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Mon, October 05, 2020-9: 12 am
The Singapore-domiciled money market’s first exchange-traded fund (ETF) started trading on Monday with S $ 100 million in initial assets under management (AUM), the Singapore Stock Exchange (SGX) said.
The Phillip SGD money market ETF, managed by Phillip Capital Management, invests in short-term money market securities and deposits of established institutions to generate returns comparable to Singapore dollar savings deposits, SGX announced in a news release on Monday.
The product closely tracks the performance of the Singapore dollar FTSE SGD three-month swap offered interest rate index (SOR), which is an implicit interest rate measure.
According to the Singapore Stock Exchange, the ETF aims to offer fund managers and brokerage firms an additional liquidity management tool to improve the performance of their clients’ cash deposits.
In the meantime, individual investors can implement the fund as “more efficient management of cash relative to their bank savings accounts,” SGX noted.
He added that the fund attracted “great interest” from investors, demonstrating demand for the only money market ETF in Southeast Asia.
Said Linus Lim, Principal and Chief Executive Officer of Phillip Capital Management: “With the Phillip SGD Money Market ETF, investors will be able to improve the return on their funds without compromising liquidity and manage their core investments through a single brokerage account. .
“We believe it will be a simple cash management tool for corporate treasurers and investors.”
SGX Chief Equity Officer Michael Syn said the exchange is pleased to expand SGX’s pool of fixed income ETFs at a time when investors are facing a “prolonged underperforming environment in international markets.”
SGX shares closed at S $ 9.11 on Friday, down S $ 0.04 or 0.4%.
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