In today’s briefing:
- Keppel Infrastructure Trust (KIT) – An Erosion of Trust
- What It Takes to Bring Back Overseas Investors once They Have Left ….
Keppel Infrastructure Trust (KIT) – An Erosion of Trust
- Incentives drive behavior. Designing a good fee structure is paramount in managing potential conflicts of interests.
- This is all the more important in Singapore’s REIT and Business Trust sector, where the use of external manager and Trustee Manager is the norm.
- This is in sharp contrast to all for profit companies, where internal management teams manage the businesses for the benefit of all (or most) shareholders.
What It Takes to Bring Back Overseas Investors once They Have Left ….
- Since the ROE of Japanese companies is lower than that of U.S. and European companies, few companies become the companies of choice for long-term investors to invest in.
- Overseas investors bought significant overbought of Japanese equities in previous year, in the hope that the shift to inflation would trigger an improving ROE as they used their cash reserves.
- Simply using cash on hand for shareholder returns doesn’t create value. To bring investors back, the key is to let them know that it won’t take much to see results.
💡 Before it’s here, it’s on Smartkarma
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