Singapore Exchange (SGX)

More choices available for ETF investors in SGX...

SGX plans first ETF for Singapore REITs

SINGAPORE (June 6): Singapore Exchange (SGX) is planning to offer the first exchange traded fund (ETF) to track the performance of  the 20 largest Singapore real estate investment trusts (REITs), local media reported.
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http://www2.theedgemarkets.com/sg/articl...re-reits-0

Just curious. When those REITs issue Rights to the public. How's the ETF manage them ? Will the holders lose out ?

(06-06-2016, 08:43 PM)corydorus Wrote: Just curious. When those REITs issue Rights to the public. How's the ETF manage them ? Will the holders lose out ?

My guess is that the ETF manager has to react accordingly based on the %weightage of the particular REIT that called for the right issue. If it is "nil paid rights", then they will be classified as a separate interim holding, sold and subscribed accordingly like all other holdings to continue to maintain the %weightage for all the individual components in the ETF.

(07-06-2016, 09:15 AM)weijian Wrote:

(06-06-2016, 08:43 PM)corydorus Wrote: Just curious. When those REITs issue Rights to the public. How's the ETF manage them ? Will the holders lose out ?

My guess is that the ETF manager has to react accordingly based on the %weightage of the particular REIT that called for the right issue. If it is "nil paid rights", then they will be classified as a separate interim holding, sold and subscribed accordingly like all other holdings to continue to maintain the %weightage for all the individual components in the ETF.

Yes, I concur.

One of the "KPIs" of ETF managers, is to minimize tracking error, rather than chasing an "alpha".

(19-05-2016, 09:15 PM)weijian Wrote: Offering retail bonds as long as you satisfy certain set of conditions or had listed your 200k/pop bond 6months earlier? What the wise man does in the beginning, the fool does in the end?

SGX provides retail investors greater access to bonds
Singapore Exchange (SGX) is increasing the range of bonds available to retail investors with the introduction of the bond seasoning framework effective today.

The framework will enable retail investors to buy wholesale bonds initially offered to institutions and accredited investors, in denominations as small as S$1,000 six months after the bonds are listed on SGX.  These bonds will be offered by issuers which meet minimum criteria relating to their size, track record and listing history. SGX currently lists 1,900 wholesale bonds which are only available in large denominations of at least S$200,000, and/or offered to institutions or accredited investors. 

http://www.sgx.com/wps/wcm/connect/sgx_e...s_to_bonds

Actually, I think a better option is to persuade an ETF issuer to package SGD denominated Corporate bonds into a ETF.

Even better is to have a particular style of ETF called a "Target Maturity Bond Fund". i.e. you buy the universe of corp bonds maturing in, say, 2020. There is no further trading activity in the fund (no rebalancing). You just hold till maturity and then distribute the redemption proceeds to ETF holders. Repeat, as many times as necessary for each target maturity.

This would be ideal for a retirement portfolio.
1. No price risk once you buy unless you want to trade the ETF. Just hold till maturity where necessary. Certainly no price risk from rebalancing.
2. Instant diversification at the price of the ETF fees. No need to worry about specific defaults.
3. Immediate access to the universe of corporate bonds. No need to wait for Seasoning or whatever.
4. Single market. No spread between "retail" and "institutional".

I tried to write in to MAS to offer this suggestion, but was stymied by the feedback form. So I dropped it :-(.

Hong Kong is having similar fate, albeit, due to slightly different reasons...

Finance stars Hong Kong and Singapore appear to dim

HONG KONG — Asia’s financial-hub twins, Hong Kong and Singapore, are facing increasing brakes on growth even before potential turmoil from a Brexit vote in their ex-colonial master, with China’s slowdown and the continuing shrinkage of the financial industry striking both.

Hong Kong’s economy unexpectedly contracted in the first quarter, weighed down by falling retail sales and the weakest property market in 25 years. Singapore eked out only a modest expansion in the same period, hurt by weak exports and a downturn in financial services.
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http://www.todayonline.com/business/fina...appear-dim

weakest property market in 25 years... " that's not true... properties prices are still way high than ever!!! :O

Some landed properties and even HDB are hitting record prices.

SGX and Baltic Exchange extend period of exclusive discussions

Singapore Exchange (SGX) has agreed with the Baltic Exchange Limited (Baltic Exchange) to extend the period of exclusive discussions regarding a cash offer for 100% of the share capital of the Baltic Exchange (Transaction) from 30 June 2016 to 31 August 2016.

SGX and the Baltic Exchange have together met with shareholders and much of the stakeholder community over the past weeks to discuss the Transaction and have made good progress in consultations. The extension to the period of exclusivity allows this dialogue to continue before the final terms of the Transaction are agreed.

Fundamentally I have been saying it makes no sense for a regulator to be listed... massive conflict of interest but also fiduciary duty vs who holds the purse.

Looks like SGX trying to work around through structure:

(Bloomberg) --
Singapore Exchange Ltd. will house its regulatory functions in a unit with its own board, following calls to separate the role.

The subsidiary is expected to be set up by the second half of 2017 and will not add to the requirements of Singapore’s initial share sale process, Southeast Asia’s biggest bourse operator said in a statement. SGX halted its own shares earlier Monday after a Straits Times report on the plans.

http://www.bloomberg.com/news/articles/2...it-by-2017