CTBC Financial Holding Co (中信金控) yesterday downplayed concerns about the suspension of trading of an England-linked real-estate investment trust amid the Brexit fallout, adding that its clients in Taiwan would not be affected.
On Tuesday, Aviva Investors, the fund arm of one of England’s largest insurers, Aviva PLC, suspended its trading on the UK Property Trust.
CTBC Financial, which became the exclusive distributor of Aviva funds in Taiwan last year, said that its clients would not be affected, as the UK Property Trust is only issued in England, not in Taiwan.
In a statement yesterday, CTBC Financial said that it sells the Aviva Investors European Real Estate Securities Fund, a securities product that invests in other European real-estate investment trusts (REIT) or shares of listed international real-estate companies, whereas the UK Property Trust invests in actual real-estate properties.
However, CTBC Financial acknowledged that the price of its REIT fund products have tumbled amid Brexit-induced market anxiety.
A market panic had compelled Aviva to suspend the UK Property Trust to preserve the interests of its investors, CTBC Financial said, adding that the suspension would help ease uncertainties and fearful sentiments among investors.
M&G Investments Ltd suspended a ￡4.4 billion (US$5.7 billion) real-estate fund on Tuesday, following on the heels of Aviva Investors and Standard Life Investments after a flurry of redemption requests, Bloomberg reported.
“The extraordinary market circumstances, which are impacting the wider industry, have resulted in a lack of immediate liquidity in the Aviva Investors Property Trust. Consequently, we have acted to safeguard the interests of all our investors by suspending dealing in the fund with immediate effect,” a company spokesman was quoted as saying in a Reuters report.
Trust managers are not likely to sell off their real-estate holdings at the current market prices to satisfy redemption demands from investors, CTBC Financial said.
As the trust invests in real-estate properties, whose liquidity is constrained by the difficulties associated with matching and finding appropriate buyers, the REIT fund it sells remains highly liquid, the Taiwanese company said.
Local regulators have also barred real-estate-linked offshore fund products, CTBC Financial added.
Despite market anxiety, the conditions for a rally are gathering, with UK real-estate prices falling 30 percent, which might be seen as an opportunity for some institutions, the company said.
“With dividend return ranging between 4 and 5 percent, REIT remains an attractive investment option, in light of falling yields for bonds,” CTBC Global Real Estate Income fund manager Chen Wen-ching (陳文卿) said.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range
ROW: A probe would determine if the rights of shareholders who were not allowed to vote yesterday had been violated, while the stock exchange also wants answers The election of board directors yesterday at Tatung Co (大同) sparked controversy after the company blocked some institutional and individual shareholders from participating in the general shareholders’ meeting, prompting the Financial Supervisory Commission (FSC) to announce that the vote would be investigated. Lin Kuo Wen-yen (林郭文艷) was re-elected as chairwoman of the household-appliance maker’s nine-member board, but prior to the vote she announced that several shareholders would not have voting rights. They were being denied a vote because they had contravened the Business Mergers and Acquisitions Act (企業併購法), and the Act Governing Relations Between the People of the Taiwan Area and