Tag Archives: apple

3 Top-Rated Pacific Mutual Funds To Invest In

The Pacific Basin countries constitute one of the world’s most diverse and economically vibrant regions. Among its inherent strengths are considerable technological capabilities and a growing pool of savings. Prominent centers of production and fast growing potential markets in this part of the world also ensure that it is an exciting investment destination. With a high degree of diversification between developed and developing markets, mutual funds from this sector present a healthy mix of growth opportunities and safety for capital invested. Below we share with you 3 top-ranked Pacific Mutual Funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Matthews Asia Growth Investor (MUTF: MPACX ) seeks capital growth over the long run. MPACX invests a major portion of its assets in stocks of Asian companies. MPACX primarily focuses on acquiring common and preferred stocks of companies. MPACX may also allocate a significant portion of its assets in convertible securities of companies irrespective of their quality and maturity period. Matthews Asia Growth Investor fund has a three-year annualized return of 1.5%. As of September 2015, MPACX held 69 issues with 3.92% of its total assets invested in Orix Corp. Matthews Korea Investor (MUTF: MAKOX ) invests a large chunk of its assets in common and preferred stocks of South Korean companies. MAKOX focuses on mid- to large-cap firms, but is not restricted to them. MAKOX seeks long-term capital appreciation. The Matthews Korea Investor fund is non-diversified and has a three-year annualized return of 6.1%. MAKOX has an expense ratio of 1.11% as compared to the category average of 1.86%. Fidelity Pacific Basin (MUTF: FPBFX ) seeks long-term growth of capital. FPBFX invests a major portion of its assets in securities of issuers located in or economically tied to the Pacific Basin. FPBFX primarily focuses on acquiring common stocks of companies located across a wide range of Pacific Basin countries. Factors such as financial strength and economic conditions are considered before investing in a company. The Fidelity Pacific Basin fund has a three-year annualized return of 5%. John Dance is the fund manager of FPBFX since Oct. 2013. Original Post

Apple Debt Trajectory Could Pressure Credit Rating By End of 2017

With Apple readying a new bond sale to increase shareholder returns, Moody’s Investors Service says Apple ’s ( AAPL ) debt could top $100 billion by year-end 2017 on its current trajectory, which would put its Aa1 credit rating under more scrutiny. Apple is expected to tap the bond market for its fifth multi-billion dollar offering since 2013, when activist investor Carl Icahn stepped up pressure  for Apple to increase capital returns. Cupertino, Calif.-based Apple’s debt has shot up from $17 billion in fiscal Q3, 2013 to $63 billion in its fiscal Q1, ended Dec. 26. Apple is expected to add in a range of  $10 billion to $12 billion in new debt. In addition to Apple’s adjusted long term debt, Moody’s includes some $5 billion to $10 billion of commercial paper issuances that the company will likely use to manage its liquidity. The iPhone maker issued $8 billion in bonds in May to boost shareholder returns. Apple’s current $200 billion shareholder return program expires in March 2017. “Under the cadence established by the company’s capital return program, Moody’s calculations show an annual need of $15 billion to $20  billion in external funding or foreign cash repatriation to meet domestic  cash needs, which include shareholder payouts and acquisitions,” said Moody’s in a report. “Absent Apple repatriating its foreign-held cash, either due to tax reform or otherwise, the company’s adjusted gross debt balance could exceed $100 billion by the end of 2017. Although the company’s financial metrics will likely still be very strong, Moody’s believes that this level of debt and resulting leverage would pressure the Aa1 long term rating and/or the outlook given that Apple operates in a rapidly transforming technology sector.” Apple has some $216 billion in cash, with nearly 90% of it overseas. If companies tap overseas cash, it’s subject to repatriation taxes. With borrowing costs low, they’ve turned to the bond market. Apple stock has been pummeled on weak March-quarter guidance . Apple expects iPhone sales to fall year over year during the period, the first such drop since the introduction of the iconic product in 2007. A growing market for used, refurbished iPhones in emerging markets and the phasing out of iPhone subsidies by wireless firms in the U.S. could both be playing a role in Apple’s disappointing sales outlook. Credit rater Moody’s said in a report that it “also believes that the company will be challenged to maintain its historic sales growth momentum, as iPhone sales cycles elongate and iPad tablet units fall. Without a new blockbuster product in the near-term pipeline, Moody’s estimates that the company’s sales will likely be flat compared to 2015 results, even as cash generation remains robust.”