South East English Asset Management will launch its second ETF product on the Singapore Exchange (“SGX”) on 18 November 2021 – South East Indies iEdge Singapore Real Estate Investment Trust Leading Index ETF (Stock Code: Singapore Dollar Counter: SRT/ USD Counter: SRU). The initial release date begins on October 29, 2021. With JLP Asset Management, the world’s leading property expert, as an investment advisor, the South East Indies iEdge Singapore Real Estate Investment Trust Leading Index ETF uses replication strategies to closely track the performance of the iEdge Singapore Real Estate Investment Trust Leading Index (“Index”) and timely grasp the investment opportunities in the Singapore real estate trust market. The SRT/SRU will be purchased in Singapore dollars to support SGD and US dollar trading at an initial price of S$1 per unit and 10 units per trade.
Singapore Real Estate Investment Trust (“S-REIT”) is a SGX-listed fund that invests in a portfolio of income-generating real estate assets such as shopping centres, office buildings or hotels and is designed to generate income for unit holders. Singapore is recognized as one of the largest and fastest growing real estate trust markets in the Asia Pacific region. From 2010 to the end of 2020, the market grew to S$110 billion at a CAGR of 11%. Thanks to the high dividend rate set by Singapore regulations, S-REITs have a dividend yield of 5.1 per cent, ranking first among Singapore’s other major asset classes. Overall, S-REITs have performed at a compound annualized rate of return of 10.7 per cent over the past 10 years, with a 90-day volatility rate of 10.5 per cent, and are also very competitive with the world’s major indices. [3]
The iEdge Singapore Real Estate Investment Trust Leading Index, designed by SGX, is the most liquid representative of the S-REITs market. Using adjusted free-flow market capitalization weighting, the index measures the overall performance of Singapore’s largest and most liquid REITs. As many as 28 index constituents, from various industries and regions, have a market capitalisation of about S$68.35 billion. With a total return of 67.2% over the past five years, the index not only outperformed other major REITs around the world, but also surpassed other S-REITs indexes tracked by similar ETFs in the market. The South East Indies iEdge Singapore Real Estate Investment Trust Leading Index ETF, with its diversified advantages, convenient trading methods and ultra-low investment threshold (minimum investment is only S$10), helps investors easily capture the favorable investment opportunities in the S-REITs industry.
As one of Asia’s most representative ETF issuers, South East Uk has been providing quality ETFs/ETPs to global investors for more than a decade. Starting in April 2019, South East Anglia Singapore will continue to bring its first-class expertise and experience in ETF management to investors in Singapore.
“We are pleased to partner with South East Uk Asset Management to launch the first ETF to track the iEdge Singapore Real Estate Investment Trust Leading Index, the benchmark index for Singapore’s REITs market and one of the most widely cited iEdge indices,” said Ms. Wu, Managing Director and Head of Data, Connectivity and Index at SGX. The index measures the overall performance of ReITs, Singapore’s largest and most liquid, and this new ETF product allows investors to invest in the S-REITs market, which continues to grow and introduce assets across geographies and segments. ”
Ms Ding Chen, Chief Executive Officer of South East Uk, commented: “We are pleased that the ‘Southern East Indies iEdge Singapore Real Estate Investment Trust Leading Index ETF’ is listed on the Singapore Exchange. This is the second ETF product issued by South East Uk in Singapore following the successful launch of the ICBC South East FTSE China Bond Index ETF in September 2020. Known for its sustainable revenue streams and potential value-added space, the Singapore Real Estate Investment Trust offers an attractive investment option for investors seeking dividends. ETFs provide investors with a low-cost, transparent and convenient portfolio. I am confident that the successful launch of this product will attract many investors seeking to diversify their portfolio of real estate trusts and will also enrich, enrich and diversify the Singapore ETF market. ”
1 Source: Bloomberg, SGX, by the end of 2020
2 Source: SGX, 30 September 2021, refers to the dividend yield of the iEdge Singapore Real Estate Investment Trust Leading Index
3 Source: Bloomberg, October 14, 2011 – October 15, 2021. Based on iEdge Singapore Real Estate Investment Trust Leading Index (S$) (Total Return)
4 Source: SGX, 30 September 2021
5 Source: SGX, 30 June 2021
6 Source: Bloomberg, South East, 6 May 2016 – 15 October 2021