ETF, REIT & Business Trust
Exchange-Traded Fund “ETF”, Real Estate Investment Trust “REIT” and Business Trust “BT” are the SGX’s popular securities among international investors. What is ETF? Needless to say more. The number of ETFs listed on SGX is about 90, 3 counters with relatively high turnover are iShare MSCI India Index (SGD-denominated: ISMIA.SG, USD-denominated: ISMI.SG), SPDR Strait Times Index (STIS.SG) and iShare Asia High Yield bond (SGD-denominated: ISAHYA.SG, USD-denominated: ISAHY.SG). For detail on ETFs, please Click Here to SGX’s ETF pages.
Real Estate Investment Trust "REIT" is a collective investment schemes, primarily investing in income-generating real estate properties in Singapore and/or overseas, such as shopping malls, offices, hotels and service apartments, with an aim to provide investors with stable income. All or the majority of a REIT's net income after tax is paid to investors in the form of dividends at regular intervals. As pursuant to prevailing regulations of Monetary Authority of Singapore, a REIT may also invest in listed or unlisted debt securities and listed shares of or issued by local or foreign non-property companies, securities issued on behalf of the Singapore government or foreign governments or by a supranational agency or by a Singapore statutory board, or cash and cash equivalent items. The majority of a REIT’s assets must, however, be made up of real estate or real estate-related assets. Moreover, investors are reminded that a REIT's available distribution amount is adjusted by profit / loss realized in revaluation or sale of its real estate projects. In addition to REIT, there are two alternatives in real-estate related vehicles - Property Trusts and Stapled Trusts, the later is a hybrid of REIT and Property Trust. For detail and the list of REITs, please Click Here to SGX's REIT pages. 3 Popular REITs with relatively huge turnover are ASCENDAS REAL ESTATE INVESTMENT TRUST (ARE.SG), CAPITALAND MALL TRUST (CTM.SG), CAPITALAND COMMERCIAL TRUST (CCT.SG).
Business Trust "BT" fits for corporations with stable business and growing cash flow, such as infrastructure, utility, shipping and transportation vehicle leasing. The advantage is that investors have direct exposure to cash flow-generating assets, securitizing huge-capital assets into liquid and affordable units. Business Trust has an attribute of generally higher payout ratio and complies with Trustee-Manager accord while considering acquisition of assets. Trustee and manager takes active approach to increase rate of return through business expansion and asset acquisition, their incentives generally are aligned with the interest of unit holders. The key risk of investing in BT is on its asset holding and investment focus, for example, future distribution does not match expectation and unstable condition of its business geography. Three BTs with relatively good turnover are HUTCHISON PORT HOLDINGS TRUST (SGD-denominated: HPHSG.SG, USD-denominated: HPH.SG)、KEPPEL INFRASTRUCTURE TRUST (CSIT.SG)、ASIAN PAY TELEVISION TRUST (APTT.SG).
Joining Phillip’s Share Mortgage Scheme, customer can purchase stocks from a designated stock list at market price by just deposit 30% of the value of the intended stock (minimum HK$30,000). The remaining 70% of the investment amount will be financed by Phillip.
For the details of Share Mortgage Scheme, click here
For margin ratio of each stock, click here