CSOP Asset Management will list its second Exchange-Traded Fund (“ETF”) on SGX – CSOP iEdge S-REIT Leaders Index ETF (Stock Code: SGD counter: SRT/ USD counter: SRU) on 18 November 2021 and the initial offering period has already started on 29 October 2021. Advised by JLP Asset Management Asia Pte. Ltd., a leading investment manager in global real estate, SRT/SRU will adopt a replication strategy to track the performance of the iEdge S-REIT Leaders Index (the “Index”) to present the investment opportunities of the S-REITs market. The SRT/SRU will be available for initial investment in SGD and trading in both SGD and USD at an inception price of SGD 1 with board lot size of 10 units.
A real estate investment trust in Singapore (“S-REIT”) is a fund on SGX that invests in a portfolio of income generating real estate assets such as shopping malls, offices or hotels, usually with a view to generating income for unit holders of the fund. Singapore is renowned as one of the largest and most fast-growing REITs markets in Asia Pacific with market size of over SGD 110 billion and has grown at CAGR of 11% from 2010 to the end of 2020.1 Thanks to the high payout ratio specified by Singapore’s regulation, S-REITs offer the highest dividend yield of 5.1% compared with other major asset classes in Singapore.2 In terms of performance, over the last 10 years, S-REITs have averaged an annualized total return of 10.7% and 90-day volatility of 10.5%, which is competitive among major equity indexes.3
Delicately designed by SGX, the Index is the most liquid representation of the S-REITs market in Singapore.4 It is an adjusted free-float market capitalization weighted index that measures the performance of the largest and most tradable REITs in Singapore. Comprehensively consisting of 28 constituents from various industries and regions, it has a total market capitalization of about SGD 68.35 billion.5 The Index has gained 67.2% on a total return basis over the past 5 years, outperforming not only the major global REITs indices but also other S-REITs indices tracked by existing S-REIT ETFs akin.6 Tracking the Index, CSOP iEdge S-REIT Leaders Index ETF will enable investors to capture the opportunities of the lucrative S-REITs sector with great diversification and easy tradability at minimal investment of only SGD 10.
As one of the most representative ETF providers in Asia, CSOP has been dedicated to providing ETFs and Exchange-Traded Products (“ETPs”) to global investors for nearly a decade. Operating since April 2019, CSOP Asset Management Pte. Ltd. (“CSOP SG”) keeps bringing its leading expertise and experience in ETF management to investors in Singapore.
Ng Kin Yee, Managing Director and Head of Data, Connectivity and Indices, SGX, says, “We are delighted to partner CSOP Asset Management as it brings to market the first ETF tracking the iEdge S-REIT Leaders Index – the benchmark index for Singapore’s REITs market and one of the most widely referenced iEdge indices. The index measures the performance of the largest and most liquid REITs listed in Singapore; with this new ETF, investors can have easy, efficient and diversified access to the S-REITs market that continues to grow and attract assets across geographies and segments.”
Ms. Ding Chen, CEO of CSOP Asset Management comments “We are pleased to list the ‘CSOP iEdge S-REIT Leaders Index ETF’ on the Singapore Exchange. Following the successful launch of the ‘ICBC CSOP FTSE Chinese Government Bond Index ETF’ in September 2020, this is the second ETF product issued by CSOP in Singapore. Singapore REITs is well known for its sustainable income stream and potential capital appreciation, therefore offering an attractive proposition for yield seeking investors. The ETF provides investors with a low cost, transparent and fuss-free portfolio. I believe the successful listing of the product will appeal to investors seeking for a diversified REITs portfolio, and be a good addition to Singapore’s ETF market.”
1 Source: Bloomberg, SGX, as end of 2020
2 Source: SGX, as of 30 September 2021. Refers to dividend yield of iEdge S-REIT Leaders Index.
3 Source: Bloomberg, 14 October 2011 – 15 October 2021. Proxied by iEdge S-REIT Leaders SGD Index (Total Return)
4 Source: SGX, as of 30 September 2021
5 Source: SGX, as of 30 June 2021
6 Source: Bloomberg, CSOP, 6 May 2016 – 15 October 2021