It seems to me that the association consists of big players from Keppel, Mapletree, Capitaland, Frasers and ARA Asset Management and their key thrusts are to engage Monetary Authority of Singapore on regulatory issues and to promote the understanding of REITs. This is a good development because as the industry matures, the association can help to look into areas that can be improved, especially on the structure of REITs. For example, in my previous article on REITs, I don’t understand why is there a need for external manager for REITs. Such requirement only incur more costs which would be eventually passed down to investors.
Most retail investors claim they know about the REITs they invested in but I suspected they are none the wiser than me on the business model. I hope the newly-formed association can conduct courses and seminars to promote the understanding of REITs and the risks involved investing in them. This would help to address a lot of myths on REITs and enhance investor’s knowledge.
SG Wealth Builder