ETF

Phillip SGX APAC Dividend Leaders REIT ETF

Indicative Holdings

Intraday NAV

2021-10-15T09:59:01Z


1.0727

Intraday NAV

2021-10-15T09:59:01Z


1.4458

Previous Day NAV USD

2021-10-15T09:59:01Z


1.065

Previous Day NAV SGD

2021-10-15T09:59:01Z


1.4346

Total Assets USD updated as at 14/10/2021

17,689,497

Total Assets USD

NAV

Tracking Error/Difference

0.897% / 1.320%

1-Year Rolling
(as of 30 September 2021)

Morningstar RatingTM

as of 31 August 2021

Morningstar® Essentials Sustainability Rating

Out of 1167 Real Estate Sector Equity Funds as of 29-07-21.
Based on 97% of AUM. Data is based on long positions only

View FAQ section for important disclosures for Morningstar-related ratings*

PERFORMANCE

PORTFOLIO ALLOCATION

INVESTMENT OBJECTIVE & FOCUS

The investment objective of the Fund is to seek to provide a high level of income and moderate long-term capital appreciation by tracking, as closely as possible, before expenses, the performance of the iEdge APAC Ex-Japan Dividend Leaders REIT Index (the “Index”).

By tracking the Index which is ranked and weighted by total dividends, the Fund aims to enhance risk-adjusted returns above that of traditional market capitalisation-weighted indices as the 30 REITs comprising the Index will be ranked and weighted according to the highest total dividends paid in the preceding 12 months subject to size, free-float market capitalisation and liquidity constraints.

In managing the Fund, the Manager may adopt either a Replication Strategy or a Representative Sampling Strategy at its discretion. As the Fund is an index-tracking fund, it is expected that the Fund will only invest in REITs.

The Fund is classified as an EIP (Excluded Investment Product).

KEY FACTS

Manager
Phillip Capital Management (S) Ltd
Trustee
DBS Trustee Ltd
Listing Date
20 Oct 2016
Management Fee
0.30% per annum
No. of Holdings
30
Dividend Distribution
Semi-Annual
Benchmark Index
iEdge APAC Ex-Japan Dividend Leaders REIT Index

Methodology

  • The Fund tracks the index which is a fundamentally weighted index that comprises the 30 highest total dividend paying Real Estate Investment Trust (REITs) in the Asia Pacific ex-Japan region
  • Total dividends refer to each constituents’ trailing 12 month dividend per share (USD) multiplied by the free float number of outstanding shares

Investment Universe

  • Countries eligible for inclusion: Australia, China, Hong Kong, India, Indonesia, Malaysia, New Zealand, Philippines, Singapore , South Korea, Taiwan and Thailand.
  • Constituents are subject to a minimum free-float market capitalisation of US$ 300 million & a proportion of free-float market capitalisation greater than 20%. Maximum weight of a constituent will be 10%
  • The fund has a high representation of the APAC ex Japan REITs universe (> 70 %) by market capitalisation

Key Benefits

  • Low cost, easy access to a diversified and liquid basket of REITs across the Asia Pacific Region
  • Tracks the performance of the 30 highest total dividend-paying REITs
  • Offers investors significant dividend income paid semi-annually

DIVIDEND INFORMATION

Ex Dividend Date
9 July 2021
Record Date
12 July 2021
Distribution Payment Date
30 July 2021
Dividend per unit
US$ 0.00769
Dividend Payout From Capital Income
0% 100%

TRADING INFORMATION

Bloomberg Tickers
PAREIT (US$), PAREITS (SG$)
Bloomberg INAV Tickers
PAREIVU Index (US$), PAREIVS Index (SG$)
ISIN
SG1DB9000009
SEDOL
BYYQL56SG
Trading Board lot size
100 units
Trading Currency
USD (Primary) & SGD
Participating Dealers
Societe Generale, Phillip Securities, ABN Amro Clearing, UOB Kay Hian
Exchange Listing
Singapore
Subscription Mode
Cash/ SRS (SR1205, SRS only available in primary currency
Market Makers
Flow Traders Asia Pte Ltd, Phillip Securities Pte Ltd

DOCUMENTS

Factsheet

Product Highlight Sheets

Prospectus

Supplementary Prospectus

Annual Report

Semi-Annual Report

FAQ

What is iEdge APAC Ex-Japan Dividend Leaders REIT Index

The  iEdge APAC Ex-Japan Dividend Leaders REIT Index is an index offering by Singapore Exchange (SGX).The entire Asia-Pacific Ex-Japan REIT universe is screened for factors such as size, free-float and liquidity so as to arrive at a tradable and liquid basket. The liquid basket is then refined further by selecting the top 30 stocks ranked by total dividends paid in order to form the Index. The Index itself is then weighted by total dividends paid such that stocks with the larger total dividend paid have a greater
weight within the index.

