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Lion-Phillip S-Reit ETF debuts with initial AUM of S$100m

THE first exchange-traded fund (ETF) to track a basket comprising solely of Singapore-listed real estate investment trusts (S-Reits) garnered an initial assets under management (AUM) of more than S$100 million, its issuers said on Monday.

The Lion-Phillip S-Reit ETF, launched jointly by Lion Global Investors and Phillip Capital Management, made its debut on the Singapore Exchange (SGX) on Monday.

"The investor response to the Lion-Phillip S-Reit ETF has been very encouraging," Lion Global chief executive Gerard Lee said in a statement. "The assets under management by the end of the initial offer period of more than S$100 million had far exceeded our initial target of between S$40 million and S$50 million, even though we were confident of the healthy demand that the fund would generate."

The fund is the first ETF listing by Lion Global Investors, and the second for Phillip Capital, which launched its first ETF product on SGX in 2016.

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The S-Reit ETF replicated the performance of the Morningstar Singapore Reit Yield Focus Index, which is designed to screen for high-yielding Reits using a proprietary three-factor rules-based investment methodology.

Jeffrey Lee, managing director and chief investment officer at Phillip Capital Management, said that this new ETF appeals to investors who wish to participate in the growth story of Singapore Reits through a diversified portfolio of quality Singapore Reits in a low-cost, transparent and fuss-free manner.