World first REIT ETF for Singapore Exchange

The World’s first ever Asia ex-Japan REIT Exchange Traded Fund (ETF) – The NikkoAM-StraitsTrading Asia ex-Japan REIT – has been listed on the Singapore Exchange (SGX) .

The ETF, the world’s first such fund, was issued in partnership between Nikko Asset Management (NikkoAM) and Straits Trading, and managed by NikkoAM.

This ETF is classified as an excluded investment product, making it accessible to all investors, the organisations said in a joint statement announcing the launch.

A REIT – or Real Estate Investment Trust – is a company that owns or finances income-producing real estate. Modelled on typical mutual funds, REITs provide investors of all types regular income streams and opportunities for diversification and long-term capital appreciation.

The NikkoAM-StraitsTrading Asia ex-Japan REIT tracks FTSE’s EPRA/NAREIT Asia ex-Japan Reits Net Total Return SGD index, with 70% weightage on Singapore-listed REITs and the remaining 30% weightage on REITs listed in Hong Kong and Malaysia.

The basket of REITs covers properties including financial hubs, tech hubs, hospitals, residential and industrial properties, malls and hotels located across Asia ex-Japan.

‘Collaboration’

Eleanor Seet, president of Nikko Asset Management in Singapore and head of Asia ex-Japan, said: “Our goal is to provide progressive solutions to the global investors we serve and this is our first ETF to be launched outside of Japan. With the strong collaboration with the Singapore Exchange, we anticipate that the appetite for ETFs will continue to grow.”

Chew Sutat, head of equities and fixed income, SGX, said 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.”

ABOUT THE AUTHOR
Gary Robinson
Deputy Editor, International Investment and Head of Video at Open Door Media Publishing. A fully qualified journalist and filmmaker with more than 20 years' financial services experience, both as journalist and originally as an IFA.

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