KUALA LUMPUR (Oct 5): Phillip Capital Management (S) Ltd, a Singapore-based fund management company, launched its first Asia Pacific REIT Exchange Traded Fund called Phillip SGX APAC Dividend Leaders REIT ETF (REITs ETF), which is to be listed on the Singapore Exchange (SGX-ST).
The REITs ETF will track the recently launched SGX APAC Ex-Japan Dividend Leaders REIT Index, before fees and expenses, and will comprise the top 30 REITs listed in the Asia Pacific exchanges, with the exception of Japan.
The REITs will be ranked according to total dividend paid to their unitholders in the preceding 12 months, to offer investors a transparent and accessible avenue to a collection of REITs that offer sustainable dividend income.
Phillip Capital Management managing director and chief investment officer Jeffrey Lee Chay Khiong said, "We are very excited to be able to offer this unique REITs ETF to investors. When we worked with SGX to craft the index strategy for our investable REITs ETF, we wanted to bring to market a transparent and cost-effective product that offered investors attractive dividend income from high quality REITs in the region, many of which we have been investing in through our actively managed REIT portfolios."
The initial offer period will open at 9am on Oct 5 and close at 10am on Oct 13. Once listing has been completed and SGX-ST is confident all necessary commencement conditions of trading in the units have been satisfied, trading on the Main Board of the SGX-ST can begin at 9am on Oct 20.
The units of the REITs ETF can be applied through the participating dealers, which currently include Phillip Securities Pte Ltd, DBS Vickers Securities (Singapore) Pte Ltd, ABN AMRO Clearing Bank N.V., Commerzbank AG and UOB Kay Hian Pte Ltd.
After the expiry of the initial offer period, retail investors may purchase or sell units either through the participating dealers or SGX-ST.
"We believe the asset class will continue to be supported by investors looking for predictable yields and a hedge to inflation. At the same time, global investor flows into REITs are expected to rise now that they have been designated their own Global Industry Classification Standard sector in September," said Lee.
Before investing in the REITs ETF, potential investors are advised to consult with a financial adviser and obtain the prospectus and product highlights sheet from participating dealers, to be informed of the salient features and risks of investing in REITs ETF.
During the initial offer period, the indicative issue price of each unit is expected to range from US$0.88 to US$1.10 for the primary currency of US$, and S$1.188 to S$1.485 for the secondary currency of S$ (assuming a US$/S$ exchange rate of 1.35).