It's time to accumulate Lion-OCBC Sec HSTECH SGD (SGX: HST)?

If you do not know which Hong Kong Tech Stock to choose, you may consider this ETF which is listed in SGX trading in SGD currency:

The Hang Seng TECH Index (“HSTECH”) represents the 30 largest technology companies listed in Hong Kong that have high business exposure to technology themes (Cloud, Digital, E-commerce, Fintech or internet) and are considered innovative by operating a technology-enabled business, with strong R&D investment and/or high revenue growth. The Index is free float and market capitalization weighted with a 8% cap on individual constituent weighting.

The investment objective of the ETF is to replicate as closely as possible, before expenses, the performance of the Hang Seng TECH Index using a direct investment policy of investing in all, or substantially all, of the underlying Index Securities. 

The Index is compiled and calculated by Hang Seng Indexes Company Limited and is designed to represent the 30 largest technology companies listed in Hong Kong which have high business exposure to technology themes.

30 STOCKS, EACH CAPPED AT 8%:

Click for more detail information

ChinaAMC CSI 300 Index ETF (3188.HK) 华夏沪深300指数ETF

 

• The Fund aims to provide investment result that closely corresponds to the performance of the CSI 300 Index (the "Index").

• The Fund (3188.HK) is not "actively managed ETF" and below is the list of Top 10 holdings.

• Click for details information

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

Download Fund Info Sheet here

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 :            6^th Oct to 13^th  Oct

MAS registration :                           31^st Aug 2016

Public Offer :                                    6^th Oct 2016

Listing  on SGX mainboard :          20^th 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

SRS account help you save 2015 tax if you contribute before 31 Dec and what to invest using your SRS saving!

Did you know that you could enjoy some tax advantages in this process? This article takes you through what the Supplementary Retirement Scheme (SRS) is about, and the tax benefits available if you choose to save for your retirement via this scheme.

What is the SRS?
It is a voluntary savings scheme introduced by the Government to encourage individuals like you to save more for retirement, above what you contribute to the Central Provident Fund (CPF).

Keys Benefits of participating in the SRS

·         Both you and your employer can contribute to your SRS account.

·         Contributions to SRS are eligible for tax relief if you are assessed as a tax resident.

·         You can invest the funds in your SRS account.

·         Investment gains are tax-free before withdrawal.

·         Only 50% of the withdrawals from SRS are taxable at retirement.

Is the SRS suitable for me?

The SRS is intended to help you save for your retirement. If you choose to withdraw your savings earlier than the statutory retirement age, you will have to pay tax on the full withdrawal and a penalty of 5%. Therefore, when considering whether to participate in the SRS, you should review your financial circumstances to ensure that you do not need to draw on your SRS savings until you reach the statutory retirement age.

How much tax savings can I have?

How do I participate in the SRS? 

You can open an SRS account in person at any branch of the Government-appointed SRS operators, as long as you are at least 18 years of age and not an un-discharged bankrupt or of unsound mind. Currently, the three SRS operators are DBS, OCBC and UOB. 

What can I invest my SRS savings in?

The SRS savings in your account can be invested in a variety of financial products, including those offered by financial institutions (product providers) other than your SRS operator. You should note however that the SRS scheme does not guarantee any specific rate of return on your investments. Your actual returns will depend entirely on the investment choices you make. Direct property investments are not allowed and certain life insurance products are subject to restrictions.

Example

Suppose you start contributing when you are 30 years old and save up to the contribution limit of $12,750 each year until you turn 62.

If you achieve a 5% annual rate of return through your investment choices, your savings could grow to $860,000 in your SRS account by the time you turn 62. However, if the performance of your investment is not favourable, you may incur losses.

In comparison, if you had kept your money in a savings account that offers an interest rate of 0.5% per annum, you would have accumulated about $400,000.

When to Contribute?

You and your employer may contribute to SRS at any time of the year and as often as you wish, subject to the maximum SRS contribution for the year. To be eligible for the tax relief, all contributions whether in cash or by cheque deposits must be made or cleared by 31 Dec of the year, or as specified by your SRS operator.

The maximum SRS contribution for a Singaporean/Singapore permanent resident and foreigner are $12,750 and $29,750 respectively in the year 2013.

