Phillip Capital Management launches a new income ETF. This is what Singapore investors need to know about it.
Phillip Capital Management launched its latest ETF on Monday, Oct 1. The Phillip SING Income ETF (exchange traded fund) is a yield focused ETF that will replicate the Morningstar Singapore Yield Focus Index.
Phillip Capital Management is the fund management arm of Phillip Capital, and it manages other ETFs like the Phillip SGX APAC Dividend Leaders REIT ETF, as well as funds like the Phillip Asia Pacific Growth Fund, Phillip Singapore Real Estate Income Fund, and Singapore’s largest retail Singapore Dollar money market fund, the Phillip Money Market Fund.
The Morningstar Singapore Yield Focus Index uses a quantitative and ruled-based methodology to identify stocks that have good business quality, financial health and offer healthy dividend yields.
The initial portfolio of the index offers a dividend yield of more than 4%, and boasts familiar names in the healthcare, defence, real estate, banking, and telecommunication industries that are listed on the Singapore Exchange.
The index is rebalanced every six months and will cap the maximum weighting of any index security at 10% during the rebalancing exercise. The ETF also intends to declare dividends every half yearly in June and December.
The initial offer period for the ETF opened on Oct 1 and will close on Oct 19. The ETF will start trading on the Singapore Exchange on Oct 29, subject to approvals from the exchange.
The issue price for each unit is $1 and the minimum subscription amount for the ETF is 50,000 units. However, participating dealers may set a lower minimum amount for retail investors.