A refined 'Gift' for a changed world
Adjustments made to the index for assessing governance and business risk of Reits and business trusts aim to make the scoring more relevant to investors.
Add BT as a preferred source
THE Governance Index for Trusts (Gift) was launched in 2017 as a dedicated index for assessing the governance and business risk of real estate investment trusts (Reits) and business trusts (BTs). It recognises the unique features which set these trusts apart from other listed issuers which are companies. Most trusts on SGX are externally managed and the managers/trustee-managers have their own P&L considerations. Listed trusts are also subject to different regulations and rules under the Securities and Futures Act (SFA) and Code on Collective Investment Schemes (CCIS) for Reits, and Business Trusts Act (BTA) for BTs - and also have to comply with listing rules and the Code of Corporate Governance.
After years of growth, the Reit and BT sector may be at a crossroads.
There was the debacle with Eagle Hospitality Trust (EHT) which listed in May 2019 and was suspended in March 2020, without a single cent paid out to unitholders. EHT is now going through forensic and regulatory investigations.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