Resource: Moneysense & iras.gov.sg

Things you need to do before 31 Dec 2015

Step 1: Check your eligibility

Step 2: Open an SRS account with any local banks DBS, OCBC, or UOB

Step 3: Deposit funds into your SRS account before 31 Dec 2014 to enjoy tax benefits for year 2014

Step 4: Inform us to Link your SRS account with your POEMS trading account 

Step 5: Invest your SRS saving in Dividend stocks, ETFs & Unit Trusts via POEMS trading account (DIY)

Previous post related to Dividend stock
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Fed Rate Outlook Dominate Recent ETF Activity - China & India

• Gold held its ranking as the most active or second-most active ETF in the month of November. Prices are holding at five-year lows as stronger-than-expected US economic data spur investors to weigh the prospect of a Federal Reserve interest rate hike next month.
• China remains in the spotlight, accounting for four of the 10 most active ETFs, as well as one of the best performers in terms of month-to-date total returns. Authorities have recently relaxed some emergency measures imposed during a major equities market rout earlier this year, while the impending entry of the yuan into the IMF’s SDR basket, and the MSCI’s inclusion of 14 US-listed Chinese companies in its indices effective 1 December, will keep investor interest high.
• Concerns in India also remain elevated. The domestic equity market is headed for its worst monthly performance since August, led by foreign selling, after the defeat of Prime Minister Narendra Modi’s party in state elections in Bihar raised concerns about his ability to push through policies to boost the economy.
• In the November 2015 month-to-date, the 10 most active ETFs were iShares MSCI India Index ETF, SPDR® Gold Shares, SPDR® Straits Times Index ETF, db x-trackers FTSE Vietnam UCITS ETF, db x-trackers MSCI Indonesia Index UCITS ETF, Lyxor ETF China Enterprise (HSCEI), db x-trackers FTSE China 50 UCITS ETF (DR), db x-trackers MSCI China Index UCITS ETF (DR), iShares JP Morgan USD Asia Credit Bond Index ETF and db x-trackers CSI 300 UCITS ETF.

Gold remains the most active or second-most active ETF in the month of November. Prices are holding at five-year lows as stronger-than-expected US economic data spur investors to weigh the prospect of a Federal Reserve interest rate hike next month. Demand for gold as a store of value diminishes in a rising interest-rate environment.

While business equipment orders in the US rose more than anticipated in October, and jobless claims fell to their lowest in a month, fourth-quarter GDP growth may still come in slightly weaker than some economists expect. Over the next week, markets are likely to focus on manufacturing data due 1 December, initial jobless claims on 3 December, and non-farm payrolls a day later, for clues on the outcome of Fed meeting on 16 December.

Futures markets now indicate a 72% chance of the US central bank raising rates at its December meeting, up from a 50% probability at the end of October, according to data tracked by Bloomberg.

Meanwhile, key emerging markets – China and India – continue to dominate ETF activity.

China stocks reversed a two-day gain, after investor optimism over the government’s easing of some trading restrictions faded, and doubts over the sustainability of the market’s rebound took centre stage. Authorities this month relaxed some emergency measures imposed during a rout that wiped out US$5 trillion from the equities market earlier this year, including resuming initial public offerings and scrapping a rule requiring brokers to hold daily net-long positions.

The impending entry of the Chinese yuan into the International Monetary Fund’s (IMF) Special Drawing Rights (SDR) basket will also keep the country in the limelight, while the government continues to fine-tune monetary policy to shore up economic growth that remains muted, despite six interest rate cuts in a year.

Also adding to interest in Chinese equities is MSCI’s inclusion of 14 US-listed Chinese companies into its indices effective 1 December, mostly from the new economy sector.

Over in India, the domestic equity market is set for its worst monthly performance since August, led by foreign selling. Political opposition to Modi escalated after his Bharatiya Janata Party lost state elections in Bihar earlier this month, raising concerns over his ability to push through reforms to boost the economy.

Nonetheless, Indian stocks rebounded today – their first advance this week – on hopes Modi may be able to get the crucial goods-and-services tax bill passed in the parliament session starting Thursday. The GST bill became a key marker for progress after it was repeatedly blocked by opponents.

The other most active ETFs in the past week also include stock indices that track the developing markets of Southeast Asia, in particular, Indonesia and Vietnam.

Singapore’s 10 most active Exchange Traded Funds (ETFs) in the November 2015 month-to-date were iShares MSCI India Index ETF, SPDR® Gold Shares, SPDR® Straits Times Index ETF, db x-trackers FTSE Vietnam UCITS ETF, db x-trackers MSCI Indonesia Index UCITS ETF, Lyxor ETF China Enterprise (HSCEI), db x-trackers FTSE China 50 UCITS ETF (DR), db x-trackers MSCI China Index UCITS ETF (DR), iShares J.P. Morgan USD Asia Credit Bond Index ETF and db x-trackers CSI 300 UCITS ETF.

