Skip to main content

SGX’s Three REITs ETFs in Focus

SGX’s Three REITs ETFs in Focus

 

 

 

24 November 2017

 

 

 

Market Updates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SGX’s Three REITs ETFs in Focus

 

 

 

  • Since listing, Phillip SGX APAC Dividend Leaders REIT ETF, NikkoAM-StraitsTrading Asia ex Japan REIT ETF and Lion-Phillip S-REIT ETF have generated total returns of +6.3% (in SGD terms annualised), +12.8% (since 29th March 2017) and +1.8% (since 30th October 2017) respectively.

 

  • These ETFs pay dividends on semi-annual or quarterly basis, with competitive management fees of 0.3% to 0.5%, and competitive average bid-ask spreads of 21bps to 60bps.

 

  • SGX’s three REITs ETFs aim to provide investors with low-cost access to high-quality Singapore and Asia-Pacific REITs that offer sustainable income streams and potential for capital growth.

 

 

 

 

 

Phillip SGX APAC Dividend Leaders REIT ETF

 

The Phillip SGX APAC Dividend Leaders REIT ETF – the first REITs ETF launched by Phillip Capital Management – was listed on 20 October 2016. It seeks to provide investors a high level of income and moderate long-term capital appreciation by tracking the performance of 30 publicly traded REITs in the Asia Pacific ex-Japan region. It is the first-ever ETF focusing on Asia Pacific REITs, allowing investors a convenient and easy way to gain broad exposure to the best REITs and their prime real estate assets in the region.

 

The ETF, which tracks the SGX APAC Ex-Japan Dividend Leaders REIT Index, will rank and weight the underlying constituents based on the total dividend paid by the REITs in the previous 12 months. This ensures only the largest and highest dividend-paying REITs are invested in, while poor performers are weeded out.

 

The ETF has REITs with properties in Australia, Singapore and Hong Kong with a weightage of 58.4%, 27.5% and 13.5% respectively. In terms of REIT classifications, the Index is focused heavily on retail REITs which make up 46.5% of its portfolio.

 

The ETF paid its first semi-annual dividend in April 2017. The annualised dividend yield stands at 4.2% per annum (net of tax).

 

Since listing, the ETF has generated annualised total returns of +6.3% (in SGD terms) and + 9.6% (in USD terms). In the 2017 year-to-date, the ETF has generated total returns of +8.8% (in SGD terms) and +17.0% (in USD terms). For more details, click here

 

NikkoAM-StraitsTrading Asia ex Japan REIT ETF

 

NikkoAM-StraitsTrading Asia ex Japan REIT ETF was launched by Nikko Asset Management and Straits Trading Company on 29 March 2017. SGX-listed REITs make up 70% of the ETF, with Hong Kong, China and Malaysian REITs comprising the remaining 30%. The ETF will track the FTSE EPRA/NAREIT Asia ex Japan REITs Net Total Return SGD Index, which has a reported index yield of 5.72% as of 31 January 2017.

 

The FTSE EPRA/NAREIT Asia ex Japan Net Total Return REIT Index is largely exposed to Singapore properties, which comprise approximately 61% of the assets, followed by Hong Kong (23%), China (8%), Malaysia (6%) and Indonesia (3%). In terms of REIT classifications, the Index has a stronger Industrial, Office and Retail REIT focus.

 

Since listing in March this year, the ETF has generated +12.8% total returns. For more details, click here

 

Lion-Phillip S-REIT ETF

 

Lion Global Investors (LGI), together with Phillip Capital Management, launched their new REITs ETF – the Lion-Phillip S-REIT ETF – on SGX on 30th October 2017. This is the first REIT ETF on SGX and the world to comprise 100% Singapore REITs and is designed to provide investors with low-cost access to 23 high-quality S-REITs that offer sustainable income streams.

 

The Lion-Phillip S-REIT ETF tracks the Morningstar® Singapore REIT Yield Focus Index, which comprises 23 Singapore REITs. The trailing 12-Month Dividend Yield of the index is 5.75%.

 

Office properties comprise 34% of the ETF portfolio, while retail has 27%, industrial 26% and hospitality 10%, with healthcare comprising 3%.

 

The portfolio is rebalanced semi-annually – in June and December – and the weights for individual REITs are capped at 10%. The ETF has semi-annual distributions – in February and August. The Designated Market Makers are Commerzbank and Phillip Securities.

