Lion Global Investors and Phillip Capital Management, two Singapore-based asset managers, have teamed up to launch the first ETF to focus entirely on Singapore real estate investment trusts (REITs). The Lion-Phillip S-REIT ETF will trade on the Singapore Exchange and track the Morningstar Singapore REIT Yield Focus Index.
The first-of-its-kind ETF gives exposure to 23 REITs listed in Singapore.
Commenting on the launch, Gerard Lee, CEO of Lion Global Investors, said: “There is a a compelling investment story for Singapore REITs, which have thrived on the back of government support and a robust regulatory framework. Investors who are looking to ride on the potential of Singapore REITs to seek a sustainable income stream and potential capital growth should consider the Lion-Phillip S-REIT ETF.
“It provides low-cost access to 23 high-quality S-REITs screened by Morningstar using a strategic beta investment process. We are happy to be collaborating with Phillip Capital Management and Morningstar to offer this new RTF to the investors.”
Designed to screen for high-yielding S-REITs, the index uses a proprietary three-factor rules-based investment methodology that emphasises business quality, financial health and dividend yield. It caps the maximum weight of any index security at 10% at each rebalance. The index features 23 REITs that own a wide array of real estate in Singapore and globally.
Jeffery Lee, managing director & CIO, Phillip Capital Management, added: “Phillip Capital Management is focused on bringing innovative products to investors. Singapore RIETs have been one of the success stories of the region. We believe the new ETF will appeal to investors who wish to participate in the growth story of Singapore REITs through a diversified portfolio of quality REITs in a low cost and fuss-free manner.
“We have been strong advocates of Singapore RIETs since 2002, and our investments in this sector have served our government pension, global institutional, and retail clients well. We are honoured to work with Lion Global Investors, and this collaboration marks a new era for two local management firms to introduce innovative products to serve better the investment needs of clients.”
The fund is physically replicated, pays dividends semi-annually, and has a management fee of 0.50%.