What is the index methodology?

 The following factors will be used in the index construction process

  1. Total dividends paid: Counters in the Universe are screened by total dividend paid in the preceding 12 months.

  2. Free-float market capitalisation: New constituents must meet a minimum median free-float market capitalisation of US$300M, measured at each index review date. Existing constituents must meet a minimum median free-float market capitalisation of US$240M, measured at each index review date.

  3. Daily traded volume: New constituents must meet a minimum median DTV of US$400,000, measured at each
    index review date. Existing constituents must meet a minimum DTV of US$320,000.

  4. New constituents must meet a minimum free-float of 20%.

Security weights are capped at 10% to avoid excessive security concentration.

Disclosures for Morningstar Rating and Morningstar® Essentials Sustainability Rating

© 2021 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Morningstar® Essentials Quantitative (Star Rating)

For more detailed information about the Morningstar Rating, including its methodology, please go to: https://s21.q4cdn.com/198919461/files/doc_downloads/othe_disclosure_materials/MorningstarRatingforFunds.pdf

Morningstar® Essentials Sustainability

Sustainability Score as of 30 April 2021. Sustainability Rating as of 30 April 2021.

Sustainalytics provides company-level analysis used in the calculation of Morningstar’s Sustainability Score.

For more detailed information about Morningstar’s Sustainability, including its methodology, please go to: https://www.morningstar.com/content/dam/marketing/shared/Company/Trends/Sustainability/Detail/Documents/SustainabilityRatingMethodology2019.pdf?cid=AEM_RED0016

What is the difference between Exchange Traded Funds and Unit Trusts ?

While both are collective investment schemes (CIS), ETFs seek to replicate the performance of an index by buying underlying securities according to their index weights. Comparatively, unit trusts are actively managed, where the fund manager seeks to outperform the index instead of just replicating its performance. Because of its passive nature, ETFs charge lower management fees thus lowering cost for investors.

As an investor, how do I buy or sell units of this ETF ?

There are two main methods to which ETF units can be transact;

1) apply for creation or redemption of units from the primary market through an approved Participating Dealer, or

2) buy or sell the units from the secondary market through the Singapore Exchange (SGX-ST) when the units are listed.

The Initial Offer Period will open at 9.00 a.m. on 1st October 2018 and close at 11:00 a.m. on 19th October 2018. The Issue Price of each Unit during the Initial Offer Period is S$1.000. During the Initial Offer Period, investors may only purchase units through the Participating Dealers in application unit size of 50,000 units or such higher number of units in multiples of 1,000 units. All purchases or sales of units through the Participating Dealers are subject to such terms and conditions as may be imposed by the relevant Participating Dealer. The Participating Dealers may set a lower minimum amount for retail investors.

Participating Dealer for this ETF:

  • Phillip Securities Pte Ltd

Which regions does this ETF focus ?

This ETF focuses on listed companies in the REIT sector in APAC ex-Japan markets. Regions from the following regions are eligible for inclusion:

  1. Australia
  2. China
  3. Hong Kong
  4. India
  5. Indonesia
  6. Thailand
  7. Philippines
  8. Singapore
  9. South Korea
  10. Taiwan

What are the trading currencies of this ETF ?

The ETF trading currencies are USD and SGD.

What makes up total expenses for the ETF ?

Apart from management fees of the current 0.30% p.a. (maximum 0.80% p.a.), there are other fees such as index licensing, trustee and auditor fees, etc. Based on figures in the Fund’s latest audited
accounts) for the financial period ended 30 September 2019 is 1.18%.

Is this ETF classified as an Excluded Investment Product (EIP) ?

Yes. It is classified as an EIP and investor can invest like the ordinary stocks without having the need to complete a Customer Account Review (CAR) or SGX online Education Programme.

Can investors invest into this ETF via the Supplementary Retirement Scheme (“SRS”) ?

Yes, investors can apply with their stockbrokers or SRS operator to invest via SRS.

Is the Fund included under the CPF Investment Scheme (“CPFIS”) ?

No, the Fund is currently not included under the CPFIS.

What is the distribution policy of the ETF ?

The Manager will endeavour to declare semi-annual distributions in June and December each year in respect of the Fund. Distributions, if any, will be payable within two months after the end of each semi-annual period of each year. However, investors should note that such distribution is not guaranteed and is subject to all times to the discretion of the Manager. There is currently no dividend reinvestment service.

What are the tax implications for investing in this ETF ?

