Lion Phillip SREIT ETF will be the first Singapore SREIT ETF which consists of all 23 S-REITs in Singapore. This ETF was recently launched by both Lion Global Investors Limited and Phillip Capital Management (S) Ltd. The unit fee will be $1.00 per unit and it will be listed in the SGX Mainboard on 30 October 2017. Projected dividend will be 5.75% to be distributed half annually in Feburary and August.
Key Highlights of Lion Phillip SREIT ETF
- Regular Income (semi-annual distribution) and potential capital growth as well as for Portfolio diversification
- Application Period: 2 Oct 2017 – 17 Oct 2017
- Listing Date: 30 Oct 2017
- Subscription price: S$1.00
- Minimum Quantity: 1,000 units
- Commission Fees: 0.1% or minimum S$10
- Allotment: Full allotment
- Trading Currency: Singapore dollars (S$)
- Dividend Yield: 5.75%, based on trailing 12-month dividend yield of the Morningstar® Singapore REIT Yield Focus IndexSM
- Dividend Distribution: Semi-annually
- Management Fees: 0.5% per annum
- Investment Product Type: EIP (Client do not need to pass CAR/CKA)
- Instrument Type: Exchange Traded Fund (“ETF”)
- Tracked Index: Morningstar® Singapore REIT Yield Focus IndexSM
- Exchange Listing: SGX-ST
Where can you initially subscribe Lion Phillip SREIT ETF from?
- Phillip Securities Pte Ltd
- DBS Vickers Securities (Singapore) Pte Ltd
- Commerzbank AG
- UOB Kay Hian Pte Ltd
Here are the 23 constituent REITs of the Morningstar® Singapore REIT Yield Focus IndexSM:-
No Index Security Country Weighting (%)
1 CapitaLand Mall Trust Singapore 10.76%
2 CapitaLand Commercial Trust Singapore 10.25%
3 Suntec REIT Singapore 9.89%
4 Mapletree Commercial Trust Singapore 8.98%
5 Keppel REIT Singapore 8.54%
6 Ascendas REIT Singapore 8.02%
7 Mapletree Industrial Trust Singapore 7.64%
8 Mapletree Logistics Trust Singapore 5.52%
9 Ascott Residence Trust Singapore 4.54%
10 Mapletree Greater China Commercial Trust Singapore 3.55%
11 CDL Hospitality Trusts Singapore 3.50%
12 Starhill Global REIT Singapore 3.44%
13 Frasers Commercial Trust Singapore 2.35%
14 Parkway Life REIT Singapore 2.34%
15 Frasers Centrepoint Trust Singapore 1.97%
16 Keppel DC REIT Singapore 1.71%
17 OUE Hospitality Trust Singapore 1.42%
18 CapitaLand Retail China Trust Singapore 1.26%
19 Lippo Malls Indonesia Retail Trust Singapore 1.12%
20 Frasers Logistics & Industrial Trust Singapore 0.88%
21 First REIT Singapore 0.86%
22 Far East Hospitality Trust Singapore 0.76%
23 Frasers Hospitality Trust Singapore 0.70%
Source: Morningstar Research Pte. Ltd.
Comparison Between Lion Phillip SREIT ETF and PHILLIP SGX APAC DIVIDEND LEADERS REIT ETF
- Risk Explosure
I have invested PHILLIP SGX APAC DIVIDEND LEADERS REIT ETF using Cash and SRS. This REIT ETF consists of REIT exposure from Australia, Hongkong and Singapore with heavier emphasis in Aussie REIT market. I see Australia market being quite resilient because it had performed well in the last global financial crisis. This is to buffer any possible risks on local property market and diverting the risk of my long term REIT investments in Lippo Mall REIT and Suntec REIT.
- Management Fee
Phillip SGX APAC Dividend Leaders REIT ETF has a lower annual management fee of 0.3% as compared to 0.5% for the case of Lion Phillip SREIT ETF.
- Dividend Yield
In terms of dividend yield, Phillip SGX APAC Dividend Leaders REIT ETF has a lower dividend yield at 4.2% as compared to 4.8% net dividend yield of Lion Phillip SREIT ETF (after 17% corporate tax).
But if you are a firm believer in Singapore property market and keen to invest in REITs for regular savings, this Lion Phillip SREIT ETF may be one of your choices to spread your investment risks. Do your own due diligence please.
In one of my earlier ETF posts, i mentioned that it may be good to stay aside to invest in STI ETF at this time. However, I plan to nibble a bit of this S-REIT ETF for my children using their own savings. This meets one of my goals to buy some lots for my elder son before he turns 11 this Christmas. Then, I will say to him that he can be the future Warren Buffett of Singapore too! Why? He has “started” his first value investing with this Lion Phillip SREIT ETF before the age of 11. Just like young Warren Buffett did. haha ..