Singapore Exchange (SGX) today welcomed the listing of the UOB APAC Green REIT ETF, catering to investors’ demand for high-yielding real estate investment trusts (REIT) instruments and sustainable investing.
The ETF is benchmarked to the recently launched iEdge-UOB APAC Yield Focus Green REIT Index, which comprises 50 high-yielding REITs across the Asia-Pacific region, that meet environmental factor assessments by global ESG benchmark for real assets, GRESB.
Underpinned by Singapore’s position as the most international REIT hub globally with more S$110 billion in market capitalisation, the index was developed and launched by SGX in partnership with UOB Asset Management (UOBAM) last month.
With this latest addition, SGX now lists five REIT ETFs – one of the fastest-growing asset classes in Singapore’s ETF market – with total managed assets of more than S$780 million, representing an increase of close to 80% from a year ago.
Michael Syn, Head of Equities at SGX, said, “Investors want effective price benchmarks, but more importantly, highly liquid and investable instruments that are increasingly tied to standardised and validated ESG data. Together with UOBAM, we have jointly created an index and a yield investment tool that is aligned with positive environmental outcomes. SGX will continue to work with our partners to expand our product franchise to meet investors’ growing appetite for ETFs.”
Thio Boon Kiat, Chief Executive Officer, UOB Asset Management, said, “The UOB APAC Green REIT ETF gives investors an opportunity to participate in the development of sustainable real estate taking place across Asia Pacific so they can invest for profit and purpose. Backed by our three decades of investment experience in Asia, we believe we are helping investors buy into quality green REITs that will strengthen over time and also receive stable and regular income. We believe that there is no better time to be part of the green wave sweeping across the region’s real estate industry.”
