The ETF will be listed on the Singapore Exchange.
Singapore has grown into a regional hub for Real Estate Investment Trusts (“REITs”) in Asia since the launch of the first Singapore REIT in 2002 on the back of favourable and conducive tax, regulatory and pro-business environment in Singapore1. Today, the island-state is also the second-largest REIT market in Asia, offering higher yield than most equities, according to Bloomberg. All these contributed to the impetus for Lion Global Investors and Phillip Capital Management to launch the new Lion-Phillip S-REIT ETF.
The Fund aims to provide investors with low-cost access to high-quality S-REITs that offer a sustainable stream of income and potential capital growth. Through the ETF, investors could also benefit from portfolio diversification as it invests in 23 S-REITs2 that own a wide array of real estate assets in Singapore and globally. Furthermore, REITs have exhibited lower correlation to other asset classes, thereby making it a good risk diversifier for most portfolios
The Lion-Phillip S-REIT ETF will replicate as closely as possible, before expenses, the performance of the Morningstar® Singapore REIT Yield Focus IndexSM (the “Index”), using a direct investment approach that invests in all, or substantially all, of the underlying securities constituting the Index. Designed to screen for high-yielding S-REITs, the Index uses a proprietary three-factor rules-based investment methodology that emphasises business quality, financial health and dividend yield. It caps the maximum weighting of any Index Security at 10% at each Rebalancing Reference Date3.
Lion Global Investors and Phillip Capital Management are the Manager and Sub-Manager of the Fund, respectively..
To learn more about the fund, please click here.
1 S’pore Still Seen As Major Asia Reit Hub http://www.businesstimes.com.sg/real-estate/spore-still-seen-as-major-asia-reit-hub
2 As at 31 August 2017. The number of S-REITs that constitutes the Index may be changed by Morningstar Research Pte Ltd from
time to time.
3 “Rebalancing Reference Dates” means the third Friday of June and December of each year. The rebalanced Index will be effective the following Monday. If the following Monday is a public holiday, the results will be implemented on the next Business Day. The Index Provider may determine such other dates for rebalancing and implementation (with prior written notice to the Manager).
This material and the information herein is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in the product (“REITs ETF”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. The information is subject to change at any time without notice. The value of the units and the income accruing to the units may fall or rise. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for disclosure of key features, key risks and other important information of the REITs ETF and obtain advice from a financial adviser ("FA") before making a commitment to invest in REITs ETF. In the event that you choose not to obtain advice from a FA, you should assess whether the REITs ETF is suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM or any of its Participating Dealers ("PDs").
The REITs ETF is not like a typical unit trust as it is intended for the units of the REITs ETF (the "Units") to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its net asset value ("NAV") or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units can be done through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus for more details.
Investments are subject to investment risks including the possible loss of the principal amount invested, and are not obligations of, deposits in, guaranteed or insured by PCM or any of its subsidiaries, associates, affiliates or PDs. Past performance is not necessarily indicative of the future or likely performance of the REITs ETF. There can be no assurance that investment objectives will be achieved. The regular dividend distributions, either out of income and/or capital, are not guaranteed and subject to PCM’s discretion. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the NAV of the REITs ETF. Past payout yields(rates) and payments do not represent future payout yields(rates) and payments. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.
Any use of financial derivative instruments will be for hedging and/or for efficient portfolio management. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the REITs ETF.
The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.
PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the investments mentioned herein or related thereto.
This information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The REITs ETF is not offered to U.S. Persons.
The information provided herein is based on certain information, conditions and/or assumptions available as at the date of this publication that may be obtained, provided or compiled from public and/or third party sources which PCM has no reason to believe are unreliable; and may contain optimistic statements/opinions/views regarding future events or future financial performance of countries, markets or companies. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. You must make your own financial assessment of the relevance, accuracy and adequacy of the information in this material.
Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss or consequences arising whether directly or indirectly as a result of your acting based on the Information in this material.
Manager: Lion Global Investors Limited (Co. Reg. No. 198601745D)
Sub-Manager: Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)