 

Since listing last month, the ETF has generated a price gain of +1.8% from its offer price of S$1.00. For more details, click here

 

 

Phillip SGX APAC Dividend Leaders REIT ETF (BYI and BYJ)

 

NikkoAM-StraitsTrading Asia Ex Japan REIT ETF (CFA)

 

Lion-Phillip S-REIT ETF (CLR)

Listing date

20th October 2016

 

29th March 2017

 

30th October 2017

Management Fee

0.30% p.a.

 

0.50% p.a.

 

0.50% p.a.

Geographical breakdown of underlying REITS

Australia 58.4%, Singapore 27.5%Hong Kong 13.5%

 

61% Singapore, 23% Hong Kong and 8% China, 6% Malaysia, 3% Indonesia (Source: FTSE, 31 Jan 2017)

 

100% Singapore-listed

AUM (indicate as of date)

US$18mil

 

S$96mil

 

S$116.7mil

As of 22 Nov 2017

 

As of 22 Nov 2017

 

As of 22 Nov 2017

Index indicative dividend yield (per annum)

4.2% (net of tax)

 

5.72% before tax

 

5.75% before tax

   

as of 31 January 2017

   

Distribution period

Semi-Annual

 

Quarterly

 

Semi-Annual, February and August

Average daily traded value

73,903

 

179,000

 

942,113

(last 3 months)

     

(30 Oct – 17 Nov)

Average bid-ask spread

60 bps

 

29 bps

 

21 bps

Bloomberg code

PAREIT SP (US$)

 

AXJREIT SP

 

SREITS SP

PAREITS SP (SG$)

 

 

 

 

Source: Bloomberg & ETF Manager’s websites (data as of 23 November 2017).

 

ETFs

 

ETFs are investment funds listed and traded intraday on a stock exchange. The majority aim to track the performance of an index and provide access to a wide variety of markets and asset classes, including local stocks, international securities, bonds, commodities or money markets.

 

Each ETF gives investors access to the performance of the asset that comprises the underlying index. Investing in the ETF is also less costly if one was to build a similar portfolio by buying the individual stocks. It also provides exposure to international markets and asset classes that may be inaccessible to individual investors.

 

 

 

 

My Gateway

 

SGX’s investor education portal with market, product and investment information and events. Sign up now at sgx.com/mygateway to receive our investment updates and economic calendar.

 

 

 

SGX StockFacts

 

Whether you are seeking new or established companies to invest in, SGX StockFacts can provide you with the information you need to identify and understand the stocks that best fit your investment strategy. Visit now at sgx.com/stockfacts.

 

 

 

 

This document is not intended for distribution to, or for use by or to be acted on by any person or entity located in any jurisdiction where such distribution, use or action would be contrary to applicable laws or regulations or would subject Singapore Exchange Limited (“SGX”) to any registration or licensing requirement. This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document is for general circulation only. It does not address the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a financial adviser regarding the suitability of any investment product before investing or adopting any investment strategies. Use of and/or reliance on this document is entirely at the reader’s own risk. Further information on this investment product may be obtained from www.sgx.com. Investment products are subject to significant investment risks, including the possible loss of the principal amount invested. Past performance of investment products is not indicative of their future performance. Examples provided are for illustrative purposes only. While each of SGX and its affiliates (collectively, the “SGX Group Companies”) have taken reasonable care to ensure the accuracy and completeness of the information provided, each of the SGX Group Companies disclaims any and all guarantees, representations and warranties, expressed or implied, in relation to this document and shall not be responsible or liable (whether under contract, tort (including negligence) or otherwise) for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind, including without limitation loss of profit, loss of reputation and loss of opportunity) suffered or incurred by any person due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information, or arising from and/or in connection with this document. The information in this document may have been obtained via third party sources and which have not been independently verified by any SGX Group Company. No SGX Group Company endorses or shall be liable for the content of information provided by third parties. The SGX Group Companies may deal in investment products in the usual course of their business, and may be on the opposite side of any trades. SGX is an exempt financial adviser under the Financial Advisers Act (Cap. 110) of Singapore. The information in this document is subject to change without notice. This document may only be onward disseminated by the recipient wholly or in part if its content is attributed to SGX. This document shall not otherwise be reproduced, republished, uploaded, linked, posted, transmitted, adapted, copied, translated, modified, edited or otherwise displayed or distributed in any manner without SGX’s prior written consent.