Investment Invest in Singapore-listed foreign trusts with caution
The recent reports about Singapore-listed Eagle Hospitality Trust are worrying (Eagle Hospitality Trust directors, officers under MAS and CAD probe, June 5, and Eagle Hospitality Trust posts US$8.9m Q1 loss, May 17).

Trade in Eagle Hospitality Trust has been suspended.

Over the past few years, there have been quite a few foreign commercial real estate investment trusts (Reits) and trusts which went through initial public offerings (IPOs) and listed on the Singapore Exchange.

For example, Asian Pay Television Trust was priced at close to $1 during its IPO in 2013, and was projected to offer a yield of more than 8 per cent in 2014.

Later, a dividend cut of around 80 per cent resulted in the share price falling. Now its price is around 13 cents.

Investors need to be wary of foreign trust IPOs and not be swayed even if they promise more than 10 per cent returns, as there is greater risk and volatility with these holdings. They are unlike our own Singapore Reits and trusts which have rewarded investors with steady, good returns and capital appreciation.

Matthew Yeo

Source: https://www.straitstimes.com/forum/forum-invest-in-singapore-listed-foreign-trusts-with-caution

Add Comment

---