A new ETF in Singapore

29 Oct 2018

The Singapore team of international law firm Simmons & Simmons has advised Asian fund management company, Phillip Capital Management (S) Ltd on the successful launch of the Phillip SING Income ETF (ETF). The ETF will be listed on the Singapore Exchange Securities Trading Limited (SGX-ST) on 29 October 2018. Phillip Capital Management operates in the financial hubs of 16 countries and regions including offices in Singapore, Kuala Lumpur, Bangkok, Jakarta, Hong Kong and London.

Simmons & Simmons JWS acted for Phillip Capital Management in respect of the ETF establishment, authorisation and listing in Singapore. The firm was Lead Counsel for the project.

The ETF tracks the performance of the Morningstar® Singapore Yield Focus IndexSM (Index). The Index comprises the top 30 high quality dividend stocks listed on the SGX-ST.

The new ETF is designed for investors seeking dividends and capital gains and will prove to be an asset to investors looking for yield and exposure to SGX-ST listed stocks. Unlike the Straits Times Index which simply weighs its constituents based on their market caps, the Index selects and weighs its components according to their composite factor scores which comprises the quantitative moat score, financial health factor, and trailing 12-month dividend yield.

Discussing the new ETF, Jeffrey Lee, managing director and chief investment officer of Phillip Capital Management said: “The Phillip SING Income ETF is unique as the constituent securities of the initial portfolio of the index offers dividend yield in excess of 4% per annum, a significant yield advantage to long-term Singapore Government Bonds. The historical track record of the Morningstar index that the ETF tracks has consistently delivered dividend and capital growth since constitution in June 2005.”

Commenting on the firm’s involvement in the launch Simmons & Simmons partner and head of Singapore Investment Funds, Jek-Aun Long said: “We are really proud to have assisted Phillip Capital Management with the successful launch of the Phillip SING Income ETF. Phillip Capital Management has been one of the most active local fund managers in the Singapore ETF space in recent years and the launch of this ETF will further solidify their strong position in this space.”

The Simmons & Simmons legal team comprised our Singapore funds specialists: Jek-Aun Long (Head of Singapore Investment Funds, Simmons & Simmons JWS), Aik-Kai Ng (Supervising Associate, Simmons & Simmons JWS) and Benedict Tan (Supervising Associate, Simmons & Simmons JWS).

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