1. A stronger platform with higher switching costs
iFAST is viewed as a “bull-market stock” – meaning iFAST’s revenue and share price does well when overall share prices go up. This was true when iFAST was mainly a distributor of unit trusts. As a unit trust distributor, iFAST is paid a “trailer fee” or a percentage of the unit...iFAST’s current share price has been falling because of weak equity markets and concerns over higher costs related to their UK bank acquisition. The current share price (SGD5) offers limited downside and iFAST is a stronger and better platform because of its UK bank acquisition. Here are the 3 reasons why I think there’s limited downside for iFAST based on the current share price: iFAST is a stronger wealth management platform with higher switching costsA UK bank differentiates iFAST international segmentsiFAST’s current share price is already near a worst case scenario.
