The SGX building in Singapore. (Photo: REITsWeek)

The Philips SGX APAC Dividend Leaders REIT ETF is scheduled to start trading on 20 October, and aims to make semi-annual distributions to investors, Phillip Capital Management has said.

The ETF will be the first REIT Index-pegged exchange traded fund to be listed in Singapore, and will track the SGX APAC Ex-Japan Dividend Leaders REIT Index that was first announced in August 2016.

The index’s full list of 30 constituent Asia-Pacific REITs can be viewed here.

Initial offer for the ETF has opened and will close at 10:00 a.m. on 13th October, while trading on the Singapore Exchange is expected to commence at 9.00 a.m on the 20th October.

The indicative issue price of each ETF unit during the initial offer period is expected to range from USD0.880 to USD1.100 for the primary currency, and SGD1.188 to SGD1.485 for the secondary currency.

Retail investors can buy and sell units of the ETF in either USD or SGD, regardless of the currency in which it was first bought.

Units of the REIT ETF can be applied through participating dealers including Phillip Securities, DBS Vickers Securities, ABN AMRO Clearing Bank, Commerzbank AG, and UOB Kay Hian.

Distribution payments to investors will be payable within two months after the end of each semi-annual period of each year, said Phillip Capital.

However the firm reminded potential investors that these distributions are not guaranteed, and will be subject to its discretion at all times.

Interested parties are advised to obtain a copy of the prospectus, and the accompanying product highlights sheet, from the listed participating dealers before investing in the REIT ETF.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.