Monday, October 10, 2016

Read This before Invest in Phillip REITs ETF IPO


Many of our friends is asking How can they Subscribe the Phillip Reits ETF IPO - the full name is actually "Phillip SGX APAC ex-Japan REIT ETF"
(IPO = Initial Public Offering)

Whats the Benefit of this ETF, why not i just buy reits off the market?
- Yes, you can buy individual reits off the market, however sometimes if you want to have a diversified portfolio by have more Reits in your portfolio. This ETF consist of 30 Reits, which means by buying 1 ETF counter, you are owning 30 different reits. This means lower cost for you, instead of paying commission for purchasing 30 reits, now you just pay 1 time.

Quality REITs in Asia EX Japan
The ETF will weight and rebalance its investment basket based on the dividend payment of the REITs, ensuring only the top quality and highest dividend paying REITs are invested in, and poor performers weeded out. You can be assured of exposure to a diversified group of top 30 APAC ex-Japan REITs paying sustainable dividends.
Liquidity and Transparency
Being an ETF, the units can be traded in the exchange, which allows a higher level of liquidity compared to traditional unit trusts. The whole constituent list is also easily accessible allowing transparency.
Low Cost
As a passively managed fund, the annual management fee is only 0.50%. There are no sales charges applicable. (Brokerage charges may apply) 
Reputable Index Provider

SGX Index Edge, one of the reliable index providers in Asia manages the index. 
How often will i get Dividend
- Semi-Annually

How much is the Dividend Yield?
The fund target a gross Yield of 5.07%pa

1)      Able to use CPF or SRS to subscribe for this IPO?
Ans: NO.

2)      Are investors able to use ATMs to subcribe?
Ans: NO.

3)      Are investors able to EPS to cash trading account?
Ans: YES.

4)      Must the investors pass CAR/CKA for this ETF?
Ans: NO. This ETF is an Excluded Investment Product (EIP)

5)      What is the minimum number of shares to subscribe?
Ans: 1000 shares 

6)      Is there placement fee or commission?
Ans: NO.  Investors just pay the full amount of what he/she wants

7)      Then how I calculate the amount for the investor to transfer the funds?
Ans: 1000 x US$ 1.10 (max price) x 1.40 (indicative exchange rate) = SGD $ 1,540

8)      Can investors deduct existing USD$ from his/her KC/margin/custodian/financing accounts?

Ans: YES. 1000 x US$ 1.10 (max price) = USD$ 1,100.

Key Highlights from Fund Info Sheet
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
Membership
 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

Phillip SGX APAC ex-Japan REIT ETF has lodged its IPO preliminary prospectus with the Monetary Authority of Singapore (“MAS”) in conjunction with its plans to list its Units on SGX-ST Mainboard. Kindly be informed that we are offering the USD tranche only during this IPO offering period.

INFORMATION ON THE IPO:

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  SGX  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 provide  investors  with  risk-adjusted  returns  that  are  superior  to 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.

Where to see the Prospectus?
Here is the link to download for the REITS ETF prospectus and product highlight sheet on MAS website
https://opera.mas.gov.sg/ExtPortal/Public/CIS/ViewSchemeDetail.aspx?schemeID=f2cbe5ff13324236b80f2c6128b919ab

During the initial offer period (05 October to 13 October 2016), you can place your orders by contacting your trading representatives.
Or you can call the following numbers of our participating dealers to help you in placing your order
Tel: 68121560
Feel free to Email us for more question!

INDICATIVE TIMETABLE:

Roadshow / Bookbuilding :            6th Oct to 13th  Oct
MAS registration :                           31st Aug 2016
Public Offer :                                    6th Oct 2016
Listing  on SGX mainboard          20th Oct 2016

INDICATIVE OFFERING PRICE RANGE:  USD0.88-USD1.10 per unit

Component/ Constituent Weightings of the Index 

As at 29 September 2016, the constituent REITs of the SGX APAC Ex-Japan Dividend Leaders REIT Index are:- 

Source: SGX Index Edge
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