Investors must be wondering if NetLink NBN Trust would do an Asian Pay TV Trust (APTT) or Hutchison Port Holdings (HPH) Trust. Both the unit prices of APTT and HPH suffered catastrophic meltdowns in recent years due to declining business fundamentals. Incidentally, Temasek Holdings is a major shareholder in all the three trusts.
Even though both APTT and HPH Trust are favoured by investors for their high yields, the plunge in their unit prices would have offset the returns. Thus, the important lesson for NetLink NBN Trust investors is never judge a trust by its yield. Always make the effort to understand the business fundamentals when investing in equities. While big boys like Temasek Holdings can afford to lose monies in their investments, retail investors surely don’t have such deep pockets.
There are analysts who claimed that NetLink NBN Trust is a low