In the month thus far, these 10 most active ETFs averaged a 1.5% decline in total return, taking the one-year and three-year total returns to negative 6.1% and 5.6% respectively. The three best performers in terms of month-to-date total returns were db x-trackers CSI 300 UCITS ETF, db x-trackers MSCI Indonesia Index UCITS ETF and iShares J.P. Morgan USD Asia Credit Bond Index ETF.

The above-mentioned ETFs saw a combined turnover of S$99.7 million in the month thus far, which brought the total 12-month turnover to S$2.0 billion.

The three most active ETFs over the first 19 sessions of November were iShares MSCI India Index ETF, SPDR® Gold Shares and SPDR® Straits Times Index ETF.

The 10 most active ETFs in the November 2015 month-to-date are detailed below and sorted by MTD turnover

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.

Source: My Gateway

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Hong Kong-Shenzhen stock connect, You must know which ETFs will be benefited before they are linked ?

The share prices of mainland brokering houses surged recently due to the (HongKong-ShenZhen) HKSZ linkage news.

哪一只ETF可能将受益于香港 - 深圳连接？

In ETF perspective, we list down the following 3 ETFs which could potentially benefit from the connect - for your consideration.

我们列出了下列3只ETF供大家参考, 这3只ETF有可能受益于香港 - 深圳连接。

ETF Name: CSOP SZSE ChiNext ETF

Exchange: Hong Kong

Code/Symbol: 3147 

Underlying index: ShenZhen ChiNext Index

Current price: HKD12.58

ChiNext market provides an important platform for implementing the national strategy of independent innovation. It helps accelerate the transformation of economic development mode and galvanizes growth in emerging industries of strategic importance. 

In August 1999, the CPC Central Committee and the State Council proposed the establishment of a hi-tech board. In August 2000, with the approval of the State Council, the CSRC decided that SZSE took on the task of preparing for second board. After ten years of exploration, China’s second board market---ChiNext was inaugurated in Shenzhen on 23 October, 2009. As of 30 December, 2011, there were 281 companies listed on the ChiNext, of which 93% are hi-tech firms. The total market capitalization of ChiNext listed companies reached RMB 743.4 billion (USD 118 billion). IPO proceeds hit RMB 196.1 billion (USD 31.1 billion). Total trading value of ChiNext was RMB 1.9 trillion (USD 301.6 billion) in 2011.

In the past two years, ChiNext market has seen smooth operation and exhibited distinctive sectoral features. A group of innovative enterprises successfully raised funds through the capital market. Their exemplary and spillover effects have led to creation of a national SME support system. ChiNext Market promoted allocation of social funds to innovative businesses and emerging industries.

ETF Name: Market Vectors ChinaAMC SME-ChiNext ETF

Exchange: US

Code/Symbol: CNXT 

Underlying index: SME-ChiNext 100 Index

Current price: USD43.33

Tracks the performance of the 100 largest and most liquid China A-share stocks listed and trading on the Small and Medium Enterprise ("SME") Board and the ChiNext Board of the Shenzhen Stock Exchange.

ETF Name: ChinaAMC Hang Seng SmallCap Index ETF (New ETF)

Exchange: Hong Kong

Code/Symbol: 3157 

Underlying index: Hang Seng Composite SmallCap Index

Current price: HKD24.05

The Index covers small cap stocks with market capitalisation rank below 95th percentile of the market capitalisation of the Hang Seng Composite Index, which strives to cover the top 95th percentile of the total market capitalisation of the Hong Kong Stock Exchange.

(Southbound beneficiary: Hang Seng Composite SmallCap Index may potentially be included in the anticipated Shenzhen-Hong Kong Stock Connect Scheme which may potentially attract inflows from mainland Chinese investors)

Join our upcoming event:

Is China Market Recover? (中国市场回覆了吗?)

16 Nov 2015, Mon （华语讲座）

19 Nov 2015, Thu (English)

Time: 7pm -10pm

Venue:
International Plaza, #34-07, 10 Anson Road, Singapore (079903)
Tanjong Pagar MRT, Exit C

Fee: Free Admission

Click here for Register

Speaker: Andy Yew

Top 10 Phillip CFD award

Interviewed by Channel 8

Invited speaker for SGX seminar

Regular guest speaker on Singapore Radio

Trainer for Share Investor Academy

Columnist for Shares Investment

Founder of ART Trading System

Investing Improving Europe Equity with ETF

(Reuters) - U.S. investors stung by the falling euro who want to stay invested in Europe are turning to exchange-traded funds designed to strip out the impact of the region's currency. The biggest among so-called "currency hedged" ETFs, the WisdomTree Europe Hedged Equity ETF, has already added some $576 million in new money since last Friday, and nearly $1 billion since the start of the year, ETF.com data show. "Currencies have become a huge part of global equity returns," said Art Laffer Jr., a Nashville investment manager who uses a currency hedged ETF for his exposure to Germany. A currency hedged ETF strips out the foreign currency return of a given fund by investing in foreign currency forward contracts and rolling them, typically on a monthly basis. This can have a major impact on returns for U.S. investors in a region like Europe, where the euro has dropped dramatically. (Read More…) Source: Reuters.com, Fri Jan 23, 2015 2:20pm EST

