments primarily in Singapore, with additional assets in Australia and Germany [3][4] - The REIT currently offers a yield of 4.7%, with an average lease term exceeding three years, ensuring a stable income stream [4] - CICT benefits from a strong sponsor, Capitaland Investment, which provides a pipeline of assets for future growth, although it is sensitive to interest rate changes that can affect borrowing costs and property values [5][6][7] Group 2: DBS Group Holdings - DBS is Singapore's largest bank and company by market capitalization, significantly influencing the Straits Times Index [8] - The bank has shown impressive growth, with net profit increasing by 142% from S$4.7 billion in 2020 to S$11.4 billion in 2024, and dividends per share rising by 181% from S$0.79 to S$2.22 [9] - Currently, DBS offers a yield of around 5% and has a strong track record of increasing dividends, alongside a S$3 billion share buyback program [9][10] Group 3: Singapore Exchange (SGX) - SGX has performed well financially over the past five years, with net profit increasing by nearly 46% from S$445 million in FY2021 to S$648 million in FY2025, despite previous perceptions of being primarily a dividend stock [13] - The exchange operates as a "toll gate" business, generating revenue from transaction fees, with only 2% of FY2025 revenue coming from listing fees [14] - SGX maintains a strong dividend yield of around 2.2% and has consistently increased dividends since FY2009, benefiting from its monopoly status in a major financial hub [14][16][17]

Industry Overview - The Zacks Investment Bank industry is expected to benefit from increased trading income due to heightened market volatility and client activity amid geopolitical and macroeconomic uncertainty [1][4] - Investments in artificial intelligence (AI) and technology are anticipated to enhance long-term efficiency despite short-term cost pressures [1][7] - The industry consists of firms providing financial products and services, including advisory-based financial transactions to corporations, governments, and financial institutions [3] Current Trends - The trading business is projected to remain solid, with client activity influenced by macroeconomic and geopolitical conditions, leading to increased trading income [4][6] - Underwriting and advisory businesses are showing signs of recovery after a slump, with expectations of a rebound in investment banking activity [5][6] - Technology investments are expected to improve operational efficiency, despite rising technology-related expenses in the near term [7] Performance Metrics - The Zacks Investment Bank industry ranks 97, placing it in the top 39% of over 250 Zacks industries, indicating solid near-term prospects [8][9] - The industry has outperformed the S&P 500 and the broader finance sector, with a collective stock surge of 34.1% over the past year compared to 11.7% for the S&P 500 [11] - The trailing 12-month price-to-tangible book ratio (P/TBV) for the industry is 2.81X, significantly lower than the S&P 500's 13.14X, indicating a discount compared to the broader market [14][16] Key Players - **Morgan Stanley**: With a market cap of $225.7 billion, the company is focusing on diversifying its revenue sources and has seen a 42% increase in shares over the past year [22][19] - **Goldman Sachs**: This company has a market cap of $212 billion and has experienced a 52.6% share price increase over the past six months, supported by robust client engagement and digital transformation [27][24] - **Robinhood**: With a market cap of $73.5 billion, Robinhood's shares have soared 310.8% in the past year, driven by its commission-free trading model and efforts to expand its product base [32][29]