Global Investments Limited (GIL) posted a net profit of S$1.39 million for the six months ended Jun 30, down 37.8 per cent year-on-year, as a wider unrealised loss on its investment portfolio offset higher interest income.

Total income slipped 18.2 per cent to S$3.56 million. Earnings per share fell to 0.08 Singapore cent from 0.14 cent a year earlier. The board declared an interim dividend of 0.40 Singapore cent per share, unchanged from last year, payable on Oct 9, with the books closing on Aug 26.

Performance remained mixed across asset classes. Interest income rose 6.7 per cent to S$5.51 million, buoyed by higher coupon receipts from Additional Tier 1 (AT1) and Tier 2 bank capital securities. Dividend income, however, eased to S$0.53 million. The key drag was a S$2.63 million net loss on financial assets measured at fair value through profit or loss, more than double the S$1.07 million loss booked in the prior-year period.

By segment, AT1 and Tier 2 holdings contributed S$2.77 million in pre-tax earnings, cushioning a S$2.72 million loss from listed equities. Other Bonds & CLOs added S$3.19 million, while cash and cash equivalents generated S$0.32 million. Operating expenses edged up 3.5 per cent to S$2.13 million, driven mainly by management and other operating costs.

Net divestments of securities reduced financial assets at fair value to S$249.3 million from S$262.4 million at end-2025, while cash holdings climbed 57 per cent to S$29.1 million. Net asset value per share slipped to S$0.1643 from S$0.1682 after the payment of the FY2025 final dividend and ongoing share buybacks.

Looking ahead, GIL noted that the European Central Bank’s recent rate hike and potential further tightening, together with subdued euro-area growth, could weigh on bank margins, although sector fundamentals remain resilient. The manager expects limited Tier 2 issuance in the second half, while spreads on AT1 instruments have tightened, potentially reducing issuers’ incentive to call outstanding securities. In fixed income, the company flagged the prospect of higher volatility as the US Federal Reserve maintains a cautious stance amid sticky inflation.

For listed equities, GIL cited the International Monetary Fund’s July outlook, which pegs 2026 global GDP growth at 3.0 per cent, below the pre-pandemic trend, with inflation projected at 4.7 per cent. The firm will continue to position its portfolio across asset classes, geographies and sectors to navigate the uncertain macroeconomic backdrop.