Phillip SING Income ETF: Highlights of the newly launched SING Inc ETF October 1, 2018 2100

Phillip Capital Management (PCM) is launching its latest ETF product – Phillip SING Income ETF. The investment objective of Phillip SING Income ETF is to replicate, before fees and expenses, the performance of the Morningstar® Singapore Yield Focus IndexSM (MSYF).

  • Access to 30 high-quality Singapore Listed Stocks
  • Full replication of Morningstar® Singapore Yield Focus Index
  • Strategic Beta stocks selection (Enhanced version of STI selections)
  • Weights for individual stock capped at 10% (Well diversified)
  • Semiannual distribution – June & December

Quality of Underlying Portfolio – Morningstar® Singapore Yield Focus IndexSM

The MSYF captures the performance of a quality income strategy using the proprietary factors that underpin the Morningstar® Global Dividend Yield Focus Index family. The selection universe contains securities whose primary listing are on the SGX.

Strategic Beta for stocks selection with emphasis on 3 factors:

  1. Business Quality: A normalized value of the quantitative moat score. A score of zero can be interpreted as the average, and a positive (negative) value implies high (low) quality.
  2. Financial Health: A normalized value of the Distance to Default (DtD) score of the company. Higher scores imply stronger financial health and therefore a lower risk of bankruptcy.
  3. Dividend Yield: A normalized value of the trailing 12-month (TTM) dividend yield of the company. Higher scores imply attractive dividend yield.

Track record

Stable and quality income with semi-annual dividend distribution

Single security maximum weight is capped at 10% to avoid excessive security concentration, and rebalancing is done every 6 months. Dividends will be distributed every June and December.

Constituent Weightings of the Index

Index Constituents

Sector

Portfolio Weight (%)

Phillip Securities Research – Singapore Stocks Coverage

Singapore Telecommunications Ltd  

Telecommunication Services

10.2%

 

DBS Group Holdings 

Financials

8.5%

Buy – 3-Aug-18

Overseas-Chinese Banking

Financials

7.9%

Buy – 7-Aug-18

United Overseas Bank 

Financials

7.5%

Buy – 26-Sept-18

Singapore Exchange Ltd

Financials

5.8%

Buy – 30-Jul-18

Singapore Technologies Engineering Ltd

Industrials

5.2%

 

SATS Ltd

Industrials

5.1%

Accumulate – 20-Jul-18

CapitaLand Commercial Trust 

Real Estate

5.4%

Accumulate – 20-Jul-18

Hong Kong Land Hldgs Ltd 

Real Estate

4.7%

 

CapitaLand Mall Trust REIT 

Real Estate

5.2%

Neutral – 28-Aug-18

Mapletree Commercial Trust

Real Estate

4.7%

 

NetLink NBN Trust

Telecommunication Services

4.1%

 

Dairy Farm Intl Hldgs Ltd 

Consumer Staples

3.5%

 

SIA Engineering Co

Industrials

2.2%

Accumulate – 20-Jul-18

Parkway Life REIT

Real Estate

2.3%

 

Sheng Siong Group Ltd

Consumer Staples

2.1%

Accumulate – 2-Aug-18

M1 Ltd  

Telecommunication Services

1.6%

 

Manulife US Real Estate Investment Trust

Real Estate

1.6%

 

Keppel Infrastructure Trust 

Utilities

1.6%

 

United Engineers Ltd

Real Estate

1.4%

 

OUE Hospitality Trust 

Real Estate

1.5%

 

Starhub  

Telecommunication Services

1.2%

 

Haw Par Corp Ltd 

Health Care

1.4%

 

First Real Estate Investment Trust

Real Estate

1.0%

Neutral – 19-Sep-18

AIMS AMP Capital Industrial 

Real Estate

0.9%

 

Hong Leong Finance Ltd

Financials

0.9%

 

SPH REIT 

Real Estate

0.9%

 

Raffles Medical Group  

Health Care

0.8%

Accumulate – 8-Aug-18

Frasers Hospitality Trust 

Real Estate

0.5%

 

Silverlake Axis Ltd

Information Technology

0.4%

 

Source: PCM, Morningstar Research Pte. Ltd., Bloomberg, as of 31 August 2018 and is subject to change.

 

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