Let's look into these 3 business trusts:
1) Global
Investment (GI)
2) Asian Paid TV
Trust ( APTT )
3) Aims Property
Security Fund ( AIMS PSF )
1) Global Investment:
Our fellow investor community has shared on InvestingNote on the recent weakness in price.
It is quite comprehensive. You all can read his blog.
I just want to add on that Global Investments Ltd is a mutual fund company incorporated in Bermuda and listed on the Singapore Exchange. It was formerly known as Babcock and Brown Structured Finance Fund Ltd and managed by Australian-based Babcock and Brown group. Babcock and Brown subsequently went into liquidation amidst the credit crunch in the 2009 global financial crisis. Subsequently, in September the same year, ST Asset Management Ltd (STAM), a wholly owned subsidiary of Temasek, took over as the fund’s manager with Mr Boon Swan Foo, ex-CEO of ST Engineering, appointed to GIL’s board as chairman.
Since late April 2016, however, STAM has relinquished the manager role to Singapore Consortium Investment Management Limited (SICIM), as it focuses on the management of funds of related companies instead of 3rd party funds. The key management of GIL remains the same though as SICIM is wholly owned by the current chairman, Boon.
One key point to note: It is not subject to the Minimum Trading Price ( SGX )
In March 2015, SGX announced and subsequently implemented the Minimum Trading Price (MTP) continuing listing requirement, which obligates all SGX mainboard listed companies to maintain a minimum trading price of S$0.20 per share.
While
GI has been listed on the SGX mainboard since late 2006 and trading below the
S$0.20 per share level for the last few years, SGX has ruled that the MTP will
not apply to it as it is classified as an investment fund. This will bring
relief to some investors as they might think that GI needs to do share
consolidation to bring the price above $0.20, of which potentials investors
will choose to come on board after consolidation or existing shareholders will
sell off and come on board later.
Dividend Re-investment Scheme
There are not many trusts around that has dividend reinvestment scheme.
Using 72 rule, ( https://www.investopedia.com/ask/answers/what-is-the-rule-72/ ), it will take 7.65 years to double your holdings at 10.6cts and a dividend of 1cts per year. However, we should take about 7 years instead as dividend is paid semi-annually.
* Disclaimer: I have held GI for more than 8 years, and sold off half the quantity i have,earlier in June 2018, keeping my profits in shares in GI. Have recently added at 10.6cts again, to ride another "72" ride.
2) Asian Paid TV Trust ( APTT )
Dividend Re-investment Scheme
There are not many trusts around that has dividend reinvestment scheme.
Using 72 rule, ( https://www.investopedia.com/ask/answers/what-is-the-rule-72/ ), it will take 7.65 years to double your holdings at 10.6cts and a dividend of 1cts per year. However, we should take about 7 years instead as dividend is paid semi-annually.
* Disclaimer: I have held GI for more than 8 years, and sold off half the quantity i have,earlier in June 2018, keeping my profits in shares in GI. Have recently added at 10.6cts again, to ride another "72" ride.
2) Asian Paid TV Trust ( APTT )
Macquarie International Infrastructure Fund has listed APTT via IPO, with APTT shares distributed to its shareholders.
Since IPO of 97cts, APTT has dropped to a low of 12cts in recent weeks with the slash of dividend from 1.625cts per quarter to 0.3cts per quarter.
APTT has a book value of 78cts, and trading at $0.129 ( at point of writing ) or 0.165x book value.
Concerns: 1) Many investors have fled from APTT from the
huge volume and falling prices. The market needs some time to digest this huge
volumes and for speculation of shares to settle down.2) Historically, APTT
is trading at close to 10% yield. With a 2019 and 2020 dividend guidance of
1.2cts yearly, i am afraid that the share price will hover around 12cts.Positives: 1)
The dividend of 9.3% at $0.129, is quite attractive over a period of 2 years.
This will provide regular income for investors as 0.3cts will be paid
quarterly.
2)
Management has taken a bold move in slashing the dividend to keep the trust
alive. At 1.625cts per quarter, debts are piling up. Dividend paid will be
reduced from $93 million to $17 million per year, freeing up the cash to reduce
debt.
* I am vested at a small amount at $0.56, no immediate plans to add more at the moment.
3) AIMS Property Security Fund
There are a few attempts to liquidate the fund in recent years, which sees the corporate raiders failed in their attempts. However, every attempt has seen the fund rose in trading price.
AIMS PSF was emerged from Mac-cook PSF when they went into liquidation in 2009. AIMS has "saved" Mac-cook PSF and steered it to be debt free and a sustainable business model.
NTA has rose from A$1.17 in June 2013 to A$2.37 in June 2018, with discount to NTA reducing from 72% to 24% as of 7th November 2018 as announced on SGX.
Positives:
* I am vested at a small amount at $0.56, no immediate plans to add more at the moment.
3) AIMS Property Security Fund
There are a few attempts to liquidate the fund in recent years, which sees the corporate raiders failed in their attempts. However, every attempt has seen the fund rose in trading price.
AIMS PSF was emerged from Mac-cook PSF when they went into liquidation in 2009. AIMS has "saved" Mac-cook PSF and steered it to be debt free and a sustainable business model.
NTA has rose from A$1.17 in June 2013 to A$2.37 in June 2018, with discount to NTA reducing from 72% to 24% as of 7th November 2018 as announced on SGX.
Positives:
1) George Wang is still the largest shareholders and also the chairman of AIMS PSF, so his interest is in alignment with shareholders.
2) Quarterly dividend will be paid, which provides regular income of shareholders like me.
3) Thou the discount to NTA is shrunk to 24%, it is still a A57cts to A$2.37 from A$1.80. The management has been able to raise the NTA over the years which has brought up the share price.
4) There have been share buyback and cancellation. This will enhance the valuation of AIMS PSF.
Concern:
1) The float is really low. It is really difficult to buy more from the market without causing a rise in price.
* I am vested in AIMS PSF, with an average price of $1.655
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