Hyflux: Laundry list of warnings says little about the likelihood of events

IN the aftermath of the financial collapse of water treatment company Hyflux, much has been said about the approximately 34,000 investors - the majority of them retail investors - who have been left holding its near-worthless perpetual securities and preference shares.

There have been sad stories of retirees who had invested a few hundred thousand dollars of their savings.

Several reasons have been advanced for this parlous state. Market watchers said this was symptomatic of a lack of investor education and appreciation of risks inherent in such products. They highlighted the role of DBS Bank, which was both manager and distributor of the perpetual securities in 2016, for marketing these products to retail investors. (The Monetary Authority of Singapore has said it hasn't uncovered any impropriety by the bank in arranging the sale of the perps.)