This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!
"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder
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ETF got right issue one meh?
ReplyDeleteDoes STI ETF has right issue or not?
No right?
Anyway, I also don't know.
For STI ETF, by nature weaker companies are eliminated so lower probability of right issues; but for REIT ETF, right issues as part of BAU. If REIT ETF doesn't participate in right issues; over long run serious dilution. Hmm .. not simple!
DeleteYou got a valid point.
DeleteWill check it out with Phillip Capital Management.
Reply from Philip Capital
DeleteQuote... ETF do not have Right Issue as they are always used as investment tool to track the performance of an Index which in this, the performance of 30 highest total dividend paying REITs in the Asia Pacific Ex Japan region.
Hence, the concept of dilution is not applicable in this instant.
End quote.
Hmm ... sound more like Synthetic ETF tracking the performance of an Index.
DeleteAsk them are they holding any underlying physical REIT shares?
I don't think it is a Synthetic ETF.
Deletehttp://www.valuebuddies.com/thread-7803-post-133687.html#pid133687
Best to ask pinpoint question.
DeleteHolding any underlying physical REIT shares?
If yes, how do you manage right issues from underlying physical REITs?