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.
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