Performance: VGK vs. HEDJ

Let’s look at Jan 2015 as ECB launched QE in this period VGK = Vanguard FTSE Europe ETF – non-hedged (Blue Line) HEDJ = WisdomTree Europe Hedged Equity ETF – hedged (Red Line) Source: Stockcharts.com

Oil Investors Pour Most Money Into Funds in 4 Years !

Investors poured the most money in more than four years into funds that track crude oil on speculation prices will rebound from a five-year low. The four biggest oil exchange-traded products listed in the U.S. received a combined $1.23 billion in December, the most since May 2010, according to data compiled by Bloomberg. 

Another $109.9 million was added this month through Jan. 5. Investors are piling into oil ETFs even after West Texas Intermediate crude, the U.S. benchmark, tumbled the most since 2008 last year amid signs of rising supply and weak demand. Shares outstanding of the four funds surged to the highest since 2009. “Commodity investors can be contrarian investors,” said Matt Hougan, president of San Francisco-based research firm ETF.com. “There are a lot of true believers in the commodity space. 

A lot of people are attached to the idea that oil’s natural price should be $100, not $50.” The U.S. Oil Fund (DBO), the biggest oil ETF, attracted $629.9 million in December and $100.4 million so far this month. The fund, which follows WTI prices, dropped 3.9 percent to $18.05 yesterday on the New York Stock Exchange, a record low since its inception in 2006. The number of U.S. Oil Fund shares on loan to short sellers was 3.93 million on Jan. 5, down from as high as 9.53 million last month, data compiled by Markit and Bloomberg show. Source: Bloomberg, Jan 8, 2015 

Below Tables list Of Oil Related ETFs :

Equity (Energy Companies)

ETF Name Size in Million Energy Select Sector SPDR® ETF(XLE) 11895.94@31 Dec 2014 SPDR® S&P Oil & Gas Explor & Prodtn ETF(XOP) 985.81@31 Dec 2014 Market Vectors® Oil Services ETF(OIH) 929.83@31 Dec 2014 iShares US Oil&Gas Explor&Prodtn(IEO) 460.40@31 Dec 2014 iShares US Oil Equipment&Services(IEZ) 384.96@31 Dec 2014 SPDR® S&P Oil & Gas Equipment&Svcs ETF(XES) 184.82@31 Dec 2014 PowerShares Dynamic Oil & Gas Svcs ETF(PXJ) 65.70@31 Dec 2014 Market Vectors® Unconvnt Oil & Gas ETF(FRAK) 61.94@31 Dec 2014

Commodity (Futures)

ETF Name Size in Million Remark United States Oil ETF(USO) 1275.66@31 Dec 2014 ProShares Ultra Bloomberg Crude Oil(UCO) 446.02@31 Dec 2014 2 times leverage PowerShares DB Oil ETF(DBO) 279.25@31 Dec 2014 ProShares Ultra Oil & Gas(DIG) 144.38@31 Dec 2014 2 times leverage

MLPs (Normally with High Yield)

ETF Name Size in Million Indicative Div Yield % 1) Alerian MLP ETF(AMLP) 9175.58@31 Dec 2014 5.03 2) First Trust North Amer Engy InfrasETF(EMLP) 1040.68@31 Dec 2014 3.16 3) Yorkville High Income MLP ETF(YMLP) 239.63@31 Dec 2014 9.49 5) Global X MLP ETF(MLPA) 153.63@31 Dec 2014 3.13 6) Yorkville High Income Infras MLP ETF(YMLI) 58.79@31 Dec 2014 6.04 7) Direxion Zacks MLP High Income ETF(ZMLP) 46.42@31 Dec 2014 8.74 MLPs (Master Limited Partnership) were designed as a kind of investment pooling vehicle with a specific goal in mind: to pass the income earned in some form of partnership directly to investors. By law, they can only be used for businesses where 90% or more of the revenue is being generated from certain qualifying activities, such as managing natural gas pipelines or storing crude oil—industries that generate steady income streams, but that also require large investments in infrastructure that need to be depreciated over long periods of time. In short, an MLP combines the pass-through tax treatment of a traditional partnership with the public tradability of a stock, much like a real estate investment trust does for the ownership of property… (read more) Click here for more about ETFs

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