New ETF first to link to Singapore Reits

THE first exchange traded fund (ETF) dedicated to Singapore Real Estate Investment Trusts (S-Reits) is making its entrance here, with an aim to provide investors with low-cost access to high-quality S-Reits that offer a sustainable stream of income and potential capital growth.

The Lion-Phillip S-Reit ETF, which will be listed on the Singapore Exchange, was launched on Monday by asset management company Lion Global Investors Limited and home-grown Asian fund management company, Phillip Capital Management (S) Ltd.

The initial offer period opened at 9am on Oct 2 and will close at 11am on Oct 20.

The issue price of each unit during the initial offer period is S$1.

"Through the ETF, investors could also benefit from portfolio diversification as it invests in 23 S-Reits 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 two companies said in a joint press release.

The Lion-Phillip S-Reit ETF will replicate as closely as possible, before expenses, the performance of the Morningstar Singapore Reit Yield Focus IndexSM, using a direct investment approach that invests in all, or substantially all, of the underlying securities constituting the index.

The fund intends to declare dividends every February and August, and will conduct rebalancing semi-annually in June and December.