Phillip SING Income ETF

BBCWatcher

BBCWatcher

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assiak71 said:
Please correct me if wrong
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You’re wrong. ;)

Taxes aren’t everything, especially when you’re not considering all taxes. The pre-distribution dividend tax is but one type of tax. Real estate in Singapore is uniquely subject to a great deal of taxation in many forms that doesn’t apply (or applies less severely) to, say, a manufacturer, a telecommunications company, or a shipper.(*) Real estate taxes were recently (July, 2018) increased, as a matter of fact.

So you evaluate the sector as a sector, including tax burdens and reliefs and government policies that are strictly limiting upside. If you believe that, after considering all factors (including the different mix of taxes), the real estate sector will outperform the rest of Singapore’s economy(**) going forward, then overweight real estate in Singapore. Otherwise, don’t.

I don’t like to overweight anything unless there’s a damn good reason, and more favorable tax treatment for only one of the many forms of taxes that real estate faces is not a damn good reason.

(*) Some of these non-real estate firms receive government subsidies.

(**) At this point a comedian would point out that Singapore’s economy doesn’t consist of very much except real estate since so many people seem to have a real estate fetish in this Little Red Dot. :D In fact, there is a bit more to Singapore’s economy than real estate, believe it or not.
 
goldnut

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BBCWatcher said:
* Lion Global’s new “All Seasons” unit trusts are mildly interesting, with caveats.
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http://www.lionglobalinvestors.com/en/resources/pdf/reports/LGASF-Media-Release_Final_18-July-2018.pdf

To ensure accessibility to the average investor, the minimum initial subscription is set at only S$100. Subsequent subscriptions can also be made at S$100. Investors may subscribe to the Fund using cash or Supplementary Retirement Scheme (SRS) monies.
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https://www.businesstimes.com.sg/companies-markets/lion-global-launches-low-cost-active-funds-total-expense-ratio-at-05

There are two versions of the fund. The Standard fund is 70 per cent in fixed income and 30 per cent in equities. The Growth fund is 70 per cent in equities and the balance in fixed income. The portfolios are allocated into five Lion Global unit trusts and two exchange-traded funds (ETFs). The ETFs are the Vanguard S&P 500 ETF and DB x-trackers Euro Stoxx 50 ETF.
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It looks interesting, but has it already launched?
 
BBCWatcher

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goldnut said:
It looks interesting, but has it already launched?
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Yes, it has.

There are some flaws, though. First, the GDP weighting doesn't make much sense, at least because it's a GDP weighting applied to the countries where stocks happen to be listed. If you're going to GDP weight, you ought to do it based on how the companies you're investing in earn their revenues (or profits). For example, last I checked McDonald's earns about 2/3rds of its revenues outside the United States. Its stock just happens to be listed/traded in the United States. But guess what? If you GDP weight that way, you're at least going to be closer to a market capitalization-based weighting. Anyway, I have no idea from an investment point of view why LionGlobal's weighting makes sense. Of course, it makes sense if you're LionGlobal and trying to steer more of the dollars into your own in-house funds. ;) (And that's not my original observation; others have pointed that out.)

Second, they apply Singapore dollar hedging to the bond portion of their portfolio. I don't like that, especially for the Standard variant of the fund. Just pick a bond allocation and be done with it. For example, the Standard variant of the fund might be this:

70%: global stocks
30%: bonds, of which half (15%) is Singapore dollar denominated

And the Conservative variant might be this:

30%: stocks, of which half (15%) is SGX listed/traded
70%: bonds, of which 5/7ths (50%) is Singapore dollar denominated

And that'd be perfectly fine. The hedging is an extra, unnecessary cost.

OK, with those reservations (and some others), they have a mildly interesting pair of funds that are worth considering in certain contexts.
 
goldnut

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BBCWatcher said:
Yes, it has.

There are some flaws, though. First, the GDP weighting doesn't make much sense, at least because it's a GDP weighting applied to the countries where stocks happen to be listed. If you're going to GDP weight, you ought to do it based on how the companies you're investing in earn their revenues (or profits). For example, last I checked McDonald's earns about 2/3rds of its revenues outside the United States. Its stock just happens to be listed/traded in the United States. But guess what? If you GDP weight that way, you're at least going to be closer to a market capitalization-based weighting. Anyway, I have no idea from an investment point of view why LionGlobal's weighting makes sense. Of course, it makes sense if you're LionGlobal and trying to steer more of the dollars into your own in-house funds. ;) (And that's not my original observation; others have pointed that out.)

Second, they apply Singapore dollar hedging to the bond portion of their portfolio. I don't like that, especially for the Standard variant of the fund. Just pick a bond allocation and be done with it. For example, the Standard variant of the fund might be this:

70%: global stocks
30%: bonds, of which half (15%) is Singapore dollar denominated

And the Conservative variant might be this:

30%: stocks, of which half (15%) is SGX listed/traded
70%: bonds, of which 5/7ths (50%) is Singapore dollar denominated

And that'd be perfectly fine. The hedging is an extra, unnecessary cost.

OK, with those reservations (and some others), they have a mildly interesting pair of funds that are worth considering in certain contexts.
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I see. Thank you for the explanation. :)
 
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blueblur11

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some info

can find subscription info on poems homepage

theres also a short video on the ETF on their youtube page titled "Phillip SING Income ETF: Access High Quality Singapore Stocks"
 
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Any experts can reply

Are the constituents' dividend taxed at the fund level? Yes for reits right (17%, until they apply and get the tax transparency thing). What about non-reits?
 
kehyi4

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https://www.businesstimes.com.sg/companies-markets/phillip-sing-income-etf-makes-singapore-bourse-debut

Phillip SING Income ETF makes Singapore bourse debut
MON, OCT 29, 2018 - 10:07 AM

PHILLIPCAPITAL'S third exchange-traded fund (ETF), which tracks the 30-stock Morningstar Singapore Yield Focus Index, started trading on the Singapore Exchange (SGX) on Monday.

The income-focused Phillip SING Income ETF made its debut at S$1.005 at the opening bell and was trading at S$1.002 as at 9.55am.

Units were offered at an issue price of S$1.000 apiece during the initial offer period from Oct 1 to 29.

The fund had S$68 million in initial assets under management (AUM) at the close of subscription.

Chan Kum Kong, head of research and products at the SGX, said in a media statement: "ETFs are gaining popularity, with SGX-listed ETF AUM growing by 17 per cent to S$4.5 billion last year.

"The number of direct ETF holders have doubled in the last three years, while the number of investors purchasing ETFs via regular savings programmes is also steadily increasing."

PhillipCapital has previously issued two other Singapore-listed ETFs: the Phillip SGX APAC Dividend Leaders Reit ETF and Lion-Phillip S-Reit ETF. The SGX plays host to 53 ETFs in all.
 
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genie47

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BBCWatcher said:
* An ATM card issuer that offers a Mastercard network card with no bank markup and with up to 3 ATM operator fee rebates per month.
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Youtrip Mastercard. It is from EZlink. It is a topup card but the spread is around 0.3% following Mastercard's exchange rates for many currencies save for USD, GBP, JPY etc which is listed. You have to "exchange" on the card and the spread is close to Change Alley spreads for cash. Withdrawal from ATM for the top'd up amount is $5 per withdrawal. You can top it up to 3k. You can freeze the card through their app.


https://www.you.co/en-SG/
 
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Where can one get the latest constituents of Philip Sing Income ETF? Any link? Thank you.
 
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