Retail investors of Astrea IV bonds know a good deal when they see one

THE overwhelming response to Astrea IV bonds by retail investors is a sign of their growing appreciation for sophisticated investments as well as a reflection of their desire for better yields at a reasonable risk.

When Azalea Asset Management, a Temasek Holdings subsidiary, launched the bonds for sale in early June, some sceptics were quick to pan them as either too esoteric or risky.

The doubts may be justifiable in form but not in substance. It is true that Astrea IV's retail offer has no precedent and retail investors' knowledge and exposure to private equity are practically non-existent. After all, this was Singapore's first private equity bond for retail investors as well as the world's first listed one for retail investors.