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.
Anna Bhobho, a 31-year-old housewife from rural Zimbabwe, was once a silent observer in her home, excluded from financial and family decisionmaking in the deeply patriarchal society. Today, she is a driver of change in her village, thanks to an electric tricycle she owns. In many parts of rural sub-Saharan Africa, women have long been excluded from mainstream economic activities such as operating public transportation. However, three-wheelers powered by green energy are reversing that trend, offering financial opportunities and a newfound sense of importance. “My husband now looks up to me to take care of a large chunk of expenses,
SECTOR LEADER: TSMC can increase capacity by as much as 20 percent or more in the advanced node part of the foundry market by 2030, an analyst said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to lead its peers in the advanced 2-nanometer process technology, despite competition from Samsung Electronics Co and Intel Corp, TrendForce Corp analyst Joanne Chiao (喬安) said. TSMC’s sophisticated products and its large production scale are expected to allow the company to continue dominating the global 2-nanometer process market this year, Chiao said. The world’s largest contract chipmaker is scheduled to begin mass production of chips made on the 2-nanometer process in its Hsinchu fab in the second half of this year. It would also hold a ceremony on Monday next week to
TECH CLUSTER: The US company’s new office is in the Shalun Smart Green Energy Science City, a new AI industry base and cybersecurity hub in southern Taiwan US chip designer Advanced Micro Devices Inc (AMD) yesterday launched an office in Tainan’s Gueiren District (歸仁), marking a significant milestone in the development of southern Taiwan’s artificial intelligence (AI) industry, the Tainan City Government said in a statement. AMD Taiwan general manager Vincent Chern (陳民皓) presided over the opening ceremony for the company’s new office at the Shalun Smart Green Energy Science City (沙崙智慧綠能科學城), a new AI industry base and cybersecurity hub in southern Taiwan. Facilities in the new office include an information processing center, and a research and development (R&D) center, the Tainan Economic Development Bureau said. The Ministry
State-run CPC Corp, Taiwan (CPC, 台灣中油) yesterday signed a letter of intent with Alaska Gasline Development Corp (AGDC), expressing an interest to buy liquefied natural gas (LNG) and invest in the latter’s Alaska LNG project, the Ministry of Economic Affairs said in a statement. Under the agreement, CPC is to participate in the project’s upstream gas investment to secure stable energy resources for Taiwan, the ministry said. The Alaska LNG project is jointly promoted by AGDC and major developer Glenfarne Group LLC, as Alaska plans to export up to 20 million tonnes of LNG annually from 2031. It involves constructing an 1,290km
RSS