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 Index^SM (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 Index^SM

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

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