As the ETF is domiciled in Singapore, tax exemptions will apply to distributions and capital gains received by individual unitholders.

For the underlying constituents in the index, taxable income from REITs are currently subject to dividend withholding tax of 17 per cent at the ETF level. Distributions made by the ETF to all investors will not attract Singapore withholding tax.

If any of the ETF’s underlying stocks get suspended, how will this affect the ETF’s performance and what would be the manager’s response ?

Certain actions or corporate events (e.g. mergers and acquisitions, voluntary administration) may cause a stock to be suspended for a period while residing within an equity index. The Index Provider will keep suspended stocks within the Index for up to one calendar month from the date of suspension. Typically, stocks are removed from the Index if they do not resume trading within one calendar month from the suspension of trade. The impact of stock suspensions on the index performance may vary, depending on circumstances. The Fund Manager will still seek to track the investment results of the Index, and will not seek temporary aggressive or defensive positions that are reflective of market appearance.

How does the ETF Manager handle corporate actions such as rights issues ?

The Manager takes into account some factors to make informed decisions about the most efficient way to manage corporate actions (such as mergers and acquisitions, rights issues, spin-offs, stock splits or the receipt of interest/dividends). Corporate actions may generate trading costs or other implicit costs related to the corporate activity in the underlying investment.

To give a couple of examples:

  1. Dividends paid by the underlying stocks of the ETF are reinvested by the Manager, as keeping them in the portfolio would create a cash drag on the fund performance.

  2. A rights issue is an offer to existing holders of securities where they are given the right to subscribe for additional new securities at a given subscription price. Where the subscription price is lower than the prevailing market price, the Manager will accept the rights in full and may have to sell existing shares in the portfolio to do so, depending on the capacity of the ETF. The Manager will base its decisions on a range of factors such as fund costs and the risk-return profile of the portfolio (so that it remains within reasonable limits compared to the underlying Index).

Regarding the Index, the treatment of all corporate actions, corporate events, and general events are fully described in the Morningstar Indexes Corporate Actions Methodology. The document acts as a reference point for index stakeholders that are required to make adjustments as a result of corporate activity that could affect the underlying composition of an equity index.

We have seen on screen where the trading volume of some ETFs tend to be low, does it mean not active ?

ETFs have three levels of liquidity across the primary and secondary markets. On-screen volume (Average Daily Trading Volume) reflects only the volume of trades executed in the secondary market exchanges on which the ETFs trade. Large sum transactions mostly traded off exchanges i.e. over-the –counter (OTC). Most of the liquidity from the underlying securities does reflect the ETF’s liquidity as well

 

  • Visible liquidity on the stock exchange e.g. on-screen Average Daily Trading Volume (ADV) and bid/offer data
  • Most effective and low cost execution opportunity
  • Inventory held by market makers provide additional liquidity
  • A Huge determinant of ETF liquidity
  • Traded through authorised participants (Aps) via the creation/redemption process

Source: Commerzbank, PCM

What are the trading name and stock identifiers of the ETF ?

SGX Trading Name PHIL SING INC
SGX Stock Code OVQ
Bloomberg Ticker SINGINC SP
ISIN Code SGXC25065050

Product Summary

Investment Objective to provide a high level of income and moderate long-term capital appreciation by tracking, as closely as possible, before expenses, the performance of the iEdge APAC Ex-Japan Dividend Leaders REIT Index.
Benchmark Index iEdge APAC Ex-Japan Dividend Leaders REIT Index
Index Methodology The iEdge APAC ex-Japan Dividend Leaders REIT Index screens for top 30 REITs in the Index Universe by total dividends paid in the preceding 12 months, subject to size, free-float market capitalisation and liquidity constraints.
Eligible Countries Singapore
Exchange Listing SGX
ETF Replication Method Physical replication or representative sampling
Dividend Distribution Semi-Annual
Management Fee Management Fee 0.30% p.a. Maximum cap at 0.80% p.a.
Manager Phillip Capital Management (S) Ltd
Designated Market Makers Phillip Securities Pte Ltd and Societe Generale
Participating Dealer Phillip Securities Pte Ltd,  Flow Traders Asia Pte Ltd
Fund Administrator DBS Bank Limited
Custodian The Hongkong and Shanghai Banking Corporation Limited

How to Subscribe

As this is an Exchange Traded Fund, existing units can be traded easily like normal stock at Singapore Exchange over lots of 100 units. Normal stock trading procedure can be followed to buy and sell units. No sales charges apply. However, respective brokerage charges may apply.

To subscribe to new units, the following participating dealers can be contacted:

 

Phillip Securities Pte Ltd

Phone: +65 65311555

Website: https://www.poems.com.sg/pcm-etf/