Singapore Exchange (SGX) today welcomed the listing of Lion-Phillip S-REIT ETF, jointly launched by Lion Global Investors Limited (“Lion Global Investors”), one of the largest asset management companies in Southeast Asia, and Phillip Capital Management (S) Ltd. (“Phillip Capital Management”), a home-grown Asian fund management company.
This marks the first ETF listing by Lion Global Investors, partnering with Phillip Capital, who launched its first ETF product on Singapore Exchange last year. The ETF garnered strong investor interest with an initial assets under management of over S$100m at the end of the subscription period, showcasing investor interest in this yield product’s diversified access to SGX-listed REITS.
This is the first ETF with a basket of purely Singapore-listed Real Estate Investment Trusts (“S-REITs”), providing investors with single-product access to high-quality S-REITs that offer a sustainable income stream and potential capital growth. The Lion-Phillip S-REIT ETF is a full replication of the performance of the Morningstar Singapore REIT Yield Focus Index, which is designed to screen for high-yielding REITS with superior quality, financial health and dividend yield, using a proprietary three-factor rules-based investment methodology.
Gerard Lee, Chief Executive Officer at Lion Global Investors, said, “The investor response to the Lion-Phillip S-REIT ETF has been very encouraging. The assets under management by the end of the initial offer period of more than S$100 million had far exceeded our initial target of between S$40 million and S$50 million, even though we were confident of the healthy demand that the fund would generate. This shows that investors are well-informed of the benefits of investing in Singapore REITs, which offer a sustainable income stream, potential capital appreciation and portfolio diversification, and that the ETF is a simple and effective way to do so. The Lion-Phillip S-REIT ETF is only part of Lion Global Investors’ strategic plans to introduce more innovative, niche products to the market.”
Jeffrey Lee, Managing Director and Chief Investment Officer at Phillip Capital Management, said, “We are honoured and humbled by the overwhelming response to the Lion-Phillip S-REIT ETF. We are fully committed and focused on bringing innovative products to serve the needs of our investors. Singapore REITs have been one of the most compelling investment themes in the Singapore stock market and the region. This new ETF appeals to investors who wish to participate in the growth story of Singapore REITs through a diversified portfolio of quality Singapore REITs in a low-cost, transparent and fuss-free manner. We have been strong advocates of Singapore REITs since its inception in 2002, and our focused investments in this sector have served our global institutional, government pension, and retail clients well.”
Chew Sutat, Head of Equities and Fixed Income, SGX, said, “We are delighted to welcome the listing of Lion-Phillip S-REIT ETF, the first S-REIT ETF and third REIT ETF to list on the Singapore Exchange, adding to our suite of sector-focused ETFs. As passive investments continue to gain traction in Asia, we look forward to more sectorial ETF listings offering single-investment access to various sectors, meeting the evolving needs of investors and further strengthening the tradability and liquidity of the underlying sector.”
SGX offers a diverse suite of 75 ETFs, offering exposure to various asset classes (equities, fixed income, commodities or money market) across different geographical markets. For more details on SGX-listed ETFs, please visit sgx.com/etf.
SGX Academy conducts regular ETF educational sessions, please visit sgx.com/academy for programme schedule and details.
