SGX launches SGX APAC
The index is the first of its kind, comprised entirely of REITs in the Asia Pacific region that are dividend weighted, whilst also becoming accessible through an ETF. The dividend-weighted index measures the performance of REITs that pay the largest dividends within the Asia Pacific ex Japan region, providing investors with the opportunity to participate in a portfolio offering significant and sustainable yields. The index’s total return over the twelve months to 29 July 2016 was 19.97%, demonstrating a yield over the same period of 4.53%.
Phillip Capital Management’s ETF, which will be listed on SGX, highlights the growing investor interest in ETFs in the region and attests to SGX’s status as the regional hub for REITs. The region’s ETF market is fast developing and poised for strong growth, with ETF assets in Asia expected to reach US$560 billion by 2021.The SGX APAC ex Japan Dividend Leaders REIT Index captures over 70% of the region’s REIT universe by total capitalisation, taking into consideration size, free-float and liquidity. All constituent weights are capped at 10% to ensure greater portfolio diversification. The index was designed and built using SGX’s in-house index engineering expertise, in consultation with Phillip Capital Management.