Bookmark & Share
The Singapore Exchange (SGX) listed its second Reit ETF on Wednesday (29 March), which is a combination of a real estate investment trust (Reit) and an exchange traded fund (ETF).
Known as the NikkoAM-StraitsTrading Asia Ex Japan Reit ETF, the financial instrument tracks FTSE’s EPRA/NAREIT Asia ex Japan Reits Net Total Return SGD index. About 70 percent of its weightage is on Singapore-listed Reits, while 30 percent is on Reits listed in Malaysia and Hong Kong.
The Reit ETF is a partnership between Nikko Asset Management (NikkoAM) and Straits Trading, with the former serving as its manager. It is also classified as an Excluded Investment Product (EIP), meaning it is accessible to all investors.
Eleanor Seet, President of NikkoAM in Singapore and Head of Asia ex-Japan, noted that they are pleased to launch the world’s first Asia ex-Japan Reit ETF. It is also their first ETF outside Japan.
Its basket of Reits covers various properties including malls, hotels, homes, tech hubs, hospitals, industrial properties and financial hubs across Asia, excluding Japan.
“We are delighted to welcome the listing of NikkoAM-StraitsTrading Asia Ex Japan Reit ETF,” said Chew Sutat, Head of Equities & Fixed Income at SGX.
“The listing reflects investor demand for Reit products, and offers investors diversification across geographical markets in Asia and high-growth Reit sub-sectors including financial and tech hubs, hospitality and healthcare, all in a single trade.”
Meanwhile, financial education blog The Fifth Person told The New Paper that a Reit ETF is a good choice for investors who wish to grow a steady stream of dividend income by investing in a basket of Reits, but do not have much time to do research.
The blog’s co-founder, Rusmin Ang, added that the advantage of the newly launched financial instrument is its larger exposure to S-Reits.
In comparison, Singapore-listed Reits only have a 30 percent weightage in the Phillip SGX APAC Dividend Leaders Reit ETF, the first of its kind listed on the SGX last October.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
Related Articles:
Shophouse off Serangoon Road up for sale