SGX APAC ex Japan Dividend Leaders REIT Index

sgx:byi
sgx:byj

#1

SGX APAC ex Japan Dividend Leaders REIT Index is launching soon. With both USD and SGD denomination, what is your opinions?

Will it be favourable to get USD or SGD? The projected Div Yield is 5.19%. It only consist of 3 countries, with the bulk being Australia. Do you feel it is not diversified enough?

Source: http://www.phillipfunds.com/uploads/funds file/Phillip SGX APAC Dividend Leaders REIT ETF Product Info Sheet ipo USD.pdf PHLP AP DIV REIT S$D (BYI) PHLP AP DIV REIT US$ (BYJ)


#2

Not much difference ba, if ur money is singdollars, just get the S$ one lo.

Once it is in your CDP, u can sell it as US$ or S$ in future, regardless of which currency domination u bought it.


#3

I didn’t know that … I thot we have to sell at the same currency


#4

Neither did I.

Here’s the info

http://www.phillipfunds.com/home/etfs

"Q: How does dual currency trading work?

The ETF shares can be traded in two different currency denominations on the SGX-ST, i.e. USD, and SGD. Investors can buy and/or sell units in the ETF in USD or SGD, regardless of the currency in which it was first bought and/or sold. Each unit of the two currency counters entitles an investor to one unit of the same ETF.

Unit holdings in the ETF will be consolidated in investors’ CDP accounts so the total number of units can be viewed at a glance – for example, 1,000 USD-denominated units and 1,000 SGD-denominated units will be reflected as 2,000 units in an investor’s CDP account."


#5

I find this uninteresting due to the charges…

"Q: What makes up total expenses for the ETF?**

A: Apart from management fees (0.30% p.a.), there are other fees such as index licensing, trustee and auditor fees, etc. Total expense ratio (TER) of the ETF will be capped at 0.65% of AUM p.a."

You will be paying almost 1% in management charges.

…and the taxes.

"Q: What are the tax implications for investing in this ETF?**

A: As the ETF is domiciled in Singapore, there will be no capital gains tax or dividend withholding tax charged to Singapore individuals. However, on the ETF level, distributions received from underlying REITs would be subjected to dividend withholding and corporate taxes. The fund would be charged 15% withholding tax on dividends received from Australia, 17% corporate tax for dividends received from Singapore. No withholding or corporate tax would be charged for dividends received from Hong Kong."

The yield has performed under their expectations.

2017 4.18
2018 annualised 3.16 at the current price.


#6

Looked at this before. High fees and too much invested in